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Wednesday, November 6, 2024
BusinessTimber management: Ghana to begin issuance of FLEGT licenses effective June 2025

Date:

Timber management: Ghana to begin issuance of FLEGT licenses effective June 2025

The Ghanaian government has signed a landmark agreement with the European Union, positioning Ghana to become the first African country to issue Forest Law Enforcement, Governance, and Trade (FLEGT) licenses by June 30, 2025.

The deal was formalized at the 12th session of the Ghana-EU Joint Monitoring Review Mechanism of the Voluntary Partnership Agreement (VPA) in Accra on Wednesday, November 6, 2024, marking a major step forward in sustainable timber management.

The signing of the FLEGT agreement concludes years of extensive stakeholder engagement, solidifying Ghana’s readiness to promote and trade in legally sourced timber products. This milestone also sets Ghana as a model for other countries aiming to implement FLEGT licensing.

In his address, the Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, commended the collective dedication that has brought Ghana to this achievement, making it the first country in the world to issue FLEGT licenses.

Hon. Jinapor described the development as the outcome of productive dialogues focused on enhancing transparency, accountability, and sustainable forest management.

“We came together not only to review our progress but also to reaffirm our shared goals and aspirations for the future. The Aide Memoire we are signing today encapsulates the key outcomes of our discussions and serves as a roadmap for future actions. It underscores our commitment to enhancing transparency, accountability, and the sustainable management of our forest resources,” he stated.

Hon. Jinapor further highlighted the thorough assessment by external auditors, emphasizing that “all identified corrective actions have been duly resolved. This resolution encompasses both the technical foundations of the system and the more complex policy measures that engage the highest levels of our country’s governing structures.”

The minister also acknowledged the crucial support from the United Kingdom before Brexit, noting that grant funding from the UK facilitated Ghana’s development of technical systems, multi-stakeholder platforms, and independent auditing structures under the agreement. He extended gratitude to the EU for their consistent collaboration, stating, “Your expertise and resources have been invaluable in helping us navigate the complexities of this process.”

European Union Ambassador to Ghana, H.E. Irchad Razaaly, expressed satisfaction that Ghana has completed all necessary steps to attain FLEGT issuance status after a 15-year journey. He noted that this new standing will elevate Ghana’s reputation in the global timber market and attract investors confident in the country’s rigorous governance and monitoring practices.

Ghana’s timber and wood products sector generated €60,583,834.31 from the export of 133,125.827 cubic meters of wood in the first half of 2024, according to data from the Forestry Commission.

However, this represents a 14.11% decrease in value and a 14.35% drop in volume compared to the €70,534,416.61 earned from 155,421.875 cubic meters exported over the same period in 2023.

The data for June 2024 shows further declines in both value and volume. A total of €9,147,205.79 was secured from the export of 21,126.359 cubic meters of timber, reflecting a 24.40% reduction in value and an 18.31% decrease in volume compared to June 2023, when €12,100,016.00 was earned from 25,862.898 cubic meters.

Out of the 74 exporters recorded in June 2024, the top five companies — Peacrok Company Limited, 3RDI Shipping Agency Limited, Samartex Timber and Plywood Company Limited, John Bitar and Company Limited, and Golden Logs Exporters Limited — contributed significantly to the sector. These companies exported 11 different wood products, representing 43 different species, to 33 countries, catering to 94 buyers.

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