Country Risk Profiles
List of risks by indicator
Risks are listed below and organised under the relevant indicator. Click on the risk below for details on the specifc risk, mitigation options and the related legal requirements.- Specified Risks
- Low Risks
- Not Applicable
- Low risk concluded
- Risk that concession leases are not converted to Timber Utilisation Contract (TUCs)
- Plantation and reforestation plans are lacking
- Risk that area plans, and operational plans are lacking or not meeting legal requirements
- Illegal issuing of special permits
- Logging takes place without a permit
- Logging takes place without an Entry permit
- Award of salvage permits for banned species in violation with salvage permit conditions
- Low risk concluded
- Low risk concluded
- Low risk concluded
- Low risk concluded
- Protected species are illegally harvested
- Protected areas are illegally harvested
- Low risk concluded
- Personal safety and protective equipment are not provided to or used by workers
- When a union is in place there is a risk that collective bargaining agreements are not in place, or that the terms of the collective bargaining agreements are not met by companies
- Workers do not have contracts and obligatory insurance
- Risk that pensions contribution payment (tier 1 contributions and tier 2 deduction payments) are not paid by the employer
- Low risk concluded
- Low risk concluded
- Low risk concluded
- Low risk concluded
- Transport of logs for the domestic market takes place without Log Measurements Conveyance Certificate (LMCCs)
- Low risk concluded
- Low risk concluded
- CITES species are illegally harvested and exported with a CITES permit fraudulently issued
- Companies operate without legal registration of business
- Processing entities do not have a valid operating environmental permit obtained from the EPA
- Timber processing entities are not registered with the TIDD
- Personal safety and protective equipment are not provided to or used by workers
- When a union is in place there is a risk that collective bargaining agreements are not in place, or that the terms of the collective bargaining agreements are not met by companies
- Workers do not have contracts and obligatory insurance
- Risk that pensions contribution payment (tier 1 contributions and tier 2 deduction payments) are not paid by the employer
However, according to experts consulted (Osei, January 2022), when focusing on land rights related to forest and timber specifically, the legislation is clear about land and tree ownership and management responsibilities of forests, including plantation establishment. If conflicts occur related to land rights, these are usually not about forest areas but in farmland and settlement areas and relate to who becomes the chief, etc. (Frimpong Boamah, 2019).
According to expert consultation, there are no known forest land and tree ownership issues, disputes or violations which have been identified related to the current legal framework. Consequently, the risk is considered as low risk
- Client Earth (2013). Ownership and Use rights of Forest Natural Resources.
- Expert consultation: Joseph Osei, Resourcetrust
- Frimpong Boamah, E., et al. (2019). Planning by (mis)rule of laws: The idiom and dilemma of planning within Ghana's dual legal land systems, Environment and Planning C: Politics and Space (2019).
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
A forest reserve can be managed by the owner (stools or private) under the direction of the Forestry Commission or the Government for the benefit of the owner. The Forestry Commission uses Timber Utilisation Contracts (TUCs) and other permits established with timber companies to execute its management responsibilities. There is, therefore, legal clarity in terms of management responsibilities.
All stool lands in Ghana are vested in the appropriate stool on behalf and in trust for the stool's subjects following customary law and usage (The Constitution of the Republic of Ghana, 1992. Chapter 21, Article 267 (1)). The ownership of land within a proposed forest reserve shall not be altered by being classified as a forest reserve (Forest Act 1927, section 17 (1) (CAP 157)).
Concession Act of 1962 Act 124 (Section 16 Forests reserves and timber concessions) vests all lands with forest reserves in the President in trust for the stools concerned, except for a reserve constituted at the request of a private owner, all off-reserve lands and Kumasi Town lands which had timber concession granted before the commencement of this act, and all timber on any other land. The Timber Resources Management Amendment Act, 2002 (Act 617) excludes private timber plantations from the award of timber rights. The stool chiefs, clan heads and skins hold trusteeship titles to land on behalf of the people. Outright land ownership is not a common form of land tenure in Ghana. Leases and rentals (alienations) are possible, but the land reverts to the allodial titleholders at the expiry of the lease. Article 36 (8) The guiding principles of state policy of the 1992 Constitution of Ghana also provides that ownership and possession of land carry a social obligation to serve the larger community. The managers of public, stool, skin and family lands are trustees charged with the obligation to discharge their functions for the benefit of the people of Ghana, of the stool, skin, or family concerned.
The above mentioned constitutional and legislative provisions clarify land and tree ownership. Stools and owners of alienated land remain the owners of forests, including reserved forests. All naturally occurring trees are vested in the President in trust for the people, while planted trees belong to the landowner. There are ongoing processes to share the benefit from naturally occurring trees outside the forest reserves with those who tend such trees, but this does not affect naturally occurring trees vested in the president.
The Forestry Commission has the legal authority to manage Ghana’s forest reserves and protected areas. This includes granting timber rights and wildlife licenses (Forestry Commission Act 1999 (Act 571), Section 2b). The responsibilities of the Forestry Commission include harvest planning and monitoring the forest condition. After granting harvesting rights, the forest management in practice becomes the “co-responsibility” of the rights holder and the Forestry Commission.
A forest reserve can be managed by the owner (stools or private) under the direction of the Forestry Commission or the Government for the benefit of the owner (Forest Act 1927, CAP 157, Section 17(2)). Except for Pra Anum forest reserve, which the state has taken ownership of, all forest reserves in Ghana are owned by their respective stools. The stool manages none under the direction of the Forestry Commission; the Forestry Commission is managing all forest reserves.
The FC uses Timber Utilisation Contracts (TUCs) and other permits established with timber companies to execute its management responsibilities. There is, therefore, legal clarity in terms of management responsibilities.
- Business registration certificate
- Certificate to commence business
- Registered interest in land with timber rights (optional) for the legal protection of timber rights interest in the area of the timber rights (e.g. land deed)
- Companies Code 1963 (Act 179) (contains business registration requirements)., 1963.
- Constitution of the Republic of Ghana, 1992.
- Forest Act 1927, 1927.
- Forest Concession Act 1962 Act 124, 1962.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management)., 1999.
- Incorporated Private Partnerships Act, 1962 (Act 152), 1962.
- Taxpayers Identification Numbering System, 2002 (Act 632) (outlines the requirements for registration of Tax Codes and Certificates from the Ghana Revenue Authority), 2002.
- Timber Resources Management Amendment Act 2002, (Act 617) (Replaces section 2b to exclude private timber plantations from the award of timber rights., 2002.
The LI 2254 revoked all the previous timber regulations. It helped to do away with their controversial issues such as “special permits”, which some stakeholders felt was being abused by the Forestry Commission to allocate timber rights instead of competitive bidding administratively. The LI 2254 has replaced this with the small-scale TUC through competitive allocation based on the applicant’s technical and financial capabilities, regulatory compliance, one-off TRF and SRA. In addition, the FC is to guarantee public access to information on the key timber rights information on its website or upon request. Currently, this information is not available online.
The previous clearly shows that the introduction of LI 2254 in 2017 have attempted to resolve the contentious issues such as the conversion of leases to TUCs, (as well as the issues related to special permits, SRA on salvage permit areas) and lack of timber rights allocation transparency and information disclosure. The transitional provisions of LI 2254 are in the process of implementation. The FC announced the opening of the conversion of extant leases to TUCs in May 2019 with 7 June 2019 as the deadline, and applications are being processed. The law has addressed the challenges, and the process is back on track, but the transfer of leases to TUC is still in process. As of January 2022, some leases and permit conversion applications had gone through administrative processing but still lacked the approval of the Parliament.
Though it is believed that the conversion of leases and permits will be done soon, there is a legality risk until these leases are converted to TUCs. The final report of Ghana and the European Union (EU) independent assessment of the legality assurance system described in the Voluntary Partnership Agreement (VPA) on FLEGT between Ghana and the EU, which was shared with both parties on 31 December 2020, concluded that the system was not ready due to several gaps, including the long-standing issue of conversion of extant leases to Timber Utilization Contracts, which requires the political approval of the Parliament to happen.
- Natural forest
The forest management entity shall hold a Timber Utilization Contract (TUC).
The legal right to harvest timber in Ghana in the form of concession is granted through the award of small and large scale timber utilisation contracts (TUC) (Act 547, Act 617, LI 2254) by the sector (MLNR) minister acting on the recommendation of the FC. TUC agreements are ratified by the Parliament of Ghana (ACT 547; LI 2254). Both small- and large scale TUCs can be granted on- and off-reserve areas. Timber felling rights are awarded in only production zones. A TUC is not renewable (LI 2254, Art 23).
Large scale TUC allocation process
Large scale TUCs are required to be awarded through competitive bidding processes based on the applicant’s technical and financial capabilities, regulatory compliance, one-off Timber Rights Fees (TRF) and Social Responsibility Agreement (SRA). Competitive bidding involves:
1) pre-qualification evaluation and,
2) the main bidding process for timber rights.
Prequalification requirements include possession of:
1) Certificate of Business Registration;
2) Proof of full payment of applicable forest levies;
3) Income tax, VAT and social security clearance certificates;
4) Where applicable, evidence of value-added processing to maximise income;
5) A statement of all timber rights, including sizes, held by the applicant at the time of the application;
6) Qualification and competence of the timber operations staff of the applicant;
7) Where applicable, proof of membership of a recognised timber trade association; and
8) evidence of a labour certificate.
For the main bidding process, for each area proposed for granting of timber rights, the chief executive of the commission, based on the timber inventory and other relevant information, shall specify:
1) A timber harvest schedule for the area;
2) The amount of performance bond to be posted by the person to whom timber rights to the area may be granted;
3) The amount of a reserve bid below which the grant of timber rights for the area will not be made;
4) Any management requirements and restrictions specific to the contract;
5) The time and place at which the bids will be opened; and
6) Any other information relevant to the grant and exercise of the timber right.
Following this process, a written contract is signed by the Minister and ratified by the Parliament of Ghana, granting timber harvesting right to the successful bidder.
Small scale TUC allocation process
Small scale TUC are granted on 1) production forest reserves or on public land which do not qualify for a full cycle harvest rotation because the timber on those lands is insufficient for long term viable timber operations, and; 2) in an off-reserve area where the tree stocking per unit area is very low and will not qualify for a large scale TUC. The specific time needed for harvesting timber shall not exceed 2 years, and the area identified for small-scale TUC shall not exceed 6 km2 or cover more than 5 compartments. A production forest reserve shall not be fragmented to grant small-scale timber rights (LI 2254, Art 10)
As provided under section 18 - Manner of selection for small scale timber utilisation contracts of LI 2254, small scale timber rights go through competitive allocation rather than competitive bidding for large-scale timber rights. The competitive allocation is a more simplified process than the bidding process for large-scale TUCs, as some process steps have been removed.
According to LI 2254, art 20, a Small Scale TUC shall be awarded based on
a) Technical and financial capabilities as well as the compliance of the applicant with the relevant regulations;
b) A proposal of SRA with local communities and
c) A proposal for the payment of a one-off timber rights fee based on the tree stocking of the area.
The small scale TUC rights hall be awarded to the qualified applicant with the highest offer in terms of the selection criteria in article 20 a-c) (see above) (LI 2254, Art 21(12)).
Public access to information
The FC is to guarantee public access to information on the following key timber rights information on its website or upon request (LI 2254, section 76):
(a) A list of preregistered timber companies;
(b) A list of companies with valid property marks;
(c) A list of large-scale timber utilisation contracts (with specified details);
(d) A list of small-scale timber utilisation contracts (with specified details);
(e) List of salvage permits (with specified details);
(f) A list of certificates of purchase.
- Evidence of a labour certificate
- Evidence of value-added processing to maximise income (if applicable)
- Income tax, value added tax and social security clearance certificates, and;
- Lease Agreements (for on and off reserve plantation operations)
- Proof of full payment of required forest levies;
- Proof of membership of a recognised timber trade association (if applicable)
- Qualification and competence of the company’s staff, with the manager being a professional forester
- Small- or large-scale timber utilisation contract signed by the Minister and ratified by the Parliament of Ghana
- Statement of all timber rights and other logging permits held by applicant at the time of application
- Timber Operational Specifications (TOS)
- Certificate of Business Registration
- Companies Code 1963 (Act 179) (contains business registration requirements)., 1963.
- Incorporated Private Partnerships Act, 1962 (Act 152), 1962.
- National Pension Act 2008 (Act 766), 2008.
- Taxpayers Identification Numbering System, 2002 (Act 632) (outlines the requirements for registration of Tax Codes and Certificates from the Ghana Revenue Authority), 2002.
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management Amendment Act 2002, (Act 617) (Replaces section 2b to exclude private timber plantations from the award of timber rights., 2002.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
- Trees and Timber Act 1974 (NCRD 273), 1974.
- Trees and Timber Amendment Act 1994 (Act 493), 1974.
In March 2021, at least 70 management plans, including new and outdated plans, were under review. In February 2022, FC was almost done reviewing all the management plans for all the production forest reserves (Osei, January 2022).
- Expert consultation: Joseph Osei, Resourcetrust
- Ghana and EU finalise assessment of Ghana Timber Legality Assurance System
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- Plantation in forest reserves
Plantation or reforestation plan approved by the Forestry Commission shall be available
There are different levels of forest management planning in Ghana.
1. Strategic management plans are prepared and implemented by the Forestry Commission at the forest reserve level and the TUC area level,
2. the TUC Holder prepares and implements TUC area plan and TUC 5-year operational plan for TUCs in Forest Reserves (FRs) and Off Forest Reserves (OFRs) covering one coupe (or group) of compartments, and;
3. Compartment Logging Plan covering a single compartment for FRs and annual logging plan for OFRs.
4. Plantations in forest reserves require commercial plantation or afforestation plans prepared by the plantation developer to apply to the Forestry Commission.
The Forestry Commission is responsible for harvesting and monitoring forest conditions (Section 2b of the Forestry Commission Act 1999 (Act 571)). The Forestry Commission (FC) has developed Manual of Operations (MOPs) sections A-F, which operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254).
For any forest reserve (Natural Forest and plantations in forest reserve), the strategic planning sets objectives to guide forest resource management in the long term and delineate the area into production and protective (coarse-grained protection) zone. Timber felling rights are awarded in only production zones. For any Defined Forest Area (DFA) for which harvesting rights are granted, a map delineating the boundary must be prepared by the Forest Services Division. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units called compartments for on-reserve.
As part of the process of awarding and managing the implementation of the TUCs, the Forestry Commission requires companies to prepare operational plans at varying levels of detail using the approved formats contained in the Forestry Commissions Revised Logging Manual the Revised Logging Manual Appendices.
The compartment and annual plans involve pre-harvest inspection and enumeration of commercial species and yield selection. The stock survey or pre-survey inspections must be conducted, and the results of this survey fed into the yield allocation process. The pre-inspection survey and enumeration are verified by an independent team from the Forest Services Division (FSD). The FSD selects individual trees for harvesting and prepares a yield summary (or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (together with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RMSC for vetting.
Thus, before harvesting in any forest reserve compartment or Off-forest Reserve area, the Forest Services Division conducts inventory or enumeration of all trees. MOP Section D prescribes the procedures for the inventory and subsequent selection of trees (yield) for harvesting. During the stock survey enumeration, every tree species with a diameter greater than 50 centimetres belonging to FIP Class I is identified and recorded. Other FIP Class I species with a minimum felling limit of 50 centimetres, and trees in the 30-50 centimetres class, are identified and measured. Unless specially requested by the TUC holder, FIP Class 2 species are not enumerated. The identified and recorded trees are given species code and stock survey numbers. The stock survey number is marked on each tree with ascribing knife, in a position that will not be disturbed if the tree is felled (e.g. at the stump).
Within a month after the stock survey, the FSD conducts a 10% check survey of each compartment to confirm fieldwork accuracy and the validity of subsequent yield allocation. The Resource Management Support Centre of the FC also carries out random check surveys from time to time. Once the stock survey has been completed and checked, the FSD prepares a stock map showing the location of all trees assessed (i.e. summary of the stock survey). A yield that details individual species in various diameter classes is prepared and approved. The TUC holder or contractor uses the approved yield for harvesting.
FSD range supervisor captures the details of each tree felled on a tree information form (TIF). The TIF contains information such as the stock survey number, harvested species, and quantity (volume).
The documents are vetted against the requirements of MoP Section D. In particular, the compartment level plan or the logging plan is a guide to provide compartment level protection (fine-grained protection) for individual species, habitats etc. The plan identifies the site of log dumps, forest road network and planned skidding trails. It is only after this elaborate process that the yield summary (yield marking), harvesting plan/schedule for forest reserves (Act 547 3 (3a), LI 2254 Section 56; MoP Section E) and logging plan for off-forest reserves (MoP Section F) and yield map can be approved and released to the TUC holder for harvesting to commence.
Plantations
Planning for an entry permit for on-reserve plantations is managed by the FC.
Salvage permits
Planning requirements for salvage permits are specified in the contract terms and follows the timber harvesting standards and specifications in Section 3 of the Logging Manual.
- Approved Annual Logging Plan for OFRs (harvesting plan)
- Approved Compartment Logging Plan for FRs (harvesting plan)
- Approved coupes/harvesting schedule or blocks
- Approved map of the concession/permit area
- Approved TUC area plans for Off Forest Reserves (OFRs)
- Approved TUC operational plans for FRs and OFRs
- Approved yield/markings
- Commercial plantation plans for FRs
- Pre-harvest inspection reports
- Signed social Responsibility Agreement (SRA) with forest fringe communities (for TUCs, salvage and other permits)
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
- Trees and Timber Amendment Act 1994 (Act 493), 1974.
In March 2021, at least 70 management plans, including new and outdated plans, were under review. In February 2022, FC was almost done reviewing all the management plans for all the production forest reserves (Osei, January 2022).
- Expert consultation: Joseph Osei, Resourcetrust
- Ghana and EU finalise assessment of Ghana Timber Legality Assurance System
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- Natural forest
There are different levels of forest management planning in Ghana.
1. Strategic management plans are prepared and implemented by the Forestry Commission at the forest reserve level and the TUC area level,
2. the TUC Holder prepares and implements TUC area plan and TUC 5-year operational plan for TUCs in Forest Reserves (FRs) and Off Forest Reserves (OFRs) covering one coupe (or group) of compartments, and;
3. Compartment Logging Plan covering a single compartment for FRs and annual logging plan for OFRs.
4. Plantations in forest reserves require commercial plantation or afforestation plans prepared by the plantation developer to apply to the Forestry Commission.
The Forestry Commission is responsible for harvesting and monitoring forest conditions (Section 2b of the Forestry Commission Act 1999 (Act 571)). The Forestry Commission (FC) has developed Manual of Operations (MOPs) sections A-F, which operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254).
For any forest reserve (Natural Forest and plantations in forest reserve), the strategic planning sets objectives to guide forest resource management in the long term and delineate the area into production and protective (coarse-grained protection) zone. Timber felling rights are awarded in only production zones. For any Defined Forest Area (DFA) for which harvesting rights are granted, a map delineating the boundary must be prepared by the Forest Services Division. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units called compartments for on-reserve.
As part of the process of awarding and managing the implementation of the TUCs, the Forestry Commission requires companies to prepare operational plans at varying levels of detail using the approved formats contained in the Forestry Commissions Revised Logging Manual the Revised Logging Manual Appendices.
The compartment and annual plans involve pre-harvest inspection and enumeration of commercial species and yield selection. The stock survey or pre-survey inspections must be conducted, and the results of this survey fed into the yield allocation process. The pre-inspection survey and enumeration are verified by an independent team from the Forest Services Division (FSD). The FSD selects individual trees for harvesting and prepares a yield summary (or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (together with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RMSC for vetting.
Thus, before harvesting in any forest reserve compartment or Off-forest Reserve area, the Forest Services Division conducts inventory or enumeration of all trees. MOP Section D prescribes the procedures for the inventory and subsequent selection of trees (yield) for harvesting. During the stock survey enumeration, every tree species with a diameter greater than 50 centimetres belonging to FIP Class I is identified and recorded. Other FIP Class I species with a minimum felling limit of 50 centimetres, and trees in the 30-50 centimetres class, are identified and measured. Unless specially requested by the TUC holder, FIP Class 2 species are not enumerated. The identified and recorded trees are given species code and stock survey numbers. The stock survey number is marked on each tree with ascribing knife, in a position that will not be disturbed if the tree is felled (e.g. at the stump).
Within a month after the stock survey, the FSD conducts a 10% check survey of each compartment to confirm fieldwork accuracy and the validity of subsequent yield allocation. The Resource Management Support Centre of the FC also carries out random check surveys from time to time. Once the stock survey has been completed and checked, the FSD prepares a stock map showing the location of all trees assessed (i.e. summary of the stock survey). A yield that details individual species in various diameter classes is prepared and approved. The TUC holder or contractor uses the approved yield for harvesting.
FSD range supervisor captures the details of each tree felled on a tree information form (TIF). The TIF contains information such as the stock survey number, harvested species, and quantity (volume).
The documents are vetted against the requirements of MoP Section D. In particular, the compartment level plan or the logging plan is a guide to provide compartment level protection (fine-grained protection) for individual species, habitats etc. The plan identifies the site of log dumps, forest road network and planned skidding trails. It is only after this elaborate process that the yield summary (yield marking), harvesting plan/schedule for forest reserves (Act 547 3 (3a), LI 2254 Section 56; MoP Section E) and logging plan for off-forest reserves (MoP Section F) and yield map can be approved and released to the TUC holder for harvesting to commence.
Plantations
Planning for an entry permit for on-reserve plantations is managed by the FC.
Salvage permits
Planning requirements for salvage permits are specified in the contract terms and follows the timber harvesting standards and specifications in Section 3 of the Logging Manual.
- Approved Annual Logging Plan for OFRs (harvesting plan)
- Approved Compartment Logging Plan for FRs (harvesting plan)
- Approved coupes/harvesting schedule or blocks
- Approved map of the concession/permit area
- Approved TUC area plans for Forest Reserves (FRs)
- Approved TUC area plans for Off Forest Reserves (OFRs)
- Approved TUC operational plans for FRs and OFRs
- Approved yield/markings
- Commercial plantation plans for FRs
- Pre-harvest inspection reports
- Signed social Responsibility Agreement (SRA) with forest fringe communities (for TUCs, salvage and other permits)
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
- Trees and Timber Amendment Act 1994 (Act 493), 1974.
According to the EIA report, “…salvage permits have turned into a massive laundering mechanism for illegal timber and a source of profit for vested political interests.” (EIA 2019, p. 4)
The Forestry Commission has challenged the EIA report (EIA, 2019), but there are other public reports of illegal harvesting of Rosewood; some of the cases are in the courts. It is argued that this is a case of a single species and can be isolated. However, given that the alleged modus operandi of the “illegal” scheme includes misrepresenting the species, it is possible to apply the same methods to harvest other banned species. News items on published scientific analysis by researchers at the Forestry Research Institute of Ghana (FORIG) also indicate lower reported rosewood export figures to China. In contrast, China's figures for rosewood imports indicate high figures from Ghana. Besides Rosewood, even after the LI 2254 was passed, the Forestry Commission continues to issue special permits instead of competitive allocation (Ghenvironment.org, 2021).
The FSD fines arrested illegal operators, and the lumber was confiscated and auctioned (Derkyi and Dietz, 2014). Such products, therefore, become legal and enter the legal sources of timber. However, these products are mainly traded in the domestic market space.
Chainsaw milling is not allowed in Ghana, but there are an estimated 100,000 chainsaw millers. The numbers have only increased since they were made illegal in 1998 in a failed effort to halt deforestation. In October 2020, according to an unpublished EU review seen by Yale Environment 360, around two-thirds of the timber traded domestically in Ghana was illegal and thus placed on the market without required permits. These operations are publicly known, support some 650,000 mostly rural people, and deliver more than twice as much economic benefit as the commercial legal sector. The situation opens for corruption by leaving the loggers and those who trade in their produce to extortion by local officials and police (Pearce, 2020).
- Environmental Investigation Agency (EIA) (2019). BAN-BOOZLED How corruption and collusion fuel illegal rosewood trade in Ghana.
- Ghenvironment.org (2021). The government sued over continuous issuance of “Special Permits” as timber rights contrary to the law.
- Joint monitoring and review mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 and 15 May, 2019, Accra.
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- My Joy Online (2019). Government Illegally under Declaring Rosewood Export to China, New Study.
- Okeke, C.C. (2019). $17bn annual loss: African countries move to halt illegal rosewood trade.
- OKKA (2019). Forestry Commission disputes BBC report on rosewood trade.
- Pearce, F. (2020). How Small-Scale Loggers can Help Save Africa’s Tropical Forests. Yale Environment 360. Yale E360. October 22, 2020. Published at the Yale School of the Environment [Online].
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Yoda, A. S. S, (2021). Rosewood trafficking worsens in Ghana, EIA releases shocking data for December 2020 exportation to China. 15 February 2021. Ghenvironmnet.org.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Timber harvesting permits in Ghana are granted primarily through the award of:
• Small Scale and Large-Scale Timber utilisation contracts (TUC) (Act 547, Act 617 and LI 2254) by the Minister of the Ministry of Lands and Natural Resources (MLNR), acting on the recommendation of the Forestry Commission. TUC agreements shall be ratified by the Parliament of Ghana (ACT 547). TUC is considered concessions, and the allocation of TUCs are covered under sub-category 1.2.
Apart from TUCs, the Chief Executive, upon recommendations from the FC, and following provisions made in LI 2254, may also grant administrative harvest permits, such as:
• Salvage permits: for abandoned logs or forest areas undergoing developments. For example, farmlands or areas undergoing settlement expansion or road construction (Regulation 28 and 29, LI 2254).
• Entry permit: for plantations in forest reserves managed by the Forestry Commission. The grant of entry permit follows a bidding process and evaluation of bids by the Timber Right Evaluation Committee of the Forestry Commission.
• Timber Utilisation Permit (TUP) grants permission to use a specific number of trees in an area not subject to a TUC for social or community use purposes. See 1.15. Timber from TUP cannot be used for commercial purposes.
The harvesting regulations in Ghana stipulate that the Contactor or TUC holder should hold a valid timber harvesting permit (in the form of TUCs, entry permits or salvage permits) at the time of logging.
For any Defined Forest Area (DFA) for which harvesting permits are granted, a map delimiting the boundary is required to be prepared by the Forest Services Division (FSD) of FC. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units (e.g. compartments). A schedule listing the order in which the coupes/blocks and the sub-divisions are to be logged prepared by the TUC holder and is vetted and endorsed by the Resource Management Support Centre (RMSC) of the FC. For each harvesting unit, pre-harvest inspections (stock survey or pre-survey inspections) must be conducted, and the survey results fed into the yield allocation process. An independent team from the FSD verifies the pre-inspection survey. The FSD prepares a list of individual trees for harvesting (a yield summary or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RSMC for vetting. These documents are vetted against the requirements of MoP Section D. It is only after this elaborate process that the yield summary (or yield marking in off forest reserve areas), logging plan and yield map can be approved and released to the TUC holder for harvesting to commence. The TUC holder must obtain approval for the trees or volume to be harvested (including a permit for restricted species) by an application through the Regional Forest Manager and to hold a valid property mark.
For non-TUC areas, salvage and entry permits are obtained through an application to the Chief Executive of the FC and do not require parliamentary approval. Harvesting requirements are set out in the permit conditions, including volumes to be salvaged, duration and location of the salvage.
- Approved harvesting schedule/blocking or coupes delineation
- Approved yield/markings
- Concession map
- Entry permit or released letter issued by the FSD Forest District
- Logging plan
- Pre-harvest compartment inspections/ field inspection report for salvage permits
- Valid property mark
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
According to the EIA report, “…salvage permits have turned into a massive laundering mechanism for illegal timber and a source of profit for vested political interests.” (EIA 2019, p. 4)
The Forestry Commission has challenged the EIA report (EIA, 2019), but there are other public reports of illegal harvesting of Rosewood; some of the cases are in the courts. It is argued that this is a case of a single species and can be isolated. However, given that the alleged modus operandi of the “illegal” scheme includes misrepresenting the species, it is possible to apply the same methods to harvest other banned species. News items on published scientific analysis by researchers at the Forestry Research Institute of Ghana (FORIG) also indicate lower reported rosewood export figures to China. In contrast, China's figures for rosewood imports indicate high figures from Ghana. Besides Rosewood, even after the LI 2254 was passed, the Forestry Commission continues to issue special permits instead of competitive allocation (Ghenvironment.org, 2021).
The FSD fines arrested illegal operators, and the lumber was confiscated and auctioned (Derkyi and Dietz, 2014). Such products, therefore, become legal and enter the legal sources of timber. However, these products are mainly traded in the domestic market space.
Chainsaw milling is not allowed in Ghana, but there are an estimated 100,000 chainsaw millers. The numbers have only increased since they were made illegal in 1998 in a failed effort to halt deforestation. In October 2020, according to an unpublished EU review seen by Yale Environment 360, around two-thirds of the timber traded domestically in Ghana was illegal and thus placed on the market without required permits. These operations are publicly known, support some 650,000 mostly rural people, and deliver more than twice as much economic benefit as the commercial legal sector. The situation opens for corruption by leaving the loggers and those who trade in their produce to extortion by local officials and police (Pearce, 2020).
- Environmental Investigation Agency (EIA) (2019). BAN-BOOZLED How corruption and collusion fuel illegal rosewood trade in Ghana.
- Ghenvironment.org (2021). The government sued over continuous issuance of “Special Permits” as timber rights contrary to the law.
- Joint monitoring and review mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 and 15 May, 2019, Accra.
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- My Joy Online (2019). Government Illegally under Declaring Rosewood Export to China, New Study.
- Okeke, C.C. (2019). $17bn annual loss: African countries move to halt illegal rosewood trade.
- OKKA (2019). Forestry Commission disputes BBC report on rosewood trade.
- Pearce, F. (2020). How Small-Scale Loggers can Help Save Africa’s Tropical Forests. Yale Environment 360. Yale E360. October 22, 2020. Published at the Yale School of the Environment [Online].
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Yoda, A. S. S, (2021). Rosewood trafficking worsens in Ghana, EIA releases shocking data for December 2020 exportation to China. 15 February 2021. Ghenvironmnet.org.
- Natural forest
TUCs shall be available and contain the required documentation/ information:
- Concession map;
- Valid property mark;
- Approved harvesting schedule/blocking or coupes delineation;
- Pre-harvest compartment inspections;
- Approved yield/yield marking;
- Logging plan
Timber harvesting permits in Ghana are granted primarily through the award of:
• Small Scale and Large-Scale Timber utilisation contracts (TUC) (Act 547, Act 617 and LI 2254) by the Minister of the Ministry of Lands and Natural Resources (MLNR), acting on the recommendation of the Forestry Commission. TUC agreements shall be ratified by the Parliament of Ghana (ACT 547). TUC is considered concessions, and the allocation of TUCs are covered under sub-category 1.2.
Apart from TUCs, the Chief Executive, upon recommendations from the FC, and following provisions made in LI 2254, may also grant administrative harvest permits, such as:
• Salvage permits: for abandoned logs or forest areas undergoing developments. For example, farmlands or areas undergoing settlement expansion or road construction (Regulation 28 and 29, LI 2254).
• Entry permit: for plantations in forest reserves managed by the Forestry Commission. The grant of entry permit follows a bidding process and evaluation of bids by the Timber Right Evaluation Committee of the Forestry Commission.
• Timber Utilisation Permit (TUP) grants permission to use a specific number of trees in an area not subject to a TUC for social or community use purposes. See 1.15. Timber from TUP cannot be used for commercial purposes.
The harvesting regulations in Ghana stipulate that the Contactor or TUC holder should hold a valid timber harvesting permit (in the form of TUCs, entry permits or salvage permits) at the time of logging.
For any Defined Forest Area (DFA) for which harvesting permits are granted, a map delimiting the boundary is required to be prepared by the Forest Services Division (FSD) of FC. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units (e.g. compartments). A schedule listing the order in which the coupes/blocks and the sub-divisions are to be logged prepared by the TUC holder and is vetted and endorsed by the Resource Management Support Centre (RMSC) of the FC. For each harvesting unit, pre-harvest inspections (stock survey or pre-survey inspections) must be conducted, and the survey results fed into the yield allocation process. An independent team from the FSD verifies the pre-inspection survey. The FSD prepares a list of individual trees for harvesting (a yield summary or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RSMC for vetting. These documents are vetted against the requirements of MoP Section D. It is only after this elaborate process that the yield summary (or yield marking in off forest reserve areas), logging plan and yield map can be approved and released to the TUC holder for harvesting to commence. The TUC holder must obtain approval for the trees or volume to be harvested (including a permit for restricted species) by an application through the Regional Forest Manager and to hold a valid property mark.
For non-TUC areas, salvage and entry permits are obtained through an application to the Chief Executive of the FC and do not require parliamentary approval. Harvesting requirements are set out in the permit conditions, including volumes to be salvaged, duration and location of the salvage.
- Approved harvesting schedule/blocking or coupes delineation
- Approved yield/markings
- Concession map
- Entry permit or released letter issued by the FSD Forest District
- Logging plan
- Pre-harvest compartment inspections/ field inspection report for salvage permits
- Valid property mark
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
According to the EIA report, “…salvage permits have turned into a massive laundering mechanism for illegal timber and a source of profit for vested political interests.” (EIA 2019, p. 4)
The Forestry Commission has challenged the EIA report (EIA, 2019), but there are other public reports of illegal harvesting of Rosewood; some of the cases are in the courts. It is argued that this is a case of a single species and can be isolated. However, given that the alleged modus operandi of the “illegal” scheme includes misrepresenting the species, it is possible to apply the same methods to harvest other banned species. News items on published scientific analysis by researchers at the Forestry Research Institute of Ghana (FORIG) also indicate lower reported rosewood export figures to China. In contrast, China's figures for rosewood imports indicate high figures from Ghana. Besides Rosewood, even after the LI 2254 was passed, the Forestry Commission continues to issue special permits instead of competitive allocation (Ghenvironment.org, 2021).
The FSD fines arrested illegal operators, and the lumber was confiscated and auctioned (Derkyi and Dietz, 2014). Such products, therefore, become legal and enter the legal sources of timber. However, these products are mainly traded in the domestic market space.
Chainsaw milling is not allowed in Ghana, but there are an estimated 100,000 chainsaw millers. The numbers have only increased since they were made illegal in 1998 in a failed effort to halt deforestation. In October 2020, according to an unpublished EU review seen by Yale Environment 360, around two-thirds of the timber traded domestically in Ghana was illegal and thus placed on the market without required permits. These operations are publicly known, support some 650,000 mostly rural people, and deliver more than twice as much economic benefit as the commercial legal sector. The situation opens for corruption by leaving the loggers and those who trade in their produce to extortion by local officials and police (Pearce, 2020).
- Environmental Investigation Agency (EIA) (2019). BAN-BOOZLED How corruption and collusion fuel illegal rosewood trade in Ghana.
- Ghenvironment.org (2021). The government sued over continuous issuance of “Special Permits” as timber rights contrary to the law.
- Joint monitoring and review mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 and 15 May, 2019, Accra.
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- My Joy Online (2019). Government Illegally under Declaring Rosewood Export to China, New Study.
- Okeke, C.C. (2019). $17bn annual loss: African countries move to halt illegal rosewood trade.
- OKKA (2019). Forestry Commission disputes BBC report on rosewood trade.
- Pearce, F. (2020). How Small-Scale Loggers can Help Save Africa’s Tropical Forests. Yale Environment 360. Yale E360. October 22, 2020. Published at the Yale School of the Environment [Online].
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Yoda, A. S. S, (2021). Rosewood trafficking worsens in Ghana, EIA releases shocking data for December 2020 exportation to China. 15 February 2021. Ghenvironmnet.org.
- Plantation in forest reserves
Timber harvesting permits in Ghana are granted primarily through the award of:
• Small Scale and Large-Scale Timber utilisation contracts (TUC) (Act 547, Act 617 and LI 2254) by the Minister of the Ministry of Lands and Natural Resources (MLNR), acting on the recommendation of the Forestry Commission. TUC agreements shall be ratified by the Parliament of Ghana (ACT 547). TUC is considered concessions, and the allocation of TUCs are covered under sub-category 1.2.
Apart from TUCs, the Chief Executive, upon recommendations from the FC, and following provisions made in LI 2254, may also grant administrative harvest permits, such as:
• Salvage permits: for abandoned logs or forest areas undergoing developments. For example, farmlands or areas undergoing settlement expansion or road construction (Regulation 28 and 29, LI 2254).
• Entry permit: for plantations in forest reserves managed by the Forestry Commission. The grant of entry permit follows a bidding process and evaluation of bids by the Timber Right Evaluation Committee of the Forestry Commission.
• Timber Utilisation Permit (TUP) grants permission to use a specific number of trees in an area not subject to a TUC for social or community use purposes. See 1.15. Timber from TUP cannot be used for commercial purposes.
The harvesting regulations in Ghana stipulate that the Contactor or TUC holder should hold a valid timber harvesting permit (in the form of TUCs, entry permits or salvage permits) at the time of logging.
For any Defined Forest Area (DFA) for which harvesting permits are granted, a map delimiting the boundary is required to be prepared by the Forest Services Division (FSD) of FC. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units (e.g. compartments). A schedule listing the order in which the coupes/blocks and the sub-divisions are to be logged prepared by the TUC holder and is vetted and endorsed by the Resource Management Support Centre (RMSC) of the FC. For each harvesting unit, pre-harvest inspections (stock survey or pre-survey inspections) must be conducted, and the survey results fed into the yield allocation process. An independent team from the FSD verifies the pre-inspection survey. The FSD prepares a list of individual trees for harvesting (a yield summary or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RSMC for vetting. These documents are vetted against the requirements of MoP Section D. It is only after this elaborate process that the yield summary (or yield marking in off forest reserve areas), logging plan and yield map can be approved and released to the TUC holder for harvesting to commence. The TUC holder must obtain approval for the trees or volume to be harvested (including a permit for restricted species) by an application through the Regional Forest Manager and to hold a valid property mark.
For non-TUC areas, salvage and entry permits are obtained through an application to the Chief Executive of the FC and do not require parliamentary approval. Harvesting requirements are set out in the permit conditions, including volumes to be salvaged, duration and location of the salvage.
- Approved harvesting schedule/blocking or coupes delineation
- Approved yield/markings
- Concession map
- Entry permit or released letter issued by the FSD Forest District
- Logging plan
- Pre-harvest compartment inspections/ field inspection report for salvage permits
- Valid property mark
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
According to the EIA report, “…salvage permits have turned into a massive laundering mechanism for illegal timber and a source of profit for vested political interests.” (EIA 2019, p. 4)
The Forestry Commission has challenged the EIA report (EIA, 2019), but there are other public reports of illegal harvesting of Rosewood; some of the cases are in the courts. It is argued that this is a case of a single species and can be isolated. However, given that the alleged modus operandi of the “illegal” scheme includes misrepresenting the species, it is possible to apply the same methods to harvest other banned species. News items on published scientific analysis by researchers at the Forestry Research Institute of Ghana (FORIG) also indicate lower reported rosewood export figures to China. In contrast, China's figures for rosewood imports indicate high figures from Ghana. Besides Rosewood, even after the LI 2254 was passed, the Forestry Commission continues to issue special permits instead of competitive allocation (Ghenvironment.org, 2021).
The FSD fines arrested illegal operators, and the lumber was confiscated and auctioned (Derkyi and Dietz, 2014). Such products, therefore, become legal and enter the legal sources of timber. However, these products are mainly traded in the domestic market space.
Chainsaw milling is not allowed in Ghana, but there are an estimated 100,000 chainsaw millers. The numbers have only increased since they were made illegal in 1998 in a failed effort to halt deforestation. In October 2020, according to an unpublished EU review seen by Yale Environment 360, around two-thirds of the timber traded domestically in Ghana was illegal and thus placed on the market without required permits. These operations are publicly known, support some 650,000 mostly rural people, and deliver more than twice as much economic benefit as the commercial legal sector. The situation opens for corruption by leaving the loggers and those who trade in their produce to extortion by local officials and police (Pearce, 2020).
- Environmental Investigation Agency (EIA) (2019). BAN-BOOZLED How corruption and collusion fuel illegal rosewood trade in Ghana.
- Ghenvironment.org (2021). The government sued over continuous issuance of “Special Permits” as timber rights contrary to the law.
- Joint monitoring and review mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 and 15 May, 2019, Accra.
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- My Joy Online (2019). Government Illegally under Declaring Rosewood Export to China, New Study.
- Okeke, C.C. (2019). $17bn annual loss: African countries move to halt illegal rosewood trade.
- OKKA (2019). Forestry Commission disputes BBC report on rosewood trade.
- Pearce, F. (2020). How Small-Scale Loggers can Help Save Africa’s Tropical Forests. Yale Environment 360. Yale E360. October 22, 2020. Published at the Yale School of the Environment [Online].
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Yoda, A. S. S, (2021). Rosewood trafficking worsens in Ghana, EIA releases shocking data for December 2020 exportation to China. 15 February 2021. Ghenvironmnet.org.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
Receive copy of and verify that salvage permits are not issued for banned species or misused to harvest banned species:
- Salvage permits shall be issued through application to the Chief Executive of the Forestry Commission;
- Verify that species specified in the terms of permits are not misrepresented or changed, and that these species are not on the list of banned/restricted species;
- Verify that harvesting requirements are set out in the permit conditions, including volumes to be salvaged, duration and location of the salvage. The location and duration of salvaging shall be verified with supply chain documentation.
Timber harvesting permits in Ghana are granted primarily through the award of:
• Small Scale and Large-Scale Timber utilisation contracts (TUC) (Act 547, Act 617 and LI 2254) by the Minister of the Ministry of Lands and Natural Resources (MLNR), acting on the recommendation of the Forestry Commission. TUC agreements shall be ratified by the Parliament of Ghana (ACT 547). TUC is considered concessions, and the allocation of TUCs are covered under sub-category 1.2.
Apart from TUCs, the Chief Executive, upon recommendations from the FC, and following provisions made in LI 2254, may also grant administrative harvest permits, such as:
• Salvage permits: for abandoned logs or forest areas undergoing developments. For example, farmlands or areas undergoing settlement expansion or road construction (Regulation 28 and 29, LI 2254).
• Entry permit: for plantations in forest reserves managed by the Forestry Commission. The grant of entry permit follows a bidding process and evaluation of bids by the Timber Right Evaluation Committee of the Forestry Commission.
• Timber Utilisation Permit (TUP) grants permission to use a specific number of trees in an area not subject to a TUC for social or community use purposes. See 1.15. Timber from TUP cannot be used for commercial purposes.
The harvesting regulations in Ghana stipulate that the Contactor or TUC holder should hold a valid timber harvesting permit (in the form of TUCs, entry permits or salvage permits) at the time of logging.
For any Defined Forest Area (DFA) for which harvesting permits are granted, a map delimiting the boundary is required to be prepared by the Forest Services Division (FSD) of FC. The whole DFA is required to be divided into felling coupes or blocks. The felling coupes or blocks are sub-divided into smaller harvesting units (e.g. compartments). A schedule listing the order in which the coupes/blocks and the sub-divisions are to be logged prepared by the TUC holder and is vetted and endorsed by the Resource Management Support Centre (RMSC) of the FC. For each harvesting unit, pre-harvest inspections (stock survey or pre-survey inspections) must be conducted, and the survey results fed into the yield allocation process. An independent team from the FSD verifies the pre-inspection survey. The FSD prepares a list of individual trees for harvesting (a yield summary or yield marking in the case of off-reserve areas) and a yield map (for forest reserve operations). The yield summary, map (with pre-inspection data), and a logging plan (completed by the TUC holder) are submitted to the RSMC for vetting. These documents are vetted against the requirements of MoP Section D. It is only after this elaborate process that the yield summary (or yield marking in off forest reserve areas), logging plan and yield map can be approved and released to the TUC holder for harvesting to commence. The TUC holder must obtain approval for the trees or volume to be harvested (including a permit for restricted species) by an application through the Regional Forest Manager and to hold a valid property mark.
For non-TUC areas, salvage and entry permits are obtained through an application to the Chief Executive of the FC and do not require parliamentary approval. Harvesting requirements are set out in the permit conditions, including volumes to be salvaged, duration and location of the salvage.
- Approved harvesting schedule/blocking or coupes delineation
- Approved yield/markings
- Concession map
- Entry permit or released letter issued by the FSD Forest District
- Logging plan
- Pre-harvest compartment inspections/ field inspection report for salvage permits
- Valid property mark
- Manual of Procedures (MoPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547 and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and are statutory guidance documents for forest management in Ghana).
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
A report produced by the Forest Governance Learning Group and Civic Response in 2013 concluded that from 2003 to 2012, a total loss in real revenue of $16 million was recorded due to the Forestry Commission not adjusting stumpage to the applicable dollar value as contained in the Fifth schedule of LI 2254. However, already in 2016, it was found that the Forestry Commission had made progress in reviewing the stumpage rates and estimating the potential stumpage rates and corresponding SRAs before logging commenced. Copies of these estimates are available at the various Forest Services Division offices (expert consultation conducted by NEPCon, 2016). As of December 2020, no newer research was done by CSOs on the matter.
The payment of timber rights fees (TRF), a key issue related to royalties and harvesting fees, has been resolved. The TRF is about the conversion of leases to TUCs. Timber rights holders and the Forestry Commission have resolved their differences, which paved the way for companies to submit their conversion applications for processing. Unlike the lease conversion process, which ends at parliamentary ratification, the TRF payment is completed within the administrative process. It is therefore low risk given the level of progress achieved so far.
Expert consultation conducted by NEPCon (Now Preferred by Nature) in 2016 showed that payment agreed under Social Responsibility Agreements (SRAs) were sometimes violated by some timber contractors. However, most contractors provided additional support to the communities than only the legally required 5% of stumpage fee. Communities can ensure they receive the due amount if they have information on stumpage value. The information on the actual volumes of timber extracted is the basis for calculating royalties and SRAs available at the FC and its district offices (FSD) located within or near the forest areas. Landowners can obtain this information to verify the appropriate revenue independently. Most companies employ forest operations workers from the forest fringe communities, and some of these workers also have access to extracted volumes. They are sometimes included in SRA committees in the communities. The service charter of the Forestry Commission identifies reports and publication of materials as the main tool for communicating with the public. However, the official redistribution figures are usually published a year in arrears.
SRA and stumpage information delivery to local communities has improved with the involvement of civil society organisations in awareness-raising and establishment of SRA committees in some forest fringe communities. Activities and programmes on the implementation of the VPA have also contributed to an increase in the awareness of communities and improved access to information. The Resource Management Support Centre of the Forestry Commission prepares estimates of potential stumpage and corresponding SRAs and timber rights operators to pay SRA in advance before the logging begins. These estimates are available at the Forest Services Division offices and are accessible by communities and other stakeholders. Continuous audits carried out by the Timber Validation Division is improving the system. Royalty disbursement has improved (expert consultation conducted by NEPCon, 2016). A new template has been developed for monthly reporting on SRA implementation in the district offices of the Forestry Commission. The Resource Management Support Centre (RMSC) of the Forestry Commission has (in collaboration with some Civil Society Organisations) developed a compliance checklist to assist the Forestry Commission in monitoring compliance with the due process in the SRA negotiation and implementation (Joint Monitoring and Review Mechanism, 8th Session, March 2016). The Forestry Commission’s Guidelines for Social Responsibility Agreement (Forestry Commission, 2017) contains the SRA requirements, processes, and procedures, including a template for SRA and GhLAS Social Responsibility Agreement Checklist (Osei, January 2022).
- Auditor general reports, 2015-2018
- Forestry Commission (2017). Guidelines for Social Responsibility Agreement. Resource Management Support Centre, Collaborative Resource Management Department. August 2017.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d). Stumpage disbursement procedure published by the Forestry Commission.
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). Quarterly stumpage disbursement published by the Forestry Commission.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Royalties and harvesting fees in Ghana include:
1) Timber right fee; (TUCs)
2) Contract area rent; (TUCs)
3) Stumpage fee; (TUCs and salvage permits)
4) Social responsibility agreement (TUCs and Salvage permits).
Timber right fees are paid to the Forestry Commission after the award of harvesting rights and before harvesting commences. Contract area rent is paid annually on a per hectare basis over the area of timber rights. Stumpage fees are paid on the tree by tree basis for each company harvest tree.
Social Responsibility Agreement (SRA) is a social tax that a timber company pays to support the development of local communities around its TUC area. The monetary value of the support is 5% of the stumpage paid in respect of trees harvested within a defined forest area. Small scale and large-scale TUC permits in both natural forests and plantations, and salvage permits require SRAs (LI 2254, Section 3 (e) of Act 547; Sections 29(5), 17(11) b and 20(1)b).
- Approved yield/markings
- Contract area rent
- FC receipts of stumpage/bill payment
- FC stumpage/services bills
- Operator FC statement account
- SRA payment records
- Timber right payment
- Social Responsibility Agreement (SRA) and payment records
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). Quarterly stumpage disbursement published by the Forestry Commission.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
The Trees and Timber (Amendment) Act 1994 (Act 493) contains fees, fines, and export levies in the forestry sector. Sections 1 – 3 of this Act reviewed the fees and fines upwards, whereas Section 4 introduced an export levy for air-dried lumber. All levies payable under Section 4 are paid to the Forest Products Inspection Bureau (now Timber Industry Development Division (TIDD)) at the time of the export of the timber (Section 4 15B (2)). Value Added Tax Act, 2013 imposes valued added tax and defines the persons and businesses liable to pay tax. The Value Added Tax Act was amended in 2017, but amendments did not apply to the forestry sector.
- Export levy receipts/letters of credit/bank advice.
- GRA tax clearance certificate
The tax laws are well enforced by the Ghana Revenue Authority (GRA). The GRA monitors the tax payment of companies using the TIN numbers. The GRA also conducts documentary and field (office to office) audits, resulting in increased revenue collection and reduced tax default by limited liability companies in Ghana (expert consultation conducted by NEPCon, 2016). A review of a sample of FSC audit summaries of various companies in Ghana from 2020 shows this requirement is met.
- Ghana Revenue Authority (n.d.). Domestic Taxes (Tax Information).
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Oxford Business Group. A new look at income taxation in Ghana.
- PWC (2021). Navigating Taxation 2021 Ghana Tax Facts and Figures: 2021 PricewaterhouseCoopers (Ghana) Limited.
- Sunstex Company Limited., November 2020:
- Taxpayers Identification Numbering System, 2002 (Act 632) (outlines the requirements for registration of Tax Codes and Certificates from the Ghana Revenue Authority).
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Domestic taxes are administered by the Domestic Tax Revenue Division (DTRD) of the Ghana Revenue Authority (GRA). The relevant income taxes (Income Tax Act, Act 896 section 1) administered by the DTRD are Corporate Tax. This is the tax paid by companies on their profits in the year. The tax rate for companies in the forest sector is 25%.
Free zone companies licensed under the Free zone Act, 1995 (Act 504) are exempted from the payment of income tax on profits for the first 10 years [Act 896, sixth schedule, section 134, 9(1)].
The GRA uses a taxpayer identification numbering (TIN) system to identify and track taxpayers (Act 632).
- GRA tax clearance certificate
- Ghana Revenue Authority (GRA) Tax Clearance Certificate
Much of the illegal actions on the ground is carried out by illegal operators, who do not observe the harvesting regulations, such as no logging in buffer zones; protection of some species; and quantity of trees removed per hectare that is set out in the Logging Manual and Key Standards for Logging in the High Forest Zone at all times. These operators operate illegally, without a permit and do not have the requisite documents to trade legally. The FC and its divisions, such as FSD and RMSC, have the task force to check illegal activities. However, this level of illegal harvesting is only traded on the domestic market and cannot enter the export market. The introduction of the Domestic Timber Inspection Certificate (DoTIC) and the sustained monitoring by the FSD taskforces are making it less economical and unsustainable for illegal operators for the domestic market. In spite of this progress, more work needs to be done as there is still illegal timber on the domestic market (Osei, January 2022).
The Forest Services Division of the FC monitors the harvesting operations of TUC holders. It carries out 100% post-felling checks and checks for compliance with logging requirements before a compartment closure certificate is issued. These certificates are available at the FSD office that oversees the harvesting area. Implementing the Ghana Legality Assurance System (especially the Wood Tracking System, which verts all required information inputs and outputs including reconciliation of volumes and flags inconsistences) makes it impossible to get export permit where descripences are flagged (Osei, January 2022). The continuous monitoring by the TVD and the Independent Monitor (IM) are helping to improve the system to check illegal harvest. Timber exports volumes and related documentary evidence are reconciled in the centralised Wood Tracking System (WTS). Any discrepancies are flagged for the necessary legal regularisation before export permits can be issued. Post-felling checks are required for all harvests regardless if destined for export or the domestic market.
- Bosu, D. (2014). Rosewood: Most expensive, fastest selling commodity in Ghana today.
- Expert consultation: Joseph Osei, Resourcetrust
- Forestry Commission of Ghana (n.d.). Forestry Commission ravishes Global Witness Report (Forestry Commission’s response to Global Witness Report on Logging permits issuance in Ghana).
- Hoare, A. (2014). Illegal Logging and Related Trade: The Response in Ghana. A Chatham House Assessment.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
The Forest Services Division of the Forestry Commission has prepared a logging manual and key standards for logging in the High Forest Zone (HFZ) of Ghana to guide the harvesting operations of timber contractors as required under Section 10 of the Timber Resources Management Act (Act 547) [as amended by the Forestry Commission Act, 1999 (Act 571), Sch. to s.35(2)].
Some forest reserves have been zoned into production and protection areas. The guideline provides that logging is permitted only in the timber production areas. Harvesting is selective of individual trees in natural forests and clear-felling in even-aged commercial plantations (both on- and off-reserve). Minimum felling girth limits are set for individual species, and it is an offence to fell trees below their minimum girth limits. The logging manual gives detailed prescriptions to include the prohibition of harvesting in riparian buffer zones, steep slopes, swampy sites, etc. The manual prescribes directional felling at all possible situations and gives specifications for road, skid tracks, log yard constructions, and maintenance.
- Approved harvesting schedule/blocking or coupes delineation
- Approved logging plan
- Compartment closure certificate
- Log information form (LIF)
- Tree information form (TIF)
- Plantation or reforestation plan
Illegal logging of protected species: following the ban on the harvesting, transport, processing, export, or sale of rosewood (Pterocarpus Erinaceus), the Forestry Commission granted Salvage Permits to 13 companies to remove the already harvested rosewood. However, these companies may have abused their permits at the time (NEPCon expert consultation, 2016). There have also been recent reports of illegal harvesting and trade in rosewood (Pterocarpus erinaceus) (EIA, 2019, EIA 2020) despite a ban placed on the harvest and trade for the fifth time in Ghana in March 2019. Rosewood has also been listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) since January 2017. Rosewood occurs in the Savannah Regions of Ghana, protected from timber concessions. Rosewood harvesting thus mostly comes from off-forest reserves.
According to Nature and Development Foundation, there are continued sales of Pericopsis Elata (also known as Afromosia) on the local market without accompanied licenses (Appiah and Bediako, 2020). Pericopsis elata is a scarlet star species listed as a restricted species.
Illegal logging in protected areas: illegal logging is a threat to protected areas and is documented in several studies/reports. A study of six forest reserves by Derkyi and Dietz (2014) showed that the issue was connected to illegal chainsaw milling offences, mainly in forest and off-forest reserves. Also, a Mongabay investigation showed that illegal logging in forest reserves are commonplace. While the FC did seize some illegally logged timber, a chainsaw operator also informed Mongabay that members of the FC task force to prevent illegal logging were routinely bribed, making it possible to transport in the daytime and to pass the checkpoints established by the FC (Yoda, 2019). Afriyie (2021) reported that logging had taken place in protected areas due to illegal settlements depending on the forest resources for livelihood, high economic gains and corruption between perpetrators and wildlife officials (Afriyie et al., 2021).
In 2019, EIA also reported that encroachment into protected areas takes place to harvest rosewood (EIA, 2019), and Afriyie (2021) supports that the demand for rosewood is a driver for illegal logging in the protected areas and that China is a key market driving this demand for rosewood (Afriyie et al., 2021).
- Afriyie, J. O., Asare, M. O., Danquah, E., and Pavla, H. (2021). Assessing the Management Effectiveness of three Protected Areas in Ghana. Conservation & Society, 2021, Vol. 19, No. 1 (2021), pp. 13-24. Published by: Ashoka Trust for Research in Ecology and the Environment and Wolters Kluwer India Pvt. Ltd. Pp. 17-20.
- Appiah, M. & Bediako, D. B., (2020). Illegal logging driving Afromosia to extinction in Ghana. Nature & Development Foundation.
- Convention on Biological Diversity (n.d.). List of Globally Significant Biodiversity Areas (GSBA). Convention on Biological Biodiversity. Clearing House Mechanism of Ghana.
- Daily Trust (2019). $17bn Annual Loss: African Countries Move to Halt Illegal Rosewood Trade.
- EIA (2019). Ban-Boozled How Corruption and Collusion Fuel Illegal Rosewood Trade in Ghana. Environmental Investigation Agency.
- EIA (2020). Seizing the Moment: How Ghana Can End the Destruction of the Illegal Rosewood Trade Now. Blog Posts. Environmental Investigation Agency.
- FAO (N.Y). 1. Introduction & status of the Forestry Sector in Ghana. FOSA Country Report – Ghana. Forestry Outlook Study for Africa (FOSA).
- FAO Timberlex (2021). Ghana. Database. Page last modified 2021-07-13. Food and Agriculture Organization of the United Nations.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management).
- Ghana Web (2019). Gra Intercepts 5 Container Loads Of Rosewood Headed For Tema Port.
- GhanaWeb (2013). Government bans Rosewood Timber Exportation. GhanaWeb.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- My Joy Online (2019). Forestry Commission Disputes BBC Report on Rosewood Trade Source: Ghana.
- Sunstex Company Limited., November 2020:
- The FLEGT Newsletter, 4th Edition, March 2016, Page 3.
- The Forestry Commission (2013). Draft Ghana Forest Plantation Strategy: 2015-2040
- The Ministry of Land and Natural Resources (2012). Ghana Forest and Wildlife Policy.
- The Ministry of Lands and Forestry (1998). Timber Resources Management Regulations.
- Yoda, A. S. S., (2019). ‘We have cut them all’: Ghana struggles to protect its last old-growth forests.
- Natural forest
Protected areas
Ghana established an extensive forest estate in the high forest zone in the 1920s, consisting of 1.63 million hectares of forest reserves. These reserves include permanently protected areas (352,500 ha of national parks and globally significant biodiversity areas of 117,322 ha). The remaining lands in the off-forest reserve areas are primarily farmlands.
The FC is responsible for the planning of harvesting and monitoring forest conditions (Section 2b of the Forestry Commission Act 1999 (Act 571)). The FC’s Manual of Operations (MOPs) sections A-F operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254).
The strategic planning sets objectives to guide forest resource management in the long term and delineate the forest reserve areas into production and protective zones. Timber felling rights are awarded in only production zones.
No logging operation, including felling, skidding, road and log yard construction, is permitted in a Protected Area. Such areas include sacred groves, hill sanctuaries, provenance protection areas, convalescent areas, special biological protection areas, and swamps. Protected Areas must be marked on the TUC Operational Plan and the Annual Logging Plan at the appropriate scales. The Contractor is responsible for ensuring that the Logging Supervisor is familiar with the location of all Protected Areas that fall within or adjacent to the Contract Area (Revised Logging Manual, section 3.2-art. 7) (TimberLex, 2021).
Protected species (Star ratings and restricted species)
Several tree species are put under Ghana’s conservation star ratings for conservation purposes. The star rating system was designed to assign each species to a category denoting its conservation priority and is based on an extensive botanical survey of the forest estate completed by the Forest Services Division in 1992. Star values can help forest managers identify genetic hotspots throughout the high forest zone. The numeric value related to the hotspot is known as its Genetic Heat Index (GHI). Forest reserves or portions of reserves with a high Genetic Heat Index (greater than 150) are designated as Special Biological Protection Areas and are permanently removed from production (FAO, N.Y).
Revised Logging Manual. Section 3.2 – Art.6 Protected species. Any tree species classified as Black Star cannot be felled under any circumstances. Any species classified as a Special Permit Species cannot be felled unless this is specifically authorised by a permit from the District Forest Manager for road or log yard construction. Black Star and Special Permit Species are listed in Appendix 6, which the Forestry Department may amend from time to time.
Black Star species are the highest priority for protection, followed by Gold, Blue, Scarlet, Red, Pink and Green Stars, respectively (MoP, Instruction Sheet A2.3)
The monitoring requirement specified in Section 3 (6) of MOP F prescribes that the FSD should ensure that no black star species or restricted species are felled.
Schedule 8 of the Timber Resource Management and Licensing Regulations (2017), LI 2254, lists the timber species restricted for felling. These species can only be felled with a restricted species permit issued by the FC with the approval of the Minister (LI 2254, Art 74).
Protected species belonging to the classes “Restricted Timber Species” and “Black Star” are identified during the stock survey but not measured (Mop, Instruction Sheet C4.1, 2.4). Black Star species shall be protected with an exclusion zone of 100m radius around the tree location. MoP Introduction sheet No D2, 7.3 lists the current Black star species. In contrast, Introduction sheet MoP, Instruction Sheet D4, 4.2 lists Scarlet species (species threatened in Ghana by over-exploitation) and the approach for yield calculation. Permits for issuing Scarlet species can be issued.
Ghana has ratified the CITES Convention. Pericopsis Elata (Afromosia) and Pterocarpus Erinaceus (rosewood) are found in Appendix II.
Ghana’s Cabinet introduced a ban, effective from 1st January 2014 (temporary ban introduced in 2012), on the harvesting and exporting of Pterocarpus Erinaceus (rosewood) until further notice.
- Approved compartment logging plan
- Convention on Biological Diversity, 1975.
- Forest Plantation Development Fund Act, 2000 (Act 583), 2000.
- Forest Protection (Amendment) Act 2002 (Act 624), 2002.
- Forest Protection Decree, 1974, 1974.
- Ghana Forest and Wildlife Policy (2012)., 2012.
- Manuals of Procedure for forest Resource Management Planning in the High Forest Zone of Ghana.
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
- Trees and Timber Amendment Act 1994 (Act 493), 1974.
Illegal logging of protected species: following the ban on the harvesting, transport, processing, export, or sale of rosewood (Pterocarpus Erinaceus), the Forestry Commission granted Salvage Permits to 13 companies to remove the already harvested rosewood. However, these companies may have abused their permits at the time (NEPCon expert consultation, 2016). There have also been recent reports of illegal harvesting and trade in rosewood (Pterocarpus erinaceus) (EIA, 2019, EIA 2020) despite a ban placed on the harvest and trade for the fifth time in Ghana in March 2019. Rosewood has also been listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) since January 2017. Rosewood occurs in the Savannah Regions of Ghana, protected from timber concessions. Rosewood harvesting thus mostly comes from off-forest reserves.
According to Nature and Development Foundation, there are continued sales of Pericopsis Elata (also known as Afromosia) on the local market without accompanied licenses (Appiah and Bediako, 2020). Pericopsis elata is a scarlet star species listed as a restricted species.
Illegal logging in protected areas: illegal logging is a threat to protected areas and is documented in several studies/reports. A study of six forest reserves by Derkyi and Dietz (2014) showed that the issue was connected to illegal chainsaw milling offences, mainly in forest and off-forest reserves. Also, a Mongabay investigation showed that illegal logging in forest reserves are commonplace. While the FC did seize some illegally logged timber, a chainsaw operator also informed Mongabay that members of the FC task force to prevent illegal logging were routinely bribed, making it possible to transport in the daytime and to pass the checkpoints established by the FC (Yoda, 2019). Afriyie (2021) reported that logging had taken place in protected areas due to illegal settlements depending on the forest resources for livelihood, high economic gains and corruption between perpetrators and wildlife officials (Afriyie et al., 2021).
In 2019, EIA also reported that encroachment into protected areas takes place to harvest rosewood (EIA, 2019), and Afriyie (2021) supports that the demand for rosewood is a driver for illegal logging in the protected areas and that China is a key market driving this demand for rosewood (Afriyie et al., 2021).
- Afriyie, J. O., Asare, M. O., Danquah, E., and Pavla, H. (2021). Assessing the Management Effectiveness of three Protected Areas in Ghana. Conservation & Society, 2021, Vol. 19, No. 1 (2021), pp. 13-24. Published by: Ashoka Trust for Research in Ecology and the Environment and Wolters Kluwer India Pvt. Ltd. Pp. 17-20.
- Appiah, M. & Bediako, D. B., (2020). Illegal logging driving Afromosia to extinction in Ghana. Nature & Development Foundation.
- Convention on Biological Diversity (n.d.). List of Globally Significant Biodiversity Areas (GSBA). Convention on Biological Biodiversity. Clearing House Mechanism of Ghana.
- Daily Trust (2019). $17bn Annual Loss: African Countries Move to Halt Illegal Rosewood Trade.
- EIA (2019). Ban-Boozled How Corruption and Collusion Fuel Illegal Rosewood Trade in Ghana. Environmental Investigation Agency.
- EIA (2020). Seizing the Moment: How Ghana Can End the Destruction of the Illegal Rosewood Trade Now. Blog Posts. Environmental Investigation Agency.
- FAO (N.Y). 1. Introduction & status of the Forestry Sector in Ghana. FOSA Country Report – Ghana. Forestry Outlook Study for Africa (FOSA).
- FAO Timberlex (2021). Ghana. Database. Page last modified 2021-07-13. Food and Agriculture Organization of the United Nations.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management).
- Ghana Web (2019). Gra Intercepts 5 Container Loads Of Rosewood Headed For Tema Port.
- GhanaWeb (2013). Government bans Rosewood Timber Exportation. GhanaWeb.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- My Joy Online (2019). Forestry Commission Disputes BBC Report on Rosewood Trade Source: Ghana.
- Sunstex Company Limited., November 2020:
- The FLEGT Newsletter, 4th Edition, March 2016, Page 3.
- The Forestry Commission (2013). Draft Ghana Forest Plantation Strategy: 2015-2040
- The Ministry of Land and Natural Resources (2012). Ghana Forest and Wildlife Policy.
- The Ministry of Lands and Forestry (1998). Timber Resources Management Regulations.
- Yoda, A. S. S., (2019). ‘We have cut them all’: Ghana struggles to protect its last old-growth forests.
- Natural forest
Protected areas
Ghana established an extensive forest estate in the high forest zone in the 1920s, consisting of 1.63 million hectares of forest reserves. These reserves include permanently protected areas (352,500 ha of national parks and globally significant biodiversity areas of 117,322 ha). The remaining lands in the off-forest reserve areas are primarily farmlands.
The FC is responsible for the planning of harvesting and monitoring forest conditions (Section 2b of the Forestry Commission Act 1999 (Act 571)). The FC’s Manual of Operations (MOPs) sections A-F operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254).
The strategic planning sets objectives to guide forest resource management in the long term and delineate the forest reserve areas into production and protective zones. Timber felling rights are awarded in only production zones.
No logging operation, including felling, skidding, road and log yard construction, is permitted in a Protected Area. Such areas include sacred groves, hill sanctuaries, provenance protection areas, convalescent areas, special biological protection areas, and swamps. Protected Areas must be marked on the TUC Operational Plan and the Annual Logging Plan at the appropriate scales. The Contractor is responsible for ensuring that the Logging Supervisor is familiar with the location of all Protected Areas that fall within or adjacent to the Contract Area (Revised Logging Manual, section 3.2-art. 7) (TimberLex, 2021).
Protected species (Star ratings and restricted species)
Several tree species are put under Ghana’s conservation star ratings for conservation purposes. The star rating system was designed to assign each species to a category denoting its conservation priority and is based on an extensive botanical survey of the forest estate completed by the Forest Services Division in 1992. Star values can help forest managers identify genetic hotspots throughout the high forest zone. The numeric value related to the hotspot is known as its Genetic Heat Index (GHI). Forest reserves or portions of reserves with a high Genetic Heat Index (greater than 150) are designated as Special Biological Protection Areas and are permanently removed from production (FAO, N.Y).
Revised Logging Manual. Section 3.2 – Art.6 Protected species. Any tree species classified as Black Star cannot be felled under any circumstances. Any species classified as a Special Permit Species cannot be felled unless this is specifically authorised by a permit from the District Forest Manager for road or log yard construction. Black Star and Special Permit Species are listed in Appendix 6, which the Forestry Department may amend from time to time.
Black Star species are the highest priority for protection, followed by Gold, Blue, Scarlet, Red, Pink and Green Stars, respectively (MoP, Instruction Sheet A2.3)
The monitoring requirement specified in Section 3 (6) of MOP F prescribes that the FSD should ensure that no black star species or restricted species are felled.
Schedule 8 of the Timber Resource Management and Licensing Regulations (2017), LI 2254, lists the timber species restricted for felling. These species can only be felled with a restricted species permit issued by the FC with the approval of the Minister (LI 2254, Art 74).
Protected species belonging to the classes “Restricted Timber Species” and “Black Star” are identified during the stock survey but not measured (Mop, Instruction Sheet C4.1, 2.4). Black Star species shall be protected with an exclusion zone of 100m radius around the tree location. MoP Introduction sheet No D2, 7.3 lists the current Black star species. In contrast, Introduction sheet MoP, Instruction Sheet D4, 4.2 lists Scarlet species (species threatened in Ghana by over-exploitation) and the approach for yield calculation. Permits for issuing Scarlet species can be issued.
Ghana has ratified the CITES Convention. Pericopsis Elata (Afromosia) and Pterocarpus Erinaceus (rosewood) are found in Appendix II.
Ghana’s Cabinet introduced a ban, effective from 1st January 2014 (temporary ban introduced in 2012), on the harvesting and exporting of Pterocarpus Erinaceus (rosewood) until further notice.
- Approved compartment logging plan
- Convention on Biological Diversity, 1975.
- Forest Plantation Development Fund Act, 2000 (Act 583), 2000.
- Forest Protection (Amendment) Act 2002 (Act 624), 2002.
- Forest Protection Decree, 1974, 1974.
- Ghana Forest and Wildlife Policy (2012)., 2012.
- Manuals of Procedure for forest Resource Management Planning in the High Forest Zone of Ghana.
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
- Trees and Timber Amendment Act 1994 (Act 493), 1974.
According to most officials at the Forestry Commission, there is an unwritten understanding between FC and EPA that the different levels of forest management planning and operational restrictions, set out in the forest laws, are adequate to safeguard any breaches of other environmental requirements; further, the EPA's environmental requirements can be waived once the forest operator meets the FC's management planning requirements. For example, the EPA’s EIA requirements include restrictions on logging in watershed areas. The Forestry Commission’s coarse grain protection removes watersheds from the timber production areas of the forest reserves, so this EPA requirement is already addressed. For forest plantations inside forest reserves, plantation developers must prepare commercial plantation plans for approval by the Forestry Commission as part of the plantation development application process. This ensures watersheds are identified and protected. The Ministry of Environment, Science and Innovation, in its 2016 Biodiversity strategy, however, reported that the involvement of EPA in EIA in the forest sector has been non-existent. Though the Biodiversity strategy acknowledged that the Forestry Commission has strict environmental regulations concerning forest management, it proposed that the Forestry Commission be allowed to conduct external environmental auditing to strengthen the process. Private plantation developers outside the forest reserves must meet the EPA requirements.
The review of sampled FSC audit summaries in 2020 shows that companies pursuing FSC certification are making efforts to be provided with environmental permits from the Environmental Protection Agency (FSC audit reports). Companies usually have an EPA permit for their factory or processing operations but not forest operations.
Note: While the EPA requirements are clear, so far, it has not been applied in normal forestry operations (i.e., environmental permits are not issued, and EIA are not conducted). This is mainly because the forestry planning and management requirements are considered sufficient to meet the EPA requirement. There is, therefore, an unwritten agreement between the FC and EPA. Ghana’s VPA legal timber definition also does not include EIA. Ghana’s legal definition of timber under the VPA does not include this provision.
- Bosu, D. (2014). Rosewood: Most expensive, fastest selling commodity in Ghana today.
- Forestry Commission of Ghana. Logging Manual.
- Hoare, A. (2014). Illegal Logging and Related Trade: The Response in Ghana. A Chatham House Assessment.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Environment, Science, Technology, and Innovation. National Biodiversity Strategy and Action Plan, November 2016. Section 2.3.1.2: Weak Institutional Capacities.
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
The Logging Manual (Section 3.2, subsections 1 – 7) prescribes environmental standards as guidance (on logging activities in riparian areas, fire precautions, restricted/protected species and protected areas) to the timber contractors on the planning and operational aspects of timber harvesting. He provides basic information on good working practices.
Section 3 of Schedule 1 (Regulation 1(1)) of the Environmental Assessment Regulation, 1999 prescribes undertakings that require registration and an environmental permit from the Environmental Protection Agency (EPA). Relevant undertakings include the management of forested land for the primary purpose of harvesting timber in a contract area (logging) and forestry services such as pesticide application and the introduction of exotic species (animals, plants or microbial agents). Applications for the environmental permit are required to detail:
i. The location and size of the area;
ii. Technology intended to be used;
iii. Environmental, health and safety impacts of the undertaking;
iv. A clear commitment to avoid any adverse environmental impacts which the undertaking could avoid;
v. A clear commitment to address unavoidable environmental, health and safety impacts and to implement necessary mitigation steps ;
vi. The concerns of the general public, if any, and in particular concerns of immediate residents; and
vii. Alternatives to the establishment of the undertaking.
The EPA screens the application under regulation 5 and issues a report on the application which states whether the application is approved or not, or whether the submission of (a) a preliminary environment report or (b) an environmental impact statement is required.
An application is approved at the initial assessment; the EPA registers the undertaking and issues an environmental permit.
Where an application is rejected, the undertaking cannot commence. It is already in existence and discontinued.
- Approved yield/markings
- Blocking report (for submerged forests)
- Compartment closure certificate
- Environmental impact assessment
- Environmental management report
- Environmental permit
- EPA certificate of registration
- Field observations by audit team
- FSD felling inspection report
- List of infractions raised by FSD in offence register
- Logging plan
- RMSC post-harvest audit report
- Environmental Assessment Regulation. 1999. (LI 1652), 1999.
- Environmental Assessment (Amendment) Regulations. 2002. (LI 1703), 2002.
- Logging manual.
- Riparian Buffer zone Policy for Managing Freshwater Bodies in Ghana, 2011.
The Timber Validation Department audit companies to check they comply with health and safety requirements and verify that companies have the required annual health and safety certificate from the Factories Inspectorate Division of the Ministry of Employment and Labour Relations (EU FLEGT Facility, 2018). However, factory inspectors help companies to meet safety requirements in the factories but not within forest operations.
In Arts 2021 auditing and enforcement practices by the FC are covered. The study refers to only one Forest Reserve (multiple forest operators) but provides an indication of compliance level. While it was generally found that that the forest operations where in compliance with the requirements related to forest management and harvesting, health and safety was typically violated (regardless of company size), with a high degree of staff not using PPE. When violations were detected, an educational lecture was given to the staff, but with no further consequences for the forest operations, which were allowed to continue as before. The auditors and the local FC department interpreted the lack of PPE as a non-compliance, but not as a “real” illegality, irrespective of the law (Arts et al., 2021).
- Arts, B.; Heukels, B. and Turnhout, E. (2021). Tracing timber legality in practice: The case of Ghana and the EU. Forest policy and Economics 130 (2021) 102532). Elsevier.
- EU FLEGT Facility (2018). Drive for legal timber boosts worker safety in Ghana. EFI.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Registration can be verified through;
- Records from the timber operator to demonstrate that all employees are registered under the NHIS, or;
- Identity cards for registered persons under the NHIS shall be in place for all staff (issued by NHIA).
Verify the following in the field:
- employees are provided a safe working environment and personal protective equipment (PPE);
- PPEs are not paid by workers;
- PPEs are being used in the filed;
- appropriate health facilities are available to employees and contractors.
Labour regulations, 2007 (LI 1833), Sections 18 to 20 and Sections 25 to 28; Labour Act, 2003 (Act 651): Part XV: 118-121; and 30 of Act 328 (factories, offices and shops act, 1970) provides for occupational safety and health and medical examination of workers at work. Section 75 of Act 328 provides the powers of inspectors to enter and inspect a factory at any time. As part of the requirements (Section 118 to 121 of the Labour Act), the employer is responsible to ensure workers are provided with satisfactory, safe and healthy conditions. Workers are obliged to use safety appliances, fire-fighting equipment and PPEs provided by the employer; and report imminent hazards to employer. Employers are required to report occupational accidents and diseases to the appropriate government authority. Supply of personnel protection equipment (PPE) and training of workers on safe felling practice, and observation of safety requirements in the timber industry.
In the absence of specific health and safety requirements in the forest sector in Ghana, the ILO Code of Practice on Safety and Health in Forestry Work (as set out in Table 1, page 37) is used as the minimum requirement for Health and Safety. Employers are required by the National Health Insurance Authority Act, 2012 (Act 852: Part II sections 12-13) to register their employees on the National Health Insurance Scheme (NHIS).
Employers are required by the Pesticides Control and Management Act, 1996 (Act 528: Section 21) to provide workers with the means to protect themselves from injury or hazards when handling pesticides. In case of injury, accident or death of employees, the Workmen's Compensation Law (PNDC law 187) provides the procedure for compensation.
- Industrial hygiene survey report (from Department of factory inspectorate or their sub-contracted agencies)
- Records of health and safety training
- Records of payment of work-related injury compensation
- Records of purchase and provision of personal protective equipment
- Workers registration on the National Health Insurance Scheme (NHIS)
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour Act, 2003 (Act 651), 2003.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- Workmen's compensation Law (PNDC law 187) (outlines compensation procedures for injury, accident, or death of persons under employment).
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Verify that the Collective Bargaining Agreement (CBA) is signed between the employer and the local workers' union). The CBA specifies the condition of employment (including employer and employee responsibilities, wages, and leave) and serves as the basis of employer-employee relations. Employees' contract and condition of service should be consistent with the regulations of the CBA.
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA approved trustee.
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA approved trustee.
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA approved trustee.
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
One key finding from the Joint Assessment of the Ghana VPA in 2019 was the inconsistent implementation of the SRA. This is, however, not a legal compliance issue but an efficiency issue resulting from the different community structures and traditions.
Compensation paid by loggers to farmers/landowners for crop damage due to logging in off reserve areas is usually inadequate. The Ministry of Food and Agriculture determines the rates payable per type of crop, but the rates are usually not followed (expert consultation conducted by NEPCon, 2016). Usually, there is a bargain between the property owner and timber contractor; either party could lose (expert consultation conducted by NEPCon, 2016). The joint assessment of the Ghana VPA in 2019 also found inconsistences in the calculation of compensation for damaged crops by loggers and recommended the basis for calculating compensation for damaged crops be included in the SRA. This again is not a compliance issue but a matter of inefficient implementation of compensation to farmers for damaged crops by loggers.
- Forest Governance Learning Group (FGLG)/CIVIC Response (2013). Real loss in stumpage values in Ghana's Forest Sector 2003-2012 (Research on Forest stumpage Value).
- Hoare, A. (2014). Illegal Logging and Related Trade: The Response in Ghana. A Chatham House Assessment.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Joint Monitoring and Review Mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 & 15 May, 2019, Accra
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Quarterly stumpage disbursement published by the Forestry Commission.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Royalties: The 1992 constitution, art 267 (2, 6) stipulates that 10% of the revenue accruing from stool lands (revenue from rents, dues, royalties, revenues or other payments to the Stool lands) shall be paid to the office of the Administrator of Stool Lands to cover administrative expenses; and the remaining revenue shall be disbursed in the following portions; the District Assembly is entitled to 55%, the Stool is entitled to 25%, whereas the traditional authority’s share is 20%.
Social responsibility agreement: direct benefit sharing arrangements between communities and logging companies are in the form of Social Responsibility Agreements (SRAs). Small scale and large-scale TUC permits in both natural forests and plantations, and salvage permits require SRAs (LI 2254, Section 3 (e) of Act 547; Sections 29(5), 17(11) b and 20(1)b). According to the law, the monetary value of the timber rights operator’s contribution to community development should be 5% of the stumpage paid in respect of trees harvested within a defined forest area (LI 2254 (26) 1 and 2). This agreement is arrived at through a consultation process facilitated by the FSD (Instruction Sheet C3.2 of MOP Section C). The District Manager of the FSD defines the boundaries of a TUC area, in consultation with land-owning communities. During the consultation, the purpose of SRA, as part of TUC, is explained and the community proposes the priorities for local development and particular conditions for the future logging company’s operation. These development priorities and conditions are incorporated into a preliminary document called the Timber Operational Specifications (TOS). The TOS, which is included in the advertisement for TUC tenders, forms the basis for negotiations of SRA terms between the timber company that wins the TUC and the appropriate land-owning community or communities. The SRA in effect includes social responsibility requirements, environmental restrictions and code of conduct requirements such as observation of taboo days.
Compensation: farmers and landowners who have property on land in off forest reserve areas suitable for TUC qualify for compensation under the forestry laws. The consent of these landowners must be sought before timber right or TUC is awarded.
- Approved yield/markings
- FC receipts of stumpage/bill payment
- FC stumpage/services bills
- Operator FC statement account
- Proof of payment of compensations for damaged farms and crops
- Proof of payment of SRA proceeds and adherence to signed SRA agreement
- SRA payment records
- Tree information form (TIF)
- Social Responsibility Agreement (SRA) and payment records
Currently, the FC has provided the opportunity for farmers to register the trees they have planted on their farms or naturally growing trees they have nurtured on their farms so they can own the trees (Idh, 2019; World Cocoa Foundation, 2020).
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Section 4(2) of Timber Resources Management (TRM) Act 547 (and Section 2 of amendment Act 617) states timber rights shall not be granted for logging on lands subject to alienation or farmlands without written authorisation of the landowner(s).
Regulations 4, 5 and 6 of LI 2254 requires the Forestry Commission must seek the consent and agreement of landowners before lands (public lands and forest reserves) identified as suitable for timber rights can be administered. Regulation 6 provides the procedure for resolving conflicts and objections by landowners on the grant of timber rights. Manual of Procedures (MOP) C Section 4.2 (forest reserves) and MOP F Section 2.1 (off forest reserves) provides the procedures for the involvement of landowners.
- Landowner and others holding interest in the area written consent
- Landowners written consent (on reserve)
- Timber Operational Specifications (TOS)
- Forest Act 1927, 1927.
- Timber Resources Management Act 1997 (Act 547), 1997.
- Timber Resources Management Amendment Act 2002, (Act 617) (Replaces section 2b to exclude private timber plantations from the award of timber rights., 2002.
- Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254), 2017.
One key finding from the Joint Assessment of the Ghana VPA in 2019 was the inconsistent implementation of the SRA. This is, however, not a legal compliance issue but an efficiency issue resulting from the different community structures and traditions.
Compensation paid by loggers to farmers/landowners for crop damage due to logging in off reserve areas is usually inadequate. The Ministry of Food and Agriculture determines the rates payable per type of crop, but the rates are usually not followed (expert consultation conducted by NEPCon, 2016). Usually, there is a bargain between the property owner and timber contractor; either party could lose (expert consultation conducted by NEPCon, 2016). The joint assessment of the Ghana VPA in 2019 also found inconsistences in the calculation of compensation for damaged crops by loggers and recommended the basis for calculating compensation for damaged crops be included in the SRA. This again is not a compliance issue but a matter of inefficient implementation of compensation to farmers for damaged crops by loggers.
- Forest Governance Learning Group (FGLG)/CIVIC Response (2013). Real loss in stumpage values in Ghana's Forest Sector 2003-2012 (Research on Forest stumpage Value).
- Hoare, A. (2014). Illegal Logging and Related Trade: The Response in Ghana. A Chatham House Assessment.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Joint Monitoring and Review Mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 & 15 May, 2019, Accra
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Quarterly stumpage disbursement published by the Forestry Commission.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Royalties: The 1992 constitution, art 267 (2, 6) stipulates that 10% of the revenue accruing from stool lands (revenue from rents, dues, royalties, revenues or other payments to the Stool lands) shall be paid to the office of the Administrator of Stool Lands to cover administrative expenses; and the remaining revenue shall be disbursed in the following portions; the District Assembly is entitled to 55%, the Stool is entitled to 25%, whereas the traditional authority’s share is 20%.
Social responsibility agreement: direct benefit sharing arrangements between communities and logging companies are in the form of Social Responsibility Agreements (SRAs). Small scale and large-scale TUC permits in both natural forests and plantations, and salvage permits require SRAs (LI 2254, Section 3 (e) of Act 547; Sections 29(5), 17(11) b and 20(1)b). According to the law, the monetary value of the timber rights operator’s contribution to community development should be 5% of the stumpage paid in respect of trees harvested within a defined forest area (LI 2254 (26) 1 and 2). This agreement is arrived at through a consultation process facilitated by the FSD (Instruction Sheet C3.2 of MOP Section C). The District Manager of the FSD defines the boundaries of a TUC area, in consultation with land-owning communities. During the consultation, the purpose of SRA, as part of TUC, is explained and the community proposes the priorities for local development and particular conditions for the future logging company’s operation. These development priorities and conditions are incorporated into a preliminary document called the Timber Operational Specifications (TOS). The TOS, which is included in the advertisement for TUC tenders, forms the basis for negotiations of SRA terms between the timber company that wins the TUC and the appropriate land-owning community or communities. The SRA in effect includes social responsibility requirements, environmental restrictions and code of conduct requirements such as observation of taboo days.
Compensation: farmers and landowners who have property on land in off forest reserve areas suitable for TUC qualify for compensation under the forestry laws. The consent of these landowners must be sought before timber right or TUC is awarded.
- Approved yield/markings
- FC stumpage/services bills
- Operator FC statement account
- Proof of payment of compensations for damaged farms and crops
- Proof of payment of SRA proceeds and adherence to signed SRA agreement
- SRA payment records
- Tree information form (TIF)
- Social Responsibility Agreement (SRA) and payment records
A wood-balance analysis carried out by Hoare in 2014 on Ghana’s timber, compared the legal supply of timber (from official records of harvest and imports) with consumption (based on domestic consumption and exports), this analysis shows a gap between supply and consumption. This gap could be due to under reporting of harvested tree volumes captured on the TIFs. Stock numbers of approved trees are sometimes repeated, in order to harvest more trees outside the yield. This contradicts the procedures in the MOP Section D.
However, this risk is minimized through: enforcement of enumeration check surveys; TIDD volume measurements; regular audits by the TVD; and the Independent Monitor of the GhLAS (JMRM May, 2019). The introduction of the WTS has allowed for volume reconciliation at all levels, as well as the input output volume reconciliation forms, 'introduced at the sawmills, have helped to reduce this risk to insignificant levels.
- Expert consultation: Joseph Osei, Resourcetrust
- Ghana FLEGT VPA (2020).
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission (2013). Draft Ghana Forest Plantation Strategy: 2015-2040
- The Ministry of Land and Natural Resources (2012). Ghana Forest and Wildlife Policy.
- Timber Resource Management Regulations (1998).
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Under sub-category 1.3 the inventory and marking of trees prior to harvesting are covered. After harvesting FSD range supervisor captures the details of each tree felled on a tree information form (TIF). This translates into 100% post-felling check by the range supervisor. The TIF contains information such as the stock survey number, harvested species, and quantity (volume).
For natural forest, the Contractor completes a log information form (LIF) which covers logs produced from each tree based on the TIF. The LIF contains the stock number, species and volumes of logs recovered from the tree. A Log measurement and conveyance certificate (LMCC) is prepared by another FSD Range Supervisor using the information on TIF and LIF. This is to provide assurance that the information provided by the FSD and the contract agree, before logs are trucked from the forest to the processing site or point of sale. The LMCC follow the transport of logs and includes the stock number, species and volumes of logs.
For forest plantations (on- and off-reserve), TIF and LIF are replaced by the Plantation production certificate. A Log measurement and conveyance certificate (LMCC) is issued also for transport of timber from plantations.
Transported logs from both plantations and natural forests are checked at the various check points along highways or mills through species identification, re-measurement of each log volume and quality grading by the Timber Industry Development Division (TIDD). The TIDD also issues various timber products inspection certificates for all processed logs based on species classification, qualities and volumes (TIDD Timber Trade Procedures and Guidelines).
- Approved export contract
- Approved export permit
- Approved yield/markings
- Contract parking list
- FC receipts of stumpage/bill payment
- FC stumpage/services bills
- Log information form (LIF)
- Tree information form (TIF)
- Plantation or reforestation plan
The Ghana Wood Tracking System (GWTS) collects data at critical control points along the supply chain on the status of compliance by operators, with respect to their contractual obligations as required by the contractual requirements. The data sets collected at these control points are reconciled successively with the addition of new data sets in the process chain. On a near real-time bases, the GWTS labels all non-compliance cases as red flags, which may constitute flash points for prompt investigation and verification through field audits by the TVD of FC. If the FLEGT VPA will be implemented in future and, if there are no outstanding Corrective Action Requests, a FLEGT license for export or Domestic Timber Inspection Certificate (DOTIC) for local market will be issued to the operator.
Regular audits by the TVD and the Independent Monitor of the LAS ensure that systems are improved to check compliance. A review of a sample of FSC audit summaries of various companies in Ghana from 2020 did not show any risks with transport of wood.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Manual of Procedures (MOPs) and Revised Logging Manual (operationalises the Timber Resources Management Act 1997 (Act 547) and the Timber Resources Management and Legality Licensing Regulations, 2017 (LI 2254) and statutory guidance documents for forest management in Ghana).
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Section 3 in the Logging manual (1998) defines the regulations for marking and transport of logs. Regulation 57 of Timber Resources Management and Legality Licensing Regulations, 2017 LI 2254 sets out the approved periods for timber operation and transport of forest produce. For instance, timber operations and transport of wood before 6am and after 6pm is prohibited. Regulation 60 of LI 2254 requires timber is transferred or moved from the forest only under the Log Measurement and Conveyance Certificate, which is issued by the Senior Range Supervisor of the Forestry Commission. Section 2(I) and (II) of Act 571 (The Forestry Commission Act) and the TIDD's Timber Trade Procedures and Guidelines requires: the registration of timber and timber product vendors and exporters; vetting of export contracts; inspection of timber products (lumber, veneer etc.); issuance of timber products Log Measurement and Conveyance Certificate and timber export permits. Companies are also required to obtain weekend permits issued by the Forestry Commission for transporting wood on weekends. Other issues relating to timber operations and transport on taboo days in the forest fringe communities are usually captured in the Timber Operation Specification (TOS) and SRAs during the consultation process.
- Approved export contract
- Approved export permit
- Approved parking list/product inspection report (Lumber Inspection Certificate - LIC)
- Certificate of registration with TIDD
- Log measurement and conveyance certificate (LMCC)
- TIDD input output statement
- Weekend and holiday log transport permit (if applicable)
- Plantation or reforestation plan
The TIDD implements an export system to control prices and prevent tax laundry (Forestry Commission Act 571, 1999). All prospective buyers and exporters of timber and wood products are required to register with TIDD (https://www.oldwebsite.fcghana.org/page.php?page=46§ion=22&typ=1&subs=253 or https://www.ghanatimber.org/register.php). Companies registered with the TIDD negotiate contracts with buyers based on the TIDD Guiding Selling Prices (GSP) and the TIDD receives, vets, and approves the contract and relevant documents on raw materials. The TIDD inspects the wood products after production and issues Wood Products Inspection Certificates. The timber company prepares an input/output list for the contract (Packing list) and the Summary Factory Specification Sheets. Before shipment, the timber contractor submits Permit Invoice Form, Permit Issue Form, Packing List, Summary Factory Specification Sheets, valid Ghana Exchange Control Form A2/Bank of Ghana Foreign Exchange Form 4A (FEX 4A), and approved payment receipts to the TIDD for approval.
The additional documentation and filing requirements for CbC reporting and local and master file submission under the Transfer pricing Regulation 2020 are likely to impose additional compliance burden on taxpayers in respect of related party transactions (Deloitte 2020). This arrangement ensures exported products are not sold at prices which are significantly lower than the market value of products and then sold to the next link in the supply chain at market prices, this arrangement thus avoids tax laundry (expert consultation conducted by NEPCon, 2016).
- Deloitte (2020). New Transfer Pricing Regulations take off in Ghana. Tax Updates. December 2020.
- EYGM Limited (2020). Ghana publishes Transfer Pricing Regulations 2020. Global Tax Alert. News from Transfer Pricing. 6 November 2020. EY Tax News Update: Global Edition. Ernst & Young Global Limited.
- Ghana Revenue Authority Practice Notes on Transfer Pricing Regulations 2012 (L.I 2188) (Methodologies and Related Issues) PN/CG0001/2013.
- KPMG (2020). Ghana: Transfer pricing regulations (2020). 2 December 2020.
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Ghana’s new Transfer Pricing Regulations 2020 (L.I.2412) entered into force on 2 November 2020 and replaced the former regulation from 2012 (L.I.2188).
Ghana is not a member of OECD and the L.I.2412 does not fully follow the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD Guidelines) 2017. However, many of the OECD revisions introduced by the OECD Guidelines has been included in the 2020 regulation.
The Transfer Pricing regulation from 2020 apply to all persons who are in a controlled relationship under the Income Tax Act or any other tax law of Ghana. The principle of an arm’s length must be applied between related parties, and the regulations defines the requirements for assessing whether this is in place (EY 2020).
The definition of what constitutes an arm’s-length transaction has not changed in accordance with the long-established global practice. In line with the new guidance in the OECD Guidelines, however, the new Regulations now specifically require the consideration of the allocation of the economically significant risks in determining the comparability of transactions. Assumption of risk, performance of mitigation functions and financial capacity to bear risk are explicitly required to be considered in determining transfer prices (EY 2020, p. 2).
The transfer pricing regulations (2020) introduced safe harbor rules that exempt related-party transactions from having to maintain contemporaneous transfer pricing documentation.
Safe harbor rules can be applied for transactions of a value less than the Ghana Cedis equivalent of U.S. $200,000. However, there are several services not qualifying as a low value-adding service. For trade with timber and wood products it is relevant to note that services do not qualify as low value-adding services when: services constitute the core business of the persons in the controlled relationship; or the service is a manufacturing and production activities and sales (KPMG 2020).
Taxpayers with related-party transactions are required to maintain and file the following documentation with the tax authority (KPMG 2020):
• Annual transfer pricing return—four months after the financial year-end
• CbC report—12 months after the financial year-end
• Local file—four months after the financial year-end
• Master file—four months after the financial year-end
- Approved TIDD export contract
- Approved TIDD export permit
- Bank of Ghana foreign exchange form 4A
- TIDD export minimum pricing categories
- Foreign Exchange Act, 2006 Act 723, 2006.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management)., 1999.
- Internal revenue (Tax Amnesty) Act, 2012 (Act 853), 2012.
- Internal Revenue Act 2000 (Act 592), 2000.
- Transfer Pricing regulation 2012 (LI 2188) (it is the main regulation on off-shore trading and transfer pricing)., 2012.
The TIDD maintains checkpoints on the highways to ensure all transported wood products to the ports have the required and approved documents. The approved documents (including packing list which contains information on species type, volume etc.) are submitted to the GRA (Customs) officials. The GRA (Customs) officials check the taxes payable per consignment, to the appropriate taxes are paid.
- Ghana Export Promotion Authority. (n.d.). FAQ on Ghanaian Export.
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- The Forestry Commission of Ghana (n.d.). Forest Laws and Regulations (Publications).
- The Forestry Commission of Ghana (n.d.). List of Concession Holders in Ghana and their permit category provided by the Forestry Commission of Ghana.
- The Ministry of Food and Agriculture (n.d.). Plant Protection and Regulatory Services.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Act 571 (The Forestry Commission Act): Section 2(I) and (II) defines the FC's responsibility in registering and regulating timber traders. The Ministry of Food and Agriculture is mandated by Act 803 (Plants and Fertilizer Act, 2010) to issue Phytosanitary Certificates at exit points. All exported/imported timber and timber products are declared at the Customs Division of the GRA, through GCNet platform, to the TIDD which ensures all exported/imported wood have the relevant legal documents. The Ghana Revenue Authority Act 2009, Act 791 Section 2 (objectives of the Authority) includes the provision for a holistic approach to tax and customs administration. Section 17(b) creates the Customs Division of the Authority.
- Approved export contract
- Approved export permit
- Inspection certificate (lumber, veneer, etc.).
- Phytosanitary certificate
- TIDD certificate of registration
- Customs, Excise and Preventive Service Management Law 1993 (P.N.D.C Law 330) (defines the authority and responsibilities of the Customs, Excise and Preventive Service (CEPS) Sections 11,17, 19, 201and 21 repealed by GRA Act 2009, Act 791., 1993.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management)., 1999.
- Ghana Revenue Authority Act 2009, Act 791. Establishes the Ghana Revenue Authority (GRA) to replace the Internal Revenue Service, the Customs, Excise and Preventive Service and the Value Added Tax Service for the administration of tax and related purposes, 2009.
- Plants and Fertilizer Act 2010 (Act 803) (requirement for registration and annual renewal of exporters and issuance of Phytosanitary Certificate for wood exports), 2010.
According to the undercover investigation by the EIA, 2019, the ruling party members at all levels of government are alleged to have established an institutionalized scheme, fuelled by bribes, to mask the illegal harvest, transport, export, and CITES-licensing of the timber. Illegal schemes used include fraudulent use of “salvage permits”; mis-declaration of timber species; use of “escorts” to deal with control points; forging of official documents; and retrospective issuance of CITES permits. The Forestry Commission challenged the EIA report however other public reports of illegal harvesting of Rosewood exist, some of which are in the courts (EIA, 2020, Yoda, 2019; Citinewsroom, 2019, Daily Trust, 2019; My Joy Online, 2019, 2019; Afriyie, et. al., 2021).
Given that falsification of CITES permits are included in the illegal export of rosewood from Ghana, this poses high risk for CITES certificates.
Although, this may be an isolated incidents of a single species, given the alleged modus operandi of the “illegal” scheme includes misrepresentation of species, it is possible other banned species could also be affected.
The risks identified for natural growing CITES species are only applicable to off reserve areas, as they mainly grow outside forest reserves.
Pericopsis elata (Afromosia) are endemic or confined to a specific forest reserve in Ghana. This area is under the concession of a specific company and this company is allowed to cut restricted amounts.
Pterocarpus erinaceus (rosewood) is a Savanna species which does not grow in the high forest zone of Ghana where forest reserves are located.
Cedrela are planted in plantations inside and outside forest reserves and are partly privately owned by investors in forest reserve plantations and fully privately owned in areas outside forest reserves.
- Appiah, M. & Bediako, D. B., (2020). Illegal logging driving Afromosia to extinction in Ghana. Nature & Development Foundation.
- CITES (2022). Ghana. Convention on International Trade in Endangered Species of Wild Fauna and Flora.
- Citinewsroom (2019). Savannah Region: Police impound truck loaded with Rosewood.
- Daily Trust (2019). $17bn Annual Loss: African Countries Move to Halt Illegal Rosewood Trade.
- EIA (2019). Ban-Boozled How Corruption and Collusion Fuel Illegal Rosewood Trade in Ghana. Environmental Investigation Agency.
- EIA (2020). Seizing the Moment: How Ghana Can End the Destruction of the Illegal Rosewood Trade Now. Blog Posts. Environmental Investigation Agency.
- Ghana Forest and Wildlife Policy (2012)
- Ghana Web (2019). Gra Intercepts 5 Container Loads Of Rosewood Headed For Tema Port.
- Joint monitoring and review mechanism of the Ghana EU-FLEGT Voluntary Partnership Agreement. Aide Memoire Meeting of the JMRM 14 and 15 May, 2019, Accra.
- Koomson, M. (2019). Assessing the level of awareness of relevant CITES stakeholders in Ghana. Universidad Internacional de Andalucia. UNIA Master’s Degree in Management and Conservation of Species in Trade: The Internaional Framwork (13th edition). Academic year 2017-2018. Masters Thesis. Sede Antonio Machado, Baeza (Jaén), Spain
- My Joy Online (2019). Forestry Commission Disputes BBC Report on Rosewood Trade Source: Ghana.
- The FLEGT Newsletter, 4th Edition, March 2016, Page 3.
- The Forestry Commission (2013). Draft Ghana Forest Plantation Strategy: 2015-2040
- Timber Resource Management Regulations (1998).
- Yoda, A. S. S., (2019). ‘We have cut them all’: Ghana struggles to protect its last old-growth forests.
- Natural forest
Verify that the CITES permit has been legally issued.
Ghana has ratified the CITES Convention as of 12 February 1976, but is as of January 2022 listed as a Category 3 country without implementing legislation (CITES 2022). According to “…Oppong (2017), old legislations that were enacted for management and regulation of wildlife resources in Ghana are those used for the implementation and enforcement of CITES in the country” (Koomson 2019).
Pericopsis elata (Afromosia) and Pterocarpus erinaceus (rosewood) are the wooden timber species in Ghana found in CITES, Appendix II.
Pericopsis elata is endemic to specific areas in Ghana and is classified as Scarlet star species (threatened in Ghana by over-exploitation) under Ghana’s species conservation star ratings and therefore protected. These species can only be felled with a restricted species permit issued by the FC with the approval of the Minister.
Both Pericopsis elata and Pterocarpus erinaceus are listed as restricted species in Schedule 8 of L.I.2257.
A ban on the harvesting and export of Pterocarpus erinaceus (rosewood) has been in place since 2012 and renewed several times since (EIA, 2019).
Cedrela odorata is included in appendix III. Cedrela odorata is an introduced plantation species in Ghana, found in both plantations in forest reserve areas and private plantations in off forest reserve areas. The species is not a native occurring species in Ghana, but as a CITES Appendices III listed species it is protected in at least one country, which has asked other CITES Parties for assistance in controlling the trade.
Exporters are required to obtain a CITES permit from the Forestry Commission before export.
- TIDD export Permit
- CITES export permit
Valid registration with the TIDD of the FC as a processor and trader is part of the requirement for setting up a processing facility, as well as securing a Lumber Inspection certificate (LIC), Lumber conveyance certificate and an export permit for each export made. Therefore exporters do not risk defaulting on these requirements. Some timber processors for the domestic market however fail to have this registration with the TIDD and some registered entities do not renew their registration annually, as required by law, and therefore do not possess valid registration. Ghana’s implementation of the VPA has helped to improve this situation, if not eliminated the issue. If not adhered to both TIDD and the processors are issued with non-conformities from field verifications carried out by the TVD of the FC and the Independent Monitor of the GhLAS.
- Business name search
- Business Registration. Register Generals Department.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Ministry of Lands and Natural Resources and Joint Monitoring Review Mechanism (JMRM) 2018. Third summary monitoring report
- Miro Forestry (Ghana) Ltd., May 2020
- Social Security and National Insurance Trust
- Sunstex Company Limited., November 2020:
- Taxpayers identification numbering system
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Environmental Assessment Regulations, 1999 Schedule 1 (Regulation 1(1)) lists the following applicable industries and products as requiring registration and an environment permit (Manufacturing Item 15 Wood):
a. Sawmill, planning mill and single mill product industries;
b. Veneer and plywood;
c. Other wood products;
d. Wood preservation facilities which use hazardous chemicals or similar chemical processes;
e. Particle board or wafer board production.
While this environmental requirement is applicable to the wood processing, an environmental permit is not included in the legality requirements for timber processing and trade under the Ghana Timber Legality Assurance System (GhLAS). However, timber processing companies that want to register with the Ghana Free Zones Authority are required by the Free Zone Board Act to have an environmental permit as part of their application process.
Timber processing entities need to have an Environmental Plan and go through the process of exemption or full EIA to acquire environmental permit from the EPA.
- Business registration certificate
- TIDD Registration Certificate
- Social security and National Insurance Trust (SSNIT) Clearance Certificate
- Companies Code 1963 (Act 179) (contains business registration requirements)., 1963.
- Forestry Commission Act 1999 (Act 571) (defines legal authority for forest management)., 1999.
- Incorporated Private Partnerships Act, 1962 (Act 152), 1962.
- National Pension Act 2008 (Act 766), 2008.
- Taxpayers Identification Numbering System, 2002 (Act 632) (outlines the requirements for registration of Tax Codes and Certificates from the Ghana Revenue Authority), 2002.
The review of sampled FSC audit summaries from the last five years, shows that companies pursuing FSC controlled wood certification are making efforts to be provided with environmental permits from the Environmental Protection Agency (FSC audit reports 2008-2018). Companies undergoing forest certification usually have an EPA permit for their factory or processing operations but not for forest operations.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Per Section 2 of the Forestry Commission Act 571 which sets out the functions of the Forestry Commission, the TIDD has developed Timber Trade Procedures and Guidelines which cover processing. Among other requirements, companies wishing to set up timber processing operations are required to register with the TIDD through an application process. The TIDD’s evaluation of application completeness includes an inspection of required documents such as the business plan and feasibility report, which includes the sources of raw material used by the company. Also, per the procedures, timber processing companies are required to keep records of materials along their timber supply chain, from raw material source through processing, to point of sale or export. Companies are required to maintain a register for material inputs and product outputs for different mill transformation points. Companies are also required to maintain a simple register indicating work instructions at the different transformation points.
- Valid environmental permit from EPA
- Valid factory inspectorate registration certificate
- Valid TIDD registration permit
- Environmental Assessment Regulation. 1999. (LI 1652), 1999.
- Environmental Protection Agency ACT, 1994 ACT 490 (Establishes the Environmental Protection Agency (EPA) and its functions to include enforcement and control of environmental impacts sections 12 to 15). Environmental impact assessment., 1994.
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Free Zone Act 1995 (Act 504), 1995.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Per Section 2 of the Forestry Commission Act 571 which sets out the functions of the Forestry Commission, the TIDD has developed Timber Trade Procedures and Guidelines which cover processing. Among other requirements, companies wishing to set up timber processing operations are required to register with the TIDD through an application process. The TIDD’s evaluation of application completeness includes an inspection of required documents such as the business plan and feasibility report, which includes the sources of raw material used by the company. Also, per the procedures, timber processing companies are required to keep records of materials along their timber supply chain, from raw material source through processing, to point of sale or export. Companies are required to maintain a register for material inputs and product outputs for different mill transformation points. Companies are also required to maintain a simple register indicating work instructions at the different transformation points.
- Company register of all timber material input and product output for different mill transformation points to demonstrate records of materials along their timber supply chain from raw material source through processing to point of sale or export
- Company’s simple work instructions at the different transformation points
- Valid TIDD Registration Certificate
There are adequate legal requirements on health and safety applicable to the wood processing sector, however enforcement and compliance among the small and medium operations so far is inadequate.
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour regulations, 2007 (LI 1833), Sections 18 to 20 and Sections 25 to 28; Labour Act, 2003 (Act 651): Part XV: 118-121; and 30 of Act 328 (factories, offices and shops act, 1970) provides for occupational safety and health and medical examination of workers at work. Section 75 of Act 328 provides the powers of inspectors to enter and inspect a factory at any time. As part of the requirements (Section 118 to 121 of the Labour Act), the employer is responsible to ensure workers are provided with satisfactory, safe and healthy conditions. Workers are obliged to use safety appliances, fire-fighting equipment and PPEs provided by the employer; and report imminent hazards to employer. Employers are required to report occupational accidents and diseases to the appropriate government authority. Supply of personnel protection equipment (PPE) and training of workers on safe felling practice, and observation of safety requirements in the timber industry.
In the absence of specific health and safety requirements in the forest sector in Ghana, the ILO Code of Practice on Safety and Health in Forestry Work (as set out in Table 1, page 37) is used as the minimum requirement for Health and Safety. Employers are required by the National Health Insurance Authority Act, 2012 (Act 852: Part II sections 12-13) to register their employees on the National Health Insurance Scheme (NHIS).
Employers are required by the Pesticides Control and Management Act, 1996 (Act 528: Section 21) to provide workers with the means to protect themselves from injury or hazards when handling pesticides. In case of injury, accident or death of employees, the Workmen's Compensation Law (PNDC law 187) provides the procedure for compensation.
- Accident reporting records
- Health and safety procedures and training records
- Medical examination records for applicable worker
- Personal protective equipment supply records
- TIDD inspection reports
- Workmen compensation payment records/insurance payment and claims records
- Certificate of registration and renewal from the Department of Factory Inspectorate
- Labour Act, 2003 (Act 651), 2003.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- Workmen's compensation Law (PNDC law 187) (outlines compensation procedures for injury, accident, or death of persons under employment).
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour Act, 2003 (Act 651), 2003.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour Act, 2003 (Act 651), 2003.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.
- John Bitar Company Limited (Suhuma), August 2020
- John Bitar Company Limited (Suhuma), Corrective Action Verification Audit Report, January 2021
- John Bitar Company Limited (Suhuma), May 2019
- Logs and Lumber Limited, July 2020
- Miro Forestry (Ghana) Ltd., May 2020
- Sunstex Company Limited., November 2020:
- Natural forest
- Plantation in forest reserves
- Plantation off-forest reserve
- Submerged forest
Labour Act, 2003 (Act 651) applies to all forestry workers, Section 10 and 79 of Act 651 provides the rights of a worker to form or join a trade union. Section 12 requires that workers are given an employment contract and section 20 provides the requirements for leave entitlement.
Section 12 to 17 of the Labour Act prescribes the conditions for legal employment, a written contract is required for workers engaged in employment for 6 months, or more, or a number of working days that is equivalent to 6 months or more within one year. The employer is required to provide the newly employed worker with written details of the contract of employment between the employer and worker, subject to the terms of the contract and within two months following the commencement of the employment. Employers are prohibited from using restrictive employment conditions to discriminate against persons, and from preventing or requiring workers to form or take part in activities of trade union. Section 15 provides the grounds for the termination of employment; Section 16 prescribes the types of employment contract; and Section 17 describes the conditions for terminating employment contract. Section 96, 98 refers to Collective agreement. Section 99 provides conditions for collective bargaining. The National Pension Act 2008 (Act 766), establishes National Pensions Regulatory Authority as the regulator and outlines the three-tier pension scheme. Employers are required under Section 3 (Contributions to the Scheme) to make deductions of pension contributions and to make payment to mandatory First and Second Tier schemes within 14 days of the preceding month. Section 33 establishes The Social Security and National Insurance Trust (the SSNIT) as operators of the basic national social security scheme referred to as the social security scheme or Tier 1. Employees are required to make Tier 1 contributions to SSNIT and Tier 2 Contributions to their selected NPRA
- Signed Collective Bargaining Agreement (CBA)
- SSNIT clearance certificates
- SSNIT contribution payment receipts
- Tier 2 Payment/deposit receipts to an NPRA approved trustee
- Workers employment contract
- Factory, offices, and shops Act, 1970 (Act 328) (covers general health and safety requirements applicable to timber processing activities)., 1970.
- Labour Act, 2003 (Act 651), 2003.
- Labour regulations, 2007 (LI 1833), 2007.
- National Health Insurance Authority Act, 2012 (Act 852), 2012.
- National Pension Act 2008 (Act 766), 2008.
- Pesticides Control and Management Act 1996 (Act 528), 1996.