The wood sector contributes 6-8% of the country's GDP and directly employs over 80,000 workers. Roughly 34% of Ghana's total land area (23.85 million hectares) is forest covered. About 24 of the 420 timber species are traded, including mahogany, sapele and African walnut. The industry has progressively moved towards value-added production with many companies investing in new technologies to diversify product range.
Investment opportunities
Establishment of commercial forest plantations: An estimated 400,000 hectares of land are available within the country's degraded forest reserves that can be converted to plantations. There is also a large number of exhausted cocoa farms and degraded areas outside reserves areas that are suitable for plantation development.
Wood processors are seeking joint ventures with investors to upgrade current plant and
equipment, improve management practices, and increase range of products offered. Opportunities for investment exist in the following product areas;
Sector overview
Ghana has supplied Europe with timber in log form (mostly mahogany) as far back as 1833. Timber is the country's fourth export earner, raking in around 400 million dollars per year. Exports of sawn lumber have grown significantly to include veneer sheets and plywood. The forestry sector has seen major policy reviews, improvements in management practices,
and institutional restructuring. These have been largely supported by international donors and are aimed at eliminating the rate of forest decline while supporting economic growth. Incentives have continued to attract investors to large scale plantation development.
Exports:60% of wood exports are shipped to European Union markets including Italy, France, Germany, Belgium and the United Kingdom. Other new markets include the US, South Africa, Saudi Arabia, Australia, Hong Kong, Singapore and China.
Advantages for investors in the processed wood sector
Raw materials:Ghana has excellent climatic conditions for natural forest regeneration as well as abundant land outside official reserves for establishing large-scale plantations. Species for lumber (teak and cedrela) and pulp (gmelina) have been successfully established. However, other species with commercial
potential have yet to be harvested on a commercial basis.
Human resources: There is abundant workforce in the sector. Institutions from vocational to university level train specialists in wood science and technology, forest management, carpentry, furniture design and construction.
Other advantages:Excellent water, electricity, communications and transport systems; and low labour rates.
Incentives
Specific incentives
For more information, contact the Ghana Investment Promotion Centre (GIPC).
Key contact: Stephen Debre
Snr. Investment Officer
Agric & Agribusiness
Email: sdebre@gipcghana.com
Web: http://www.gipcghana.com
