The project approval came a day after Ghana ratified the Paris Agreement on climate change and is backed by a $10 million concessional loan from the Climate Investment Funds' Forest Investment Program (CIF FIP).
The project is designed to help reverse the devastating trend of deforestation in Ghana by restoring and expanding an existing FSC certified 5,000 hectares forest plantation to nearly 12,000 hectares sustainable commercial forest plantation. The project will conform to FSC standards at all times.
The forestry sector is estimated to contribute about 4% to the country’s GDP, and provides a livelihood for around 650,000 people. This project will create new 400 direct full-time jobs and 600 direct seasonal jobs. Part of the project plan is for 40% of the jobs generated to be held by women.
This initiative is unique, but replicable and demonstrates that collaboration between actors representing both the public and private sectors can have a significant transformational impact on the forest plantation sector. The project represents a new business model that will serve as an example to other investors, producing wood products which incorporate both quality and sustainability and will help meet increasing market demand while avoiding pressure on natural forests.
Gareth Philips, AfDB's CIF FIP Coordinator, said “The FSC certification has been key in getting this project approved, as it provides investors with the confidence that the project is sustainable and at the same time brings authentic long-term benefits to the communities and environment.”
Paul Hol, Executive Director of Form International, stated that “this is a breakthrough for private investments in forestry on the continent…It can be an important front running project for the African Forest Landscape Restoration Initiative (AFR100) from the World Resources Institute (WRI) and NEPAD which aims at restoring 100 million ha of land in Africa by the year 2030”.