Sourcing Hub

Timber Risk Score: 54 / 100 in 2022. The Timber Legality Risk Assessment contains an evaluation of the risk of illegality in Ghana for 6 categories and 26 sub-categories of law. We found:

  • Specified risk for 13 sub-categories.

  • Low risk for 13 sub-categories.

  • No legal requirements for 1 sub-category.

This page provides an overview of the legality risks related to timber produced in Ghana. 

Ghana has approximately 9.3 million ha of forest which covers 39% of the country (FAO, 2015).  Nearly 97% is natural forest, while the remaining 3% is plantation.

Due to an export ban on raw logs from natural forests, most of the 2.1 million m3 of Roundwood produced in the country (2014 data) is processed domestically (ITTO, 2015). 0.8 million m3 Roundwood equivalent of timber products were exported in 2012, with most going to African countries, China, and India (Hoare, 2014). The proportion of trade to these countries is increasing, while trade to 'environmentally sensitive' markets such as the EU and USA is decreasing.

Illegal logging is a considerable problem in Ghana. The chainsaw logging that supplies over 70% of the domestic market is considered illegal (EU FLEGT, 2015). Numerous problems are said to exist with logging permits (EU FLEGT Facility, 2015), harvesting levels significantly exceed the annual allowable cut (itself said to exceed a sustainable level), and a survey of experts' perceptions of the level of illegal logging resulted in an average estimate of 49% of total log production (Hoare, 2014).

Several legal risks are present in Ghanaian timber supply chains. The risks are wide-ranging and appear across all categories of law. If you are sourcing timber from Ghana you should take care to ensure the extensive risks identified are not present in your supply chains or have been sufficiently mitigated.

Corruption Perceptions Index

Score: 43 / 100 in 2021

Rank: 73 out of 180 countries in 2021

Bans and restrictions

A ban on felling, harvesting, and exportation of Rosewood (Pterocarpus Erinaceus) since 2014 until further notice

Armed conflict

There are currently no armed conflicts in Ghana according to the Council on Foreign Relations' Global Conflict Tracker. 

Voluntary Partnership Agreement

VPA status: Implementing

 

CITES species

CITES appendix II: Cedrela odorata, Pericopsis elata, Pterocarpus erinaceus

 

Certification

FSC Certified Forest Area : 21,430 hectares (4 December 2019). 

Timber sources

  • Find out the different sources of legal timber.
  • Determine which source type your timber comes from.
  • Find out the main documents that can be used to indicate legality throughout the supply chain.
Timber source types Description of source type

Natural forest

In forest reserve

A natural forest within Ghana’s forest reserves (permanent forest estates). 
These forests are on stool/skin lands and owned by stools and skins, of which chiefs are the custodians but vested in Ghana’s president and managed by the Forestry Commission. Small-Scale Timber Utilisation Contracts (Small-Scale TUC), Large-scale Timber Utilisation Contracts (Large-scale TUC), and Salvage permits are the applicable permits to this source of timber.

Off-forest reserve

The natural forest outside Ghana’s forest reserves, on land owned by stools and skins, families, individuals, and public institutions. The FC shall assess if the land qualifies as a small or large scale TUC based on area and timber stock if a landowner wants to allocate a TUC to a company. 
Small-Scale Timber Utilisation Contracts (Small-Scale TUC), Large-scale Timber Utilisation Contracts (Large-scale TUC), and Salvage permits are the applicable permits to this source of timber.

Plantation

In forest reserve

Plantation within Ghana’s forest reserves (permanent forest estates). 
Plantations established by the Forestry Commission are managed by the Forestry Commission, whereas private plantations are under special benefit-sharing arrangements with investors. The entry and salvage permits are applicable permits to plantations established and managed by the Forestry Commission or private investors. The Forestry Commission monitors plantations and issues the Plantation Production Certificate for plantations, replacing the requirements for tree information form (TIF) and the log information form (LIF). Log Measurement and Conveyance Certificate to convey harvested products is required.

Off-forest reserve

Plantations outside forest reserves, on lands owned by stool (community), family, individuals or public institutions. The plantations are privately managed.  The Forestry Commission monitors plantations and issues the Plantation Production Certificate for plantations, replacing the requirements for tree information form (TIF) and the log information form (LIF). 
This type of plantation does not need any permit to operate or harvest, but a Log Measurement and Conveyance Certificate to convey harvested products is required.

Submerged forest

Permits are issued only in special cases.
Underwater forests, off-reserve, on a stool and family lands. The Forestry Commission grants timber harvesting rights through salvage permits for Volta Lake in Ghana.
There are no management requirements related to harvesting wood from submerged forests. However, there are requirements for harvesting, health and safety of the workers, legal employment, environmental requirements, and trade and transport of the timber.

 

Risk assessment summary

Legal rights to harvest         

Legal rights to harvest, EUTR
  • Concession leases are not converted to Timber Utilisation Contract (TUCs) (1.2)
  • Plantation and reforestation plans are lacking (1.3).
  • Area plans, and operational plans are lacking or not meeting legal requirements (1.3).
  • Logging takes place without a permit (1.4).
  • Award of salvage permits for banned species in violation of salvage permit conditions (1.4).

Taxes and fees                      
tax
  • No specified risks identified. See full risk assessment for details
Timber harvesting activities

timber harvesting activities, EUTR
  • Protected species are illegally harvested (1.9).
  • Protected areas are illegally harvested (1.9).
  • Personal safety and protective equipment are not provided to or used by workers (1.11).
  • 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 (1.12).
  • Workers do not have contracts and obligatory insurance (1.12).
  • Risk that pensions contribution payment (tier 1 contributions and tier 2 deduction payments) are not paid by the employer (1.12).

Third parties' rights

Third party rights
  • No specified risks identified. See full risk assessment for details
Trade and transport
Trade and transport, EUTR
  • Transport of logs for the domestic market takes place without Log Measurements Conveyance Certificates (LMCCs) (1.17). 
  • CITES species are illegally harvested and exported with a CITES permit fraudulently issued (1.20).

Processing

Red logo of saw machine
  • Processing entities do not have a valid operating environmental permit obtained from the EPA (1.23).
  • Timber processing entities are not registered with the TIDD (1.24).
  • Personal safety and protective equipment are not provided to or used by workers, especially among the small and medium operations (1.25)
  • Workers do not have contracts and obligatory insurance (1.26)

 

Mitigate the risks in your supply chain

Learn which actions we recommended to mitigate the risks associated with the timber sourced from Ghana by looking at our DRAFT Risk Mitigation Guide.

Source Certified Materials 

NEPCon believes that third-party certification (for example FSC and PEFC certification) can provide strong assurances of the legality of the products they cover. Companies seeking to mitigate the risks of sourcing illegal timber should seek to purchase the third party certified materials wherever possible. 

While the European Timber Regulation does not include an automatic “green lane” for certified products, it does recognise the value of certification as a tool for risk assessment and mitigation. The European Commission says that companies “may rate credibly certified products as having the negligible risk of being illegal, i.e. suitable for placing on the market with no further risk mitigation measures, provided that the rest of the information gathered and the replies to the risk assessment questions do not contradict such a conclusion.”

For more information on using certified materials in your due diligence, including how to assess whether a certification system meets EUTR requirements, see the page on Certification and Due Diligence.

Mitigation recommendations

There are six recommended actions to mitigate the risks associated with the timber sources from Ghana:

1. Fully map your supply chain

2. Obtain and verify documents    

3. Consult with stakeholders    

4. Carry out on-site verification    

5. Conduct targeted timber testing

  • Conduct timber testing on samples of purchased material to verify the species or origin of timber, where appropriate
Profile Publication Date
2022-03-29