Ghana’s Minister of Lands and Natural Resources Alhaji Fuseini has said the country’s cooperation with the EU and others will continue until illegal logging and trade in illegally sourced and manufactured wood products is eliminated.

Mr Alhaji Fuseini made the remarks at a ceremony in Accra where a new Aide Memoire was signed with the European Union. The signing of the Aide Memoire took place after the fifth meeting of the Joint Monitoring Review Mechanism (JMRM) from28-31 May. At this meeting the discussion centred on mechanisms for supervision and review of the implementation of the VPA.

The outcome of the JMRM was agreement on the development of a joint framework to monitor the impact of VPA implementation and finalise the rules of arbitration and procedure. The agreement on these issues was included in the Aide Memoire.

Increasing sawnwood availability in the domestic market will help eliminate illegally cut timber

In another development, the Wood Workers Association of Ghana (WWAG) has appealed to government to find ways to increase the supply of sawnwood to the local market to satisfy demand and make it unnecessary for consumers to have to turn to illegally processed sawnwood.

Ghana has developed policy that seeks to improve the supply of legal timber demand by the domestic market. Under the policy, sawmills are required to supply at least 40% of their production to the domestic market but even with the new policy domestic demand cannot be satisfied.

Providing competitive financing for small and medium sized companies

In a recent press release the African Development Bank (AfDB) reported approval of a USS 20 million line of credit for UT Bank Ghana to support the commercial activities of Small and Medium Enterprises (SMEs) and local corporations.

As the Ghanaian economy continues to grow and diversify, there is increasing need to address unsatisfied demand for competitive financing for small and medium sized companies in key economic sectors such as agriculture and light manufacturing.

This new facility aims to support financial sector development, enhance regional integration through intra-African trade and contribute to government revenue generation.

The financing being made available is expected to facilitate trade in essential raw materials, intermediate and finished goods, and equipment worth around US$ 140 million.

See:http://www.afdb.org/en/news-and-events/article/afdb-approves-a-usd-20-million-trade-finance-line-of-credit-for-ut-bank-ghana-to-support-smes-and-local-corporates-11813/

Positive medium term growth forecast for Ghana

The African Development Bank (AfDB) has just released it African Economic Outlook (AEO) (May 27, 2013) which says Ghana’s economy is expected to grow a further 8% by end of 2013. The AfDB report also forecast an 8.7% growth of the Ghanaian economy in 2014.

Ghana’s medium term growth outlook remains positive due largely to investments in extractives sector industries, public infrastructure and commercial agriculture.

Ghana’s GDP growth slowed from 14.4% in 2011 to 7.1% in 2012. However, the report notes that a 7.1% growth, when the world economies were in serious trouble, was encouraging despite lower cocoa and oil production during the year.

The AfDB Outlook maintained a focus on the high level of unemployment and urged the government of Ghana to create the right investment environment to stimulate growth in labour intensive industries.

See: http://www.afdb.org/en/knowledge/publications/african-economic-outlook/

Boule Export prices

Domestic Log Prices

Export Sawnwood Prices

Export Rotary Veneer Prices

Export Sliced Veneer Prices

Export Plywood Prices

Grade AB/BB would attract a premium of 10%, B/BB 5%, C/CC 5% and CC/CC 10%.

Export Added Value Product Prices

Grade 2 less 5%, Grade 3 less 10%.