The government of Ghana, through the Ministry of Lands and Natural Resources (MLNR), has secured a seven million-dollar loan facility at a concessionary rate to stimulate private sector investment in small to medium scale commercial forest plantations across the country.
The concessionary loan forms part of the Forest Investment Program (FIP) aims at cushioning the forestry sector which is fast depleting in the country. According to the MLNR, it will soon disburse the facility to industry players.
The Deputy Minister of Lands and Natural Resources, Mr Benita Owusu Bio, announced this at the launch of the Forest Industries Association of Ghana (FIAG) in Accra. Mr. Bio urged members of the Association to apply for the facility when it is advertised to build on their raw material base.
The Forest Industries Association of Ghana
Meanwhile, the newly launched FIAG is made up of 10 timber trade associations resident in the country. This comprises the Ghana Timber Millers Organisation, Ghana Timber Association, Furniture and Wood Products Association of Ghana, and the Wood Workers Association of Ghana.
Others include the Ghana Sawn Timber Sellers Association, Domestic Lumber Traders Association, and the Domestic Lumber Manufacturers Association of Ghana. Also included is the National Association of Handicraft Exporters, Kumasi Wood Cluster and the Ghana Canoe Carvers Association. The FIAG seeks to bring all these associations which have operated independently over several decades in the past under one umbrella body.
At the launch, Mr.Bio congratulated the industry players for coming together to champion their course and seek the necessary partnerships. According to him, it will help restore the depletion of forest resources that also served as a raw material for the industry players.
Furthermore, the deputy Minister indicated that the government recognizes the significant contribution of the wood industry in the country. Also, he noted that the government is aware of the potential of the sector to expand and generate additional revenue and employment. However, he noted that all these will be possible provided the raw material supply base could be guaranteed and sustained.
The Green Ghana Project
Mr. Bio further explained that the growth of the business certainly depended directly on the availability and supply of raw materials. To this end, he assured that the government is committed to helping the sector through the Green Ghana Project. According to him, over five million trees were planted across the country under the project. He added that the government is hoping to increase this yearly to 100 million trees by the year 2024.
Moreover, the Deputy Minister indicated that the government is undertaking a number of interventions across various ecological zones in the country aims at securing the forest estate from further degradation. These initiatives will also contribute to promoting trade in the wood industry.
The implementation of the Voluntary Partnership Agreement and the issuance of the Forest Law Enforcement are some examples. Others include the Governance and Trade License (FLEGT), and the youth in afforestation program.
Consequently, Mr. Bio called for a collaboration between the private sector, Government and training institutions to develop training programmes that would suit the needs of the industry as well as meet the aspirations of job seekers.
On his part, Mr Richard Nsenkyire, Chairman of FIAG, urged the government to create the right business environment to help boost the sector. This, he believes, will increase revenues and job creation among the teeming youth.
The Chairman of FIAG noted that the members had come together to provide a unified voice on their challenges, and to provide a platform for learning and experience sharing. The FIAG will also encourage business engagement as well as ensure product quality control.
Mr. Richard Nsenkyire assured that the Association is ready to promote a sustainable forestry industry by serving members through advocacy, research and market development. loan loan loan
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