Forestry sector contributed GH¢10.83 Billion to GDP, study reveals
Ghana's forestry sector, particularly in the areas of forest and logging, made a significant contribution to the national economy, adding GH¢10.83 billion to the country's Gross Domestic Product (GDP) in 2014, according to a study.
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The study conducted by the Ghana Statistical Service (GSS) in collaboration with the Forestry Commission (FC), the Food and Agriculture Organisation (FAO), and Warnel School of Forestry of the University of Georgia in the USA found that this figure represented two percent of Ghana’s GDP for that year, highlighting the sector's economic importance.
The study aimed to assess the forestry sector's role in Ghana's economic development. Despite its significant contribution, the study found that the economic impact of the forestry sector is often underestimated due to factors such as high informality, weak reporting, and a lack of disaggregated data.
From 2014 to 2023, the forestry sector's contribution to Ghana's GDP averaged 1.5%, reflecting both the ongoing economic relevance of the sector and the challenges it faces in maximizing its potential.
The findings were a focal point at a two-day National Policy Dialogue in Accra, where stakeholders from government, industry, and civil society convened to discuss the final report on "Economic Contribution and Sectoral Linkages of the Forest Sector to the National Economy of Ghana."
The dialogue aimed to raise awareness of the sector's contributions and to explore policy measures that could further enhance its impact on the economy.
In his keynote address on September 3, 2023, the Minister of Lands and Natural Resources, Samuel Jinapor, highlighted the sector’s crucial role in supporting the economy and livelihoods across the country.
Read by the Chief Director of the Ministry, Prof. Patrick Agbesubyale, the address also emphasized the importance of addressing challenges such as deforestation and illegal logging to sustain the sector's contributions.
The Government Statistician, Professor Samuel K. Annim, in remarks made on his behalf by the Head of Business and Industry of GSS, Dr Owusu Kagy, mentioned that the lack of data for forest-related activities hindered the estimation of the full forest sector’s contribution to the economy.
Prof. Annim said the report indicates that the sector supported household livelihoods and had strong ties with agriculture, particularly the crop-growing sector
For his part, the Chief Executive Officer of the Forestry Commission, John Allotey, indicated that about 600 million people in local communities live and directly depend on the forests.
“In Ghana, the forestry sector plays a pivotal role, not only in preserving our bio-diversity, but also in contributing significantly to the livelihoods of millions of Ghanaians,” he indicated.
He added that the forest sector provides micronutrients for the production of key tree crops and foodstuffs in Ghana, such as cocoa.
The report and discussions at the dialogue are expected to inform future policy decisions, aiming to better integrate the forestry sector into Ghana's broader economic planning and development strategies.