Following a petition by the Ghana Timber Millers’ Organisation (GTMO), The Forestry Commission (FC) has conducted a review of timber stumpage fees to be implemented by August 15th, 2025, subsequent to an earlier review in March 2025.
A stakeholder engagement brought together key actors including Executive Management Team of FC, some traditional authorities, the Office of the Administrator of Stool Lands (OASL), and leadership from the timber industry. The meeting was chaired by Ogyeahohoo Yaw Gyebi II, Omanhene of the Sefwi Anhwiaso Traditional Area and President of the National House of Chiefs.
In his opening remarks, Ogyeahohoo Gyebi II highlighted the pressing need to address the financial challenges confronting the timber sector. He noted that the strengthening of the Ghanaian cedi against major international currencies has led to a decline in export revenue, while operational costs have remained high.
The Acting Chief Executive of the Forestry Commission, Dr. Hugh Brown, reiterated the Commission’s commitment to constructive dialogue. “It is expedient and fair that we sit around the table to resolve this issue,” he stated, referencing a formal petition submitted by industry players who were concerned about the impact of recent cedi appreciation on their businesses.
Representing the OASL, Mr. Gad Asorwoe Akwensivie conveyed the Institution’s goodwill and acknowledged that the earlier stumpage fee projections from March were based on economic trends that have since shifted. He emphasised the need for updated discussions to reflect current realities.
Mr. Alexander Dadzie, Acting National President of the Ghana Timber Trade and Industry Association (GTTIA), spoke on behalf of the timber industry, explaining some challenges that have plagued the industry in recent times. He mentioned that the cedi’s appreciation has been bad for exportation and operational cost. He expressed optimism that the dialogue would lead to a sustainable resolution.
A presentation by Mr. Kwame Agyei, Manager, Plantations Investment and Extension, Forest Services Division, provided technical insight into the fee adjustment.
According to Mr. Agyei, the March 2025 review had introduced a phased approach for review of stumpage fees to ensure alignment with the Timber Resource Management and Legality Licensing Regulations, 2017 (LI 2254).
Using the stumpage fee formula prescribed under LI 2254, ,the progressive alignment of the fees with the legally mandated formula commenced with the implementation of 30% of the legally mandated fees, effective 2nd May 2025, with plans to scale up to 70% over two years.
However, a sharp 21% appreciation of the Ghanaian cedi against the Euro between March and July 2025, had caused stumpage fees to exceed the intended 30% threshold. As a result, the FC recalculated the fees using the updated exchange rate of 1 EUR = GH₵12.54 (compared to GH₵15.89 in March), which maintains the stumpage fees at 30% of the legally mandated fees.
Following the presentation, participants unanimously agreed that the proposed adjustment was fair and conducive to the sustainable development of the timber industry.
Closing the session, Professor Martin Oteng – Ababio, Chairman of the Forestry Commission Board, commended all parties for their constructive participation. He underscored the importance of timely interventions to sustain the industry and reaffirmed the FC’s full commitment to its growth.
