Ghana has taken a historic step in global timber trade by becoming the first African country and only the second worldwide after Indonesia to issue Forest Law Enforcement, Governance and Trade (FLEGT) licences, unlocking new access to the European Union’s €19 billion timber market.
The Forestry Commission on Tuesday awarded the first six certificates to five Ghanaian firms, including Samartex Timber and Plywood Co. Ltd, Logs and Lumber Ltd, JCM Company Ltd, Mere Plantations Ltd, and West Coast Wooden Products Ghana Ltd.
These licences grant immediate clearance to export legal timber products to high-value markets such as Italy, Germany, and Estonia.
A Game-Changer for Timber Exports
The FLEGT licence, a timber legality certificate agreed under the Ghana-EU Voluntary Partnership Agreement (VPA), verifies that timber shipments are harvested and processed in line with national laws.
Beyond securing trade, it positions Ghanaian timber as globally competitive, offering buyers in Europe assurance of sustainability and legality, key requirements under the EU’s Deforestation Regulation (EUDR).
“This milestone is not just about certificates; it’s about market credibility,” said Dr. Hugh Brown, Acting Chief Executive of the Forestry Commission. “Companies in the forest sector now have to align with global standards or risk being left out.”
For exporters, this breakthrough removes barriers to the lucrative EU market, where buyers increasingly demand legally certified wood products. By securing this licence, Ghanaian timber firms gain a first-mover advantage in a region tightening regulations on deforestation-linked imports.
Policy, Investment, and Growth Potential
Industry experts say the certification will boost Ghana’s timber export revenues, enhance investor confidence, and attract green financing into the forestry sector.
Timber exporters are also expected to benefit from premium pricing, as EU buyers often pay more for certified, sustainable products.
“The FLEGT licence is both an environmental and economic tool,” said Jonas Claes, Deputy Head of Delegation at the EU Mission in Ghana. “It facilitates trade while ensuring good forest governance. Today is a big day for EU-Ghana relations.”
The EU has already pledged strong support, including €400,000 worth of IT infrastructure for the Forestry Commission and an additional €37 million for sustainable resource management and value chain development, particularly in cocoa and cashew.
Business Beyond Timber
Analysts note that the certification sets a precedent for Ghana’s broader export economy. As the EU tightens environmental regulations, Ghanaian agribusinesses, from cocoa to cashew will need to align with sustainability rules to keep market access. Timber’s successful certification could become a model for other sectors.
Meanwhile, government officials stressed that the regime also strengthens enforcement. Emmanuel Armah-Kofi Buah, Minister of Lands and Natural Resources, warned illegal loggers and miners to “move out of forest zones before the law catches up with them.”
Strategic Positioning
The issuance of the licences follows Parliament’s June ratification of 131 Timber Utilisation Contracts, paving the way for Ghana to meet the EU’s October 8, 2025, deadline for legal timber exports under the VPA.
The EU has since classified Ghana as a “low-risk country” under its deforestation regulation, a status expected to boost trade volumes and investor confidence.
For companies such as Samartex and Logs and Lumber Ltd, this isn’t just a regulatory milestone but a business opportunity to expand into premium EU markets where competition is fierce but rewards are higher.
Nonetheless, experts argue that if Ghana sustains compliance, the FLEGT licence could transform the forestry industry into a pillar of the country’s green economy.
By leveraging sustainability as a competitive edge, Ghana could attract climate-linked financing and position itself as a hub for legal, eco-certified timber in Africa.
