The Forestry Commission (FC), in collaboration with representatives from Traditional Authorities/Land Owners, the Ministry of Lands and Natural Resources (MLNR), the Office of the Administrator of Stool Lands (OASL), and the Timber Industry, has met to review timber stumpage fees.
Following a series of meetings, discussions and deliberations, the stakeholders have successfully agreed that stumpage fees should be increased to 30% of the legally mandated fees, set to take effect on April 2, 2025.
The parties have agreed to an increase in stumpage fees, starting at 30% of the legally mandated fees. This will gradually increase to 70% over the next two years.
The Chairman of the deliberations, Ogyeahoho Yaw Gyebi II, Omanhene of the Sefwi Anhwiaso Traditional Area and President of the National House of Chiefs, expressed his pleasure in being part of the discussions. Conveying greetings from “Nananom” nationwide, he played a crucial role in fostering a peaceful and collaborative atmosphere, ensuring that the outcomes served both stakeholders’ interests and the national good.
Dr. Hugh C.A. Brown, Acting Chief Executive of the Forestry Commission, extended his appreciation to all stakeholders for prioritising the review. He emphasised the importance of stumpage fees in supporting the FC, “Nananom”, and national development. He also highlighted the legal requirement for periodic fee reviews, the impact of cedi depreciation on the stumpage formula, and the challenge of fees falling below legal thresholds. Referring to a 2018 directive from the MLNR, he stressed the need for timely reviews in alignment with the law.
Mr. Gad Asorwoe Akwensivie, Acting Administrator for Stool Lands, reaffirmed Nananom’s trust and expectations, expressing his commitment to a successful review process.
To provide context, Mr. Kwame Agyei, M anager Plantations Investment and Extension, delivered a presentation summarising discussions from the previous meeting held on Wednesday, 12th March 2025. He laid particular emphasis on the legal and historical background of stumpage fee reviews as well as proposals submitted by FC and OASL at the meeting towards achieving the legally mandated fees.
Mr. Richard Nsenkyire, Chairman of the Forest Industries Association of Ghana (FIAG), presented the timber companies’ perspective on the review of the stumpage fees. He acknowledged their commitment to stumpage fee obligations but raised concerns about the current stumpage calculation formula, arguing that it does not align with standard economic principles. This, he noted, puts Timber Utilization Contract (TUC) holders at a disadvantage regardless of market conditions. His concerns included issues such as lumber recovery rates, log prices, stumpage rate determination, foreign currency-based stumpage pricing, export market conditions, and local business dynamics.
The Chairman advised the Forestry Commission and the Timber Industry to hold further discussions on the stumpage formula and work towards a consensus. He suggested that they engage the government to implement a new law that would benefit all stakeholders.