In terms of financial sustainability, constant revenues from timber and carbon credits form a reliable source of income. However, Form Ghana doesn’t stop at their own commercial interest but aims to contribute to the economy at a local, national and global scale as well. Important aspects include boosting the local economy, applying a viable business model, stimulating investments in the (plantation) forestry sector and meeting global demand for sustainable timber.
Boosting the local economy
Form Ghana currently employs circa 500 workers mainly from fringing communities, which makes it one of the largest employers in the region. This creates business opportunities for smallholders in the vicinity of the company. A benefit sharing agreement has been signed, ensuring that at least 10% of the revenues flow back to the Forestry Commission, traditional landowners and the local communities. In the near future, timber processing of logs harvested by Form Ghana will create a new field of employment and value adding in Ghana. Finally, the Government of Ghana receives tax payments as is due.
Viable business model
Economic sustainability is assured through good financial returns from teak (Tectona grandis) round-wood production. A constant supply of timber is assured by the rotational harvest and the heterogeneous character of the plantation: a mix of teak and indigenous species is planted with a maximum of 90% teak.
Meeting global timber demand
Global demand for (sustainably produced) timber continues to grow and will exceed supply. Teak is a fast growing hardwood species that produces high quality timber and planting it has the potential to decrease the gap between supply and demand in a foreseeable future. Form Ghana intends to guarantee the long-term sustainable production of high quality timber.
Certified carbon credits add to the viable revenue stream in this pioneer sustainable business model and decrease the investment hurdle. This can significantly enhance the economic sustainability and pave the road for increased future investments to initiate new reforestation projects in Ghana.
Stimulating investments in (plantation) forestry in Ghana
Increased investments in the forestry subsector will contribute to Ghana's sustainable economic growth and (value added) exports of timber products. It will also turn the vast area of degraded forest lands into an economically productive and environmentally well managed region.