AfDB invests $14 million in restoration of degraded forests in Ghana
The Board of Directors of the African Development Bank Group (AfDB) approved a $14 million senior loan through its private sector window to Form Ghana Ltd for restoration of degraded forest reserves through sustainably managed forest plantations. This was reported by allAfrica back in July.
According to ITTO, this agreement is a first-of-its-kind in the forest sector and backed by a $10 million concessional loan from the Climate Investment Fund. ITTO also quotes the AfDB’s Director for Private Sector Department, Kodeidja Diallo saying “This project is the Bank’s first direct intervention in forestry through a private sector window and will serve as a pilot in setting the pace for engaging the private sector in sustainable forest plantation management.”
Ghana’s forest resources have been depleted at an alarming rate
According to allAfrica, the decision “supports the Bank’s contribution to inclusive and green growth, and its commitment to providing and leveraging well-placed finance for climate resilience.” (…) “African countries have experienced the world’s most extreme land degradation through deforestation and this is seriously impacting Africa’s economic development, and compromising the continent’s resilience to climate change. Forestry is historically and currently a critical sector for Ghana, supporting the livelihood of a significant part of its population but Ghana’s forest resources have over the last decades been depleted at an alarming rate. Sustainable forest management is therefore important to curb this trend and keep Ghana on the path to green growth. The sector requires long term funding but currently attracts very limited private sector financing due mainly to perceived high risk and the nature of the financial market”.
The Form Ghana reforestation project will establish a forest plantation in areas that used to be productive semi-deciduous forest reserves but that were, over the last decades severely degraded.
Read the full article in allAfrica here.
The latest ITTO report is available for download on the ITTO website or on GTF Downloads.
Added by: Sarah Storck