However, we believe that Ghana's forestry sector requires significant restructuring to fully capture the national benefits of the timber trade and to achieve sustainable forest management. The sector currently contributes close to 6 per cent of the country's gross domestic product and 11 per cent of export earnings. But increasing demand for Ghanaian timber has led to dwindling stocks and quality within the Ghanaian tropical forest. Current rates of extraction are unsustainable in the short term.
Inefficiencies lead to resource wastage, both in the forest and at the mill.
Since the majority of the revenue from the forestry sector comes from exports, the nation is therefore at a disadvantage in realising the full potential of the industry. Though the quality of Ghana's timber is acclaimed in the world market, the country is not known as a major supplier of processed wood items. Overseas buyers have reservations about Ghana's ability to sustain the supply of high-quality products. In recent years the government has taken many measures to address deforestation and illegal logging. These have included regulations to control illegal chainsaw operators and speculative felling for log exports, and a timber auction to clear the serious glut of stockpiled logs.