Unlocking capital flows for forest sector development in Africa
The African Development Bank (AfDB) and the Climate Investment Funds’ forest investment programme (CIF FIP) have released a report on how unlocking capital can foster forest sector development in Africa and highlights the benefits of forestry investments in Ghana and in West Africa. The report has been built on the results of the first African Forestry Investment Conference (AFIC) organised by AfDB in Ghana in June 2017. According to the report, African countries have experienced the world’s most extreme land degradation through deforestation which is seriously impacting Africa’s economic development and compromising the continent’s resilience to climate change. Forestry is currently a critical sector for Ghana, which supports the livelihood of a significant part of its population, said the report. However, Ghana’s forest resources are being depleted at an alarming rate. The country requires a sustainable forest management to curb this trend and boost economic development of the country. The report has stressed that the forestry sector in Ghana requires long term funding but currently attracts limited financing due to perceived high risk and the nature of the financial market.