The Forestry Commission recorded a GH¢14.40 million deficit in 2025, reversing a GH¢77.92 million surplus recorded in 2024, according to the 2025 State Ownership Report by the State Interests and Governance Authority (SIGA).
The deterioration was driven largely by a sharp increase in expenditure, despite a marginal rise in total income.
The Commission’s total income increased by 0.63% from GH¢772.94 million in 2024 to GH¢777.85 million in 2025.
However, total costs rose by 13.99%, from GH¢695.02 million to GH¢792.25 million during the same period.
Government subvention falls
SIGA reported that government subvention declined by 12.99%, from GH¢327.97 million to GH¢285.38 million.
The reduction was largely attributed to the discontinuation of the Youth in Afforestation/Reforestation Programme in March 2025.
The Commission’s internally generated funds also fell by 13.79%, from GH¢285.49 million in 2024 to GH¢246.12 million in 2025.
Despite the decline in government support and IGF, donor funding increased by 54.47%, contributing to the marginal growth in total income.
Cash flow turns sharply negative
The Commission’s financial position was also affected by a significant deterioration in operating cash flow.
Net cash flow from operating activities fell from a positive GH¢122.76 million in 2024 to negative GH¢139.93 million in 2025.
Cash and cash equivalents declined from GH¢545.94 million to GH¢302.92 million.
The current ratio also weakened from 1.36:1 to 1.20:1, although SIGA said the Commission remained in a position to meet its maturing obligations.
Short-term debt coverage, however, moved from 28.10% to negative 47.13%, signalling potential short-term liquidity pressures.
Liabilities remain high
Forestry Commission’s total assets declined from GH¢691.59 million in 2024 to GH¢463.85 million in 2025, while its accumulated fund fell from GH¢254.78 million to GH¢166.94 million.
Total liabilities stood at GH¢296.91 million, representing a debt-to-assets ratio of 0.64:1, up slightly from 0.63:1 in 2024.
The Commission reported no interest-bearing liabilities, with its liabilities largely reflected in accounts payable, which stood at GH¢296.91 million.
SIGA warned that the combination of declining assets and relatively high liabilities could pose risks to the Commission’s long-term financial stability if liabilities are not properly managed.
18,972 hectares established under Tree for Life
Despite the financial challenges, the Forestry Commission reported significant progress under the Tree for Life (T4L) Reforestation Initiative.
A total of 18,972 hectares of forest plantations were established in 2025. Of this, 12,904.5 hectares were developed through public-sector interventions, while 6,067.76 hectares were established through private-sector investment.
The Commission also undertook enrichment planting on 2,364.9 hectares of moderately degraded forest reserves.
More than 1.8 million tree seedlings were distributed for planting on an estimated 62,949 hectares of farmland, while another 1.9 million seedlings were distributed to the general public for amenity planting.
Cumulatively, the Commission said 26.3 million tree seedlings had been planted nationwide under the Tree for Life initiative through public and private interventions.
Ghana issues first FLEGT licences in Africa
Another major development was Ghana’s issuance of its first Forest Law Enforcement, Governance and Trade (FLEGT) licences on 15 August 2025.
According to SIGA, Ghana became the first African country and the second country globally, after Indonesia, to issue FLEGT licences for timber exports to the European Union.
The development followed Parliament’s ratification of 131 Timber Utilisation Contracts (TUCs) on 23 July 2025.
Ghana also signed a GBP6.5 million in-kind support agreement with the United Kingdom in December 2025 for implementation of a Forest Governance Partnership.
The Forestry Commission reported several climate-smart investments during the year, including the Ghana Shea Landscape Emission Reductions Project, Ghana Cocoa Forest REDD+ Programme, FC/Tullow REDD+ Project and the Forest and Farm Facility Phase II Project.
Overall, SIGA’s report shows that while the Forestry Commission expanded reforestation and forest-governance activities in 2025, its financial performance weakened significantly, with a return to deficit, lower IGF, reduced cash holdings and negative operating cash flow.
