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GHANA SECURES ONE-YEAR EXTENSION FOR EU DEFORESTATION COMPLIANCE AMID GALAMSEY CONCERNS

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Finance

6 months ago


Ghana’s agricultural sector, particularly its tree crop industries such as cocoa, oil palm, cashew, and coconut, has received a vital one-year reprieve following the European Union Parliament's decision to postpone the enforcement of the EU Deforestation Regulation (EUDR). Initially set to begin on December 30, 2024, the regulation’s implementation has now been rescheduled to December 30, 2025, giving Ghana’s exporters and stakeholders additional time to align with the stringent requirements.

The EUDR aims to combat deforestation by ensuring that products imported into the EU, including cocoa, are deforestation-free and not tied to illegal forest activities. While Ghana has been recognized for its proactive approach in adopting farm traceability systems, illegal mining, commonly known as galamsey, has emerged as a significant threat to the country’s compliance with the regulation. The environmental degradation caused by galamsey activities poses a severe risk to meeting the EU’s deforestation-free criteria.

For months, Ghana’s tree crop sector has been on high alert, anxiously awaiting the EU Parliament’s decision. The stakes are immense, as Ghana and Ivory Coast together account for more than 65% of the world’s cocoa production. A failure to meet the EUDR requirements could disrupt Ghana’s access to the lucrative EU market, putting the livelihoods of millions of smallholder farmers and exporters at risk.

Despite Ghana’s commendable progress in enhancing traceability systems for agricultural exports, the rising incidents of galamsey remain a formidable challenge. The destructive mining activities have not only degraded vast swathes of arable land but also contaminated water sources, further complicating efforts to maintain sustainable farming practices.

As the EU deadline approached earlier this year, industry stakeholders, including farmers’ associations and export companies, voiced concerns over their readiness to meet the new standards. The one-year grace period offers a crucial opportunity for Ghana to intensify efforts to address these challenges and strengthen compliance measures.

The government, in collaboration with industry players, has been urged to leverage this additional time to implement effective measures against galamsey and enhance support for farmers. Many smallholder farmers lack the resources and technical expertise needed to comply with the regulation independently. Sector leaders emphasize the need for increased financial support, capacity-building programs, and stricter enforcement of anti-galamsey laws to protect the environment and preserve Ghana’s agricultural reputation.

The EUDR has sparked mixed reactions across Africa and other cocoa-producing regions like Indonesia. While some stakeholders feel adequately prepared for the regulation, others have called for greater government intervention to ensure compliance. In Ghana, the grace period has been met with cautious optimism, with experts stressing that it is a temporary relief rather than a solution to the underlying issues.

The Deputy Minister of Food and Agriculture, Yaw Frimpong Addo, recently reiterated the government’s commitment to addressing these challenges. According to him, the government is exploring innovative strategies to combat galamsey, including deploying advanced monitoring technologies and strengthening community-based enforcement mechanisms. He also highlighted ongoing collaborations with international partners to support farmers in adopting sustainable agricultural practices.

The EU’s decision to grant an extension underscores the importance of maintaining Ghana’s position as a global cocoa powerhouse. However, as the new enforcement date of December 30, 2025, looms, questions remain about whether Ghana can effectively use this window to mitigate galamsey’s environmental toll and safeguard its agricultural exports.

The cocoa sector, often hailed as the backbone of Ghana’s economy, stands at a critical crossroads. Beyond its economic significance, cocoa farming is deeply intertwined with the country’s cultural and social fabric. Protecting this vital industry requires a collective effort from all stakeholders, including government agencies, private sector players, and local communities.

While the EUDR aims to promote sustainability and combat climate change, its stringent requirements have placed immense pressure on developing economies like Ghana. Balancing environmental conservation with economic development is a delicate task, particularly for a country heavily reliant on agricultural exports.

As the countdown to December 2025 begins, Ghana must act decisively to address the twin challenges of deforestation and illegal mining. The one-year grace period presents an invaluable opportunity to realign national priorities, strengthen enforcement mechanisms, and enhance support for farmers. Failure to capitalize on this extension could have far-reaching consequences for Ghana’s agricultural sector and its reputation on the global stage.

In the coming months, the spotlight will remain on Ghana’s efforts to combat galamsey and achieve compliance with the EUDR. The path ahead is fraught with challenges, but with strategic planning and collective action, Ghana can secure its place as a leader in sustainable agriculture while safeguarding the future of its cocoa industry.




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