World Bank Backs Liberia’s Pivot from Log Exports to Domestic Mills

Liberia loses 30,000 hectares of forest each year — and FDA officials are back from Accra after seeing Ghana's 2,000-worker mills first hand, with the Upper Guinea Forest in the balance.


Fri 08 May 26

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Liberia is shifting away from unprocessed log exports toward value-added domestic timber processing, with the country’s Forest Development Authority (FDA) treating the move as the route to formal jobs in a sector that already employs about 40,000 workers and contributes 10 per cent to GDP. That is according to the World Bank, which is backing the strategy through its Liberia Sustainable Forest Economy Project (LiFE-P) and a recent South-South Knowledge Exchange between the FDA and the Ghana Forestry Commission.

The exchange, supported by the multi-donor PROGREEN Trust Fund, saw FDA officials tour private operators in Ghana that have built sustained employment under a clear regulatory framework, including one foreign-owned processing facility that reportedly employs more than 2,000 people, 40 per cent of them women. That single facility has become the benchmark Liberia is working towards as it weighs how to convert standing forest into formal-sector jobs without accelerating the deforestation already running at 30,000 hectares per year.

Liberia retains 69 per cent of its land under forest cover and is home to the last great stronghold of the Upper Guinea Forest, a globally irreplaceable ecosystem stretching across West Africa. Half its population lives within two and a half kilometres of a forest, seven in ten households collect forest products to eat or sell, and the sector formally employs about 40,000 workers whilst contributing a tenth of GDP.

Government as enabler, not operator

The central lesson from the Accra exchange is that private operators working within a clear regulatory framework have outperformed government-owned mills on employment, retention and output, with the World Bank concluding that the FDA’s role is to set the rules and resolve bottlenecks whilst the private sector runs commercial operations. That model only holds, however, when the fundamentals are locked in first.

Wood Central understands the LiFE-P framework hinges on a hard sequencing rule, with rules, leases, traceability and community benefit-sharing all locked in before processing capacity scales rather than bolted on once the mills are running. The bank’s design prioritises public-private partnership structures and long-term leases over Community Forest Management Agreements that already define community land rights, with a market-led strategy that starts with validated buyer demand and infrastructure investment running parallel to the mills.

Each of those conditions addresses a known fault line in West African forestry, and the cost of getting them wrong is already well-documented across the sub-region. Traceability gaps let illegal logging enter the supply chain and lock domestic operators out of the premium-market certifications that make value-added processing economic, whilst weak community benefit-sharing strips the people living beside concessions of any reason to keep forests intact — what the bank repeatedly describes as the most durable defence against illegal harvesting.

It comes as the World Bank has set out to make job creation an explicit aim across its lending portfolio, with more than 1.2 billion young people in developing countries set to reach working age in the next decade. Liberia exported 187,000 cubic metres of round logs against just 185 cubic metres of sawnwood in 2018, with the FDA now working through the LiFE-P framework to scope the resource allocation procedures, manuals of procedures and public-private partnership rules the bank’s appraisal identifies as absent from the country’s timber subsector.

Please note: Wood Central has written this article drawing on extracts from the World Bank’s 7 May 2026 brief.

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  • MASTER BRAND MARK POS RGB e1676449549955

    Wood Central is Australia’s first and only dedicated platform covering wood-based media across all digital platforms. Our vision is to develop an integrated platform for media, events, education, and products that connect, inform, and inspire the people and organisations who work in and promote forestry, timber, and fibre.

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