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A REPORT ON LANDSCAPE ASSESSMENT OF FINANCIAL FLOWS (LAFF) IMPLEMENTATION TRAINING WORKSHOP 16-18 JULY, 2019, ANITA HOTEL, Kumasi,

BY: PROJECT TEAM

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INTRODUCTION Collaborative landscape initiatives have demonstrated enormous potential to mobilize stakeholders across sectors, and to support them to work together toward shared objectives of landscape regeneration. This helps stakeholders meet a wide range of human needs, economic goals and ecosystem objectives.

Implementing these initiatives is challenging, however. Perspectives, values and ways of working differ greatly among partners; further, in many cases there is a legacy of misunderstanding and distrust. Strategies and tools are needed to overcome the resulting tendency for stalemate and conflict.

Tropenbos International and EcoAgriculture Partners have partnered to develop the Landscape Assessment of Financial Flows (LAFF) methodology. This practical two-phase approach helps stakeholders identify local sources of finance for new investment ideas, determine which financial flows most need transformation, and better understand the elements of a landscape’s financial context that require support.

The methodology is being piloted at Sefwi -Bia Landscape (SWJB) in Ghana. This pilot project is being supported by the Dutch Ministry of Agriculture, Nature and Food, and CGIAR’s Forest, Trees and Agriculture program.

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In July 2019 Tropenbos Ghana held a three-day LAFF training workshop in Kumasi, with support from Tropenbos International and EcoAgriculture Partners. In order to make the training as productive as possible they invited a wide range of key stakeholders:

 government agencies (Forestry Commission: Climate Change unit, Resource Management Support Centre and Forest Service Division, Ministry of Food and Agriculture);  district assemblies (Bia East, Bia West, , Juaboso);  municipal assemblies (Sefwi Wiawso);  private industry (National Tree Growers Association, Domestic Lumber Trader Association of Ghana, Domestic Lumber Millers Association of Ghana);  civil society (Solidaridad, A Rocha Ghana, SNV, Tropenbos Ghana);  research institutions (Forestry Research Institute of Ghana and Crops Research Institute of Ghana);  financial institutions (Advans Ghana); and  academia (Kwame Nkrumah University of Science and Technology). For an extensive list of participants see Annex 1.

The broad objective of the LAFF methodology is to help participants identify and characterize major flows of finance in the landscape. This process allows participants to better understand how a landscape’s financial system supports or does not support integrated landscape objectives. The methodology supports a range of stakeholders to work in landscapes toward a set of common objectives that are aligned with sustainability goals.

Stakeholders include civil society organizations (CSOs) as well as local and national government actors, development authorities, and private-sector companies. Through this methodology, stakeholders will be better able to achieve several things:

 understand the make-up of the landscape economy;  identify and understand the most important financial flows, both those that support and those that are detrimental to landscape objectives;  identify the financial resources that could support strategic projects and activities critical to sustainable landscape management;  identify the key existing financial flows that will need to be changed in order to meet landscape objectives;  identify opportunities to strengthen financial governance mechanisms for key financial flows;  identify system-wide challenges to the landscape’s financial system (e.g., key gaps in services); and  identify opportunities to better coordinate investment in the landscape.

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Workshop proceedings

DAY 1 The session opened with a prayer by Boakye, Wildlife Division. The workshop began at about 10:15 a.m.

Participants introduced themselves before the training workshop began.

A brief welcome address was delivered by the Director of Tropenbos Ghana, Mrs. Mercy Owusu Ansah.

She emphasized that the workshop provided a great opportunity to bring together all stakeholders working in the landscape. Its participatory approach would help them identify and secure the financial resources to support strategic projects and activities that are critical to the sustainability of the Juaboso- Bia and Sefwi Wiawso (JBSW) landscape.

Why it is important to understand financial flows in a landscape Facilitators: Bas and Seth Shames

Understanding the financial flows in a landscape is a first step toward identifying and shifting finance in order to better support landscape priorities.

The LAFF methodology helps to reveal any potential negative impacts from financial flows that are unfavourable to the sustainability of the landscape. Financial flows need to be designed to support landscape objectives.

Understanding the financial flows within a landscape also helps stakeholders and local communities better understand the change processes within the landscape and identify strategies to influence these processes. Identifying key landscape issues Facilitator: Lawrence

Workshop participants identified some key landscape issues:

 cocoa deforestation;  illegal mining;  illegal logging and harvesting of timber;  increase in competing land uses;  illegal farming in forest reserves;  fewer trees on farmlands outside forest reserves;  lack of coordination among stakeholders in the landscape;  poor road infrastructure;  poaching in protected areas;  declining agriculture productivity;  inefficient wood felling and processing;  land and tree tenure problems; and

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 limited livelihood opportunities. Identifying key actions Participants also identified some key actions to deal with these challenges:

 addressing governance inefficiencies;  developing effective monitoring mechanisms that include tracking of financial flows;  developing standards to regulate extension services in Ghana;  mapping of financial services for each actor in the landscape;  diversifying crops; and  addressing the problem of government contractors buying illegal logs. Question. How can the LAFF tool address general governance issues in the landscape?

Response: LAFF is a finance tool and so it is effective in specifically addressing issues related to financial governance. It also creates a “ripple effect” in overall governance in the landscape by supporting discussions of management and sustainability.

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Clarifying the landscape vision Facilitator: Bas

After discussing the district’s existing mid-term development plans, participants agreed that the main medium-term vision (2017–37) for the landscape was to reduce deforestation and carbon emissions.

Participants brainstormed to identify the landscape objectives in groups of three or four.

The groups described the vision for the landscape as follows:

 reduce deforestation and enhance forest cover, both within and outside forest reserves (including secondary forests);  conserve biodiversity (including diversification);  reduce emissions (including those from agriculture);  strengthen capacity to adapt to climate change (knowledge, technology, diversification, adoption);  achieve food and nutrition security (increase productivity diversity, accessibility, storage);  enhance livelihoods; and  enhance inclusiveness.

They identified these factors that could contribute to achieving the vision:

 food security;  diversification of groups;  planning for sustainable landscapes;  maximized synergies and trade-offs;  stopping encroachment;  greater capacity to adapt to climate change; and  reduced secondary… .

The elements of a financial flow Participants were introduced to the three elements of a financial flow:

 Financial source — this provides funds for investment, either public, private or civic.  Financial mechanisms — these are the ways in which funds flow from the source to the recipient. Examples include grants, equity investments and bank loans. The type of mechanism has implications for the type of activities that are stimulated in a particular landscape, and therefore for how, and how much, recipients can obtain from a finance source.  Recipients — these are the entities that receive funds from financial sources for investments. Examples include farmer cooperatives and farmer associations. Question. Is it possible for an organization to act as both the financial source and the financial mechanism at the same time?

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Response: It is possible, but it would depend on how the financial mechanism is defined. In some instances, organizations may be considered financial instruments because they play an intermediary role.

Financial mechanisms, financial governance and the context of the flow Facilitators: Daniel Kofi Abu, Lawrence and Bas

The facilitators introduced the concepts of financial mechanisms, financial governance and the context of financial flows to workshop participants.

Participants held landscape-level discussions on finance mechanisms and governance regimes.

Participants divided into groups. They identified actors (e.g., agencies, organizations, traditional and governmental authorities, such as Touton SA, AfDB, etc.) that are involved in financial flows that have an impact on the JBSW landscape.

Groups made presentations (using the agencies they identified as case studies) to predict financial flows and draw a clear picture of how the LAFF operates in the landscape.

Due to time constraints, the session was brought to an end, to continue the following day with further discussions on financial governance.

The meeting ended at about 4:47 p.m.

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DAY 2 Facilitator: Mercy Owusu Ansah

The session opened with a prayer and a recap of activities and lessons from the day before.

Mercy Owusu Ansah introduced the roadmap for the training. Participants were enthusiastic about the knowledge they gained in the previous day of the workshop.

Financial mechanisms, financial governance and context of the flow Facilitator: Lawrence

Following up on the previous day’s session on this topic, participants discussed the concepts of financial mechanisms, financial governance and the context of financial flows to workshop participants.

Question. How can you deal with self-financing and illegal flows in the financial flow system?

Response. Both self-financing mechanisms and illegal flows can be included in the financial flows, since they could be part of a larger flow from multiple sources.

Question. How do you control financing if it is from an informal flow?

Response. Controlling informal flows is best done through financial governance. Devising strategies to control informal flows can best be achieved by understanding, examining and reanalyzing the reality of all financial flows in the landscape.

Question. Is it okay to not include illegal informal flows for which you don’t have or can’t find a value?

Response. It is quite challenging to get complete information on all types of flows, especially illegal or informal flows. Instead of not including such flows it is advisable to consult the sector focal group in the landscape and identify the key stakeholder at the focal-group level, so that these flows can be considered.

LAFF Phase 1 Understanding the landscape economy and selecting priority sectors Facilitator: Bas

This presentation informed participants and stakeholders in the Juaboso Bia and Sefwi Wiawso (JBSW) landscape about its various economically productive sectors. The presentation also described how the financial potential of these sectors emphasize their applicability to the LAFF methodology.

Participants selected four key sectors that would be the focus of LAFF implementation in the SWJB landscape (see Annex 2):

 cocoa;  timber;  conservation; and  land use and planning (infrastructure).

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LAFF Phase 2 Setting up sector focal groups Facilitators: Seth Shames and Kwame Sekyere

Participants divided into groups and identified key informants for the various sector focal groups that operate within the JBSW landscape.

The roles of the various sector focal groups were well defined by the respective stakeholders representing these groups.

Drawing financial flow maps Facilitator: Bas

Participants were assigned to a sector group according to their expertise. In the beginning it seemed to be a bit challenging for the participants to understand what exactly was wanted from them in this exercise. Eventually all the groups prepared financial flow maps.

When presenting the maps several groups made a common mistake. Participants considered technical assistance, capacity building or similar activities by companies or organizations to be a financial flow. In fact, these activities are the result of a financial flow.

Using financial flow maps from Indonesia as examples, participants were guided to draw financial flow maps based on the sector focal groups.

Using the financial flow maps, participants learned how to prioritize financial flows within the landscape. Can we remember more about this?

Participants and facilitators reviewed the day’s session. The session ended at about 5:15 p.m.

DAY 3 Daniel Abu provided a recap of the previous day’s activities and described the day’s activities.

Select criteria and prioritize financial flows based on scoring Facilitators: Bas and Gabija

Using worksheets and guidelines, participants learned how to select criteria, based on relevance to landscape objectives. They also learned how to score these criteria (from –2 for very negative to +2 for very positive).

Participants learned how to apply the selected criteria to prioritize flows.

Participants were shown how to draw Sankey diagrams of the financial flows they identified (n Sankey diagrams the width of the arrows is proportional to the size of the flow). Participants used colour coding in the diagrams to distinguish the financial flows according to their impact on landscapes objectives.

Next steps and workshop summary Facilitators: Bas and Mercy

Participants discussed how the methodology addresses the issues identified in the beginning of the workshop.

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Participants learned how to understand actors in their landscapes by identifying their source of flows and their respective recipients in order to measure the impacts of financial investments in the sector.

The facilitators provided information about what happens next in the LAFF process, and how this information will ultimately be presented and used.

Feedback on LAFF training workshop Workshop participants gave feedback on the training.

Overall, participants perceived the training being very useful. The LAFF methodology has reshaped their thinking with regard to financial flows in their respective sectors.

Industry players and participants from research institutions stated that the lessons and insights drawn from the workshop would be very useful in increasing the effectiveness and efficiency of financial resources and investments, leading to positive changes.

The training session closed with a prayer by Mercy Owusu Ansah.

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Personal/individual feedback ‘I have been impacted with new knowledge and skills regarding financial perspective of the landscape. I think my understand of the effect of the financial flows on the landscape has really deepend. I now appreciate the way of loking at the landscape from the financial flow perspective. Gained valuable knowledge on all these aspects.’ Richard Boakye, Wildlife Division ‘Learned two things. Idea of landscape and financial flows. Timber industry has come together and the spectrum has widen. LAFF provides an idea of how to map out the flows within the sector and to rate their impacts (positive and negative).’ Afreh Boakye, Dolta ‘This tool will make a great impact. We always look at conserving biodiversity and other resources. But with this tool we can look into how financial flows actually impact the landscape that we are trying to conserve. It also allows to look at the conservation challenges from the financial perspective which should help to achieve something better.’ Christopher Dankwah, ARocha Ghana ‘We are happy to have learned about LAFF. When it comes to sourcing funds for projects, its at the top level. They are not involved on the ground. When it comes to sourcing funds, proposal writing.. we have a program MAG now, it took the ministry two years to source the funds. And the decisions are at the top level and influence them is very difficult.’ Prosper Akpablah, MoFA Extension Division ‘I will suggest my CEO to implement some impact assessment or monitoring to really see how finances have effect on environment. This training expanded my understanding beyond financial aspects of payments and returns to reach the environmental aspect as well.’ Samuel Darko, Advans Ghana ‘Very intrigued about the whole tool. I definitely learned about the landscapes and financial flows (sources, mechanisms and recipients). I will bring it back to my office and we will see how can we also do some of these conservation practices with our activities.’ Daniel Nyagorme, Department of Agric, Sefwi Wiawso ‘It is really important for us to be part of these kind of programmes. As a national association, for us it is really important to be able to prioritize and focus our moneys and energies where it should be focused. Sometimes when you don’t know these things you will notice that you are working in circles and create none or little of the impact that you were actually seeking to create. We will make sure to apply this new knowledge and put it in good use.’ Erasmus, NAHE ‘From the district assembly perspective, we thank TBI, TBG and EAP. We have been implementing forest programmes and conservation programmes, climate smart/resilient programmes. But I think that this training has enhanced our skills for planning for these programmes. Dr. Lawrence has presented precise information of what is happening on the ground.’ Abdul- Razak Monyuu, Bodi District ‘From the research perspective it is a very interesting tool, especially for me, for FoRIG. We actually work in several sectors and each time the government finds it difficult to appreciate our value, although we have a lot of impact. So last year my colleagues and I were given a task to assess the impact of the economic development of the country. And this LAFF is a very useful tool

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Summary The workshop’s participatory approach helped participants understand the LAFF methodology. Participatory exercises included listing the actors involved in financial flows in the SWJB landscape, identifying criteria, mapping the flows, studying financial interactions and assigning scores to the criteria they identified. This allowed participants to use the information they received through the presentations.

Presentations of their work allowed other participants to comment and provide suggestions. This process also provided opportunities to have a two-way discussion about the specific details of the methodology. For example, the issue of technical assistance, capacity building and similar activities (by the NGOs and companies) NOT being a financial flow came up a few times. The workshop structure allowed facilitators to have a discussion with the participants about this matter. This understanding — that technical assistance, capacity building etc. are not financial flows — is reflected in LAFF implementation in Ghana. Quite a few of the participants in the sector focus groups were trained during the LAFF training, and were able to explain it to their fellow workshop participants.

Another topic that came up at the training, and that informs LAFF implementation in the SWJB landscape, is increasing infrastructure construction in the landscape, which threatens agriculture and forest land use.

Generally, workshop participants proved to have a good understanding of the SWJB LAFF activities. However, some participants brought up the fact that they would like to have more training in LAFF, or have a certificate of completing the training.

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Evaluation report: LAFF implementation training workshop

Table 1. Overall assessment of workshop Indicator Details Overall usefulness of the workshop Participants perceived the workshop as very useful, since it to participants was interactive and educational. Extent to which workshop improved The workshop was an eye-opener for the majority of participant’s understanding of participants, since it provided information about little-known landscape finance issues details regarding financial flows in the landscape Extent to which workshop improved The workshop provided a productive atmosphere for learning participants understanding of the while offering an opportunity for knowledge sharing and LAFF methodology financial discourse using the LAFF methodology and for considerations of the flow of financial resources in the various sectors. Extent to which workshop helped The majority of participants said that the workshop had shone provide a shared understanding of more light on how to pay attention to finance for projects in key economic issues in the the landscape, with considerations of the key economic issues landscape and their respective indicators in the landscape. Extent to which participants expect Participants expected to apply the knowledge acquired from to apply the knowledge acquired in the workshop to their various sectors of work, especially in this workshop to future work the design and implementation phase of projects in the landscape in a way that supports effective financial monitoring and evaluation Satisfaction with resource materials Participants expressed satisfaction with the resource materials provided this course (readings, provided for the workshop PowerPoint slides, etc.) Satisfaction with lodging, meals, etc. Although the majority of participants expressed their for this workshop satisfaction with the accommodation, others registered some displeasure at their inability to secure accommodation at the venue.

Table 2. Evaluation of specific sessions This evaluation is based on level of usefulness: 1=not useful; 2=credit; 3=satisfactory; 4=useful; 5=very useful

Session Usefulness Why is it important to understand It informs actors about the financial potentials of the financial flows in a landscape? landscape and thus is very useful Clarifying the landscape vision Useful The elements of a financial flow Very useful Understanding the landscape Useful economy and selecting priority sectors Setting up Sector Focal Groups Very useful Drawing financial flow maps Very useful Selecting criteria to prioritize Very useful financial flows

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Selecting priority flows for further Useful analysis Conducting key informant interviews Useful for each of the flows

Table 3. General impression of the workshop Question Details What is your overall impression of Overall, participants thought the workshop was successful and the workshop? helpful since it enhanced their knowledge of the concept of financial flows What did you find most useful in the Participants thought the most useful achievements were their course and why? ability to identify the sources, mechanisms and flows in particular sectors, and their ability to determine the respective flows in order to prioritize and promote them What actions are you likely to take Participants were likely to share knowledge with colleagues on in response to your experience in the LAFF concept and methodology the course? Participants were likely to advocate for the use of LAFF in the design and implementation of projects and sectoral interventions

What roles would you play in the Participants commented that they would advocate for the LAFF process going forward? inclusion of other stakeholder institutions that were not initially captured in the process

Participants would raise awareness and provide education on LAFF Was there anything missing that you N/A would like to see included in a future workshop? Any other comments Training should be extended to other sectors of the economy, from government agencies to private firms, for more sustainable investments and for efficiency

Timber trade associations should be included in subsequent workshops Invitations should be more timely The time for group exercises should be extended and the program should be made more flexible

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Annex 1: LAFF TRAINING WORKSHO, JULY 16-18, 2019 REGISTRATION SHEET No. Name Institution/Organization 1. Prince Adu Touton S. A. 2. Christopher Dankwah A Rocha Ghana 3. Lawrence Damnyag FORIG 4. Kofi Afreh Boakye DOLTA 5. Abdullah Bin Abubakar WAG 6. Erasmus Philip Ahorlu NAHE 7. Emmanuella Ntiamoah-Sarpong RMSC-FC 8. Alex Tweneboa-Kodua FSD-FC 9. Richard Gyamfi Boakye WD-Bia 10. Gabija Pamerneckyte TBI 11. Lawrence K. Brobbey KNUST 12. Peter Kwame Amoako Dept. of Agric 13. Michael Fiifi Ampofo Arku CSIR-CRI 14. Albert Adehokey TBG 15. Daniel Kofi Abu TBG 16. Prosper Akpablah MOFA 17. Evans Sampene Mensah SNV Ghana 18. K.S. Nketiah TBG 19. Seth Kamkam Solidaridad 20. Kyere Boateng FRNR, KNUST/TBG 21. Peter Ossei-Wusu NTGA 22. Mercy Owusu Ansah TBG 23. Asante Joseph TBG 24. Richard Roy Amoah DPO 25. Doris Twumasiwaa ADPO 26. Brakoa-A. Stephanie TBG 27. Daniel Nyagorme Dept. of Agric 28. Kwame Sekyere TBG 29. Charles Sarpong Duah Forestry Commission 30. Beatrice Koromah TBG 31. Kwabena Okyere FSD 32. Samuel Darko ADVANS 33. Stephen Kusi MoFA 34. Kwame Appiah Owusu TBG 35. Gertrude Owusu TBG 36. Beatrice D. Obiri CSIR-FORIG 37. Basdiaan Louman Tropenbos NL 38. Abdul-Razak Monyuu Bodi D/A 39. Kpaniku Barata Bia West D/A 40. Issah Halidu DOLMAG 41. Blay Owusu Egya Blay Juaboso D/A 42. Micahel Poku-Marboah Touton 3 PRCL

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Annex 2

Financial flow, cocoa sector

Financial flow, timber sector

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Financial flow, conservation sector

Financial flow, land-use and planning sector (infrastructure)

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