Jan. 30 draft; with edits by PH A REPORT ON LANDSCAPE ASSESSMENT OF FINANCIAL FLOWS (LAFF) IMPLEMENTATION TRAINING WORKSHOP 16-18 JULY, 2019, ANITA HOTEL, Kumasi, Ghana BY: PROJECT TEAM 1 Jan. 30 draft; with edits by PH 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 Wiawso Juaboso-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. 2 Jan. 30 draft; with edits by PH 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, Bodi, 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. 3 Jan. 30 draft; with edits by PH 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 4 Jan. 30 draft; with edits by PH 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. 5 Jan. 30 draft; with edits by PH 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? 6 Jan. 30 draft; with edits by PH 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