Chainsaw milling activities became widespread in Ghana in the 1980s when an economic recession caused a decline in lumber production from sawmills. It is thought to offer socio-economic benefits to local people through cheap access to lumber on the local market, because of employment opportunities in areas where employment is scarce and because it is a way to increase the benefits gained from trees on farms. But yet, this practice is perceived by many people, including decision-makers, as harmful to the environment, very wasteful, and producing low quality timber.

The government of Ghana attempted to regulate the operations in 1991 by mandating the registration of chainsaws with District Assemblies and by requiring permits for tree felling by District Forestry Officers. But this attempt to regularize chainsaw milling activities failed. In 1998 the government outlawed the production, sale and use of chain-sawn lumber in Ghana. This ban has been ineffective to date. The majority of the lumber sold in domestic markets continues to be sourced from chainsaw operators.

In November 2009, a Voluntary Partnership Agreement (VPA) between the government of Ghana and the EU was ratified, aiming for the legal production of timber. This agreement includes the production for the domestic market which is supplied for more than 80 percent by chainsaw milled lumber. Since the production of and trade in chainsaw lumber is illegal in Ghana, the implementation of the VPA might have a significant impact on local livelihoods and on timber production in Ghana. It is feared that measures to regularize the forest industry will lead to a crackdown on chainsaw lumbering, potentially leading to increased incidence of poverty and conflicts.

The EU chainsaw milling project in Ghana will provide valuable information and analyses of the chainsaw lumber production and trade. Stakeholders will be engaged in developing mutually acceptable solutions to the problems associated with chainsaw milling. A multi-stakeholder dialogue powered with sound information from research activities will be initiated to reduce conflict and develop national consensus for addressing problems related to chainsaw milling. Outcomes from this multi-stakeholder process will be piloted in 8 communities in Ghana: Goaso and Sunyani in the Brong Ahafo Region, Nkawie and Juaso in the Ashanti Region, Begoro, Kade and Akim Oda in the Eastern Region and Assin Foso in the Central Region.