NEW FORESTS COMPANY LTD.
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
The New Forests Company (NFC) is an African forestry company. Over the past 10 years, NFC has built up strong presence in the East African forestry sector where it has been supplying the pole sector predominantly through third party supplies. In parallel it has built up a strong land bank of 51,744 hectares and has grown the size of its plantations to a total of 26,656 hectares in Eastern Africa (Tanzania, Uganda and Rwanda).
What is our funding objective?
The project’s objective is to professionalize and scale up NFC’s piloted ‘payment for ecosystem services (PES)’ program at its current plantation in Kirinya, to two additional plantations and the pole plant in Central Uganda in order to improve the risk management by decreasing theft, fire, grazing and cultivation on these properties. NFC’s PES program incentivises the rural communities living in the vicinity of the plantations to take more ownership of their environment by advancing cash payments (debt capacity) on a more regular basis. Hence the PES will help NFC to mitigate its environmental risks as well as operational risks while a more regular income through the PES system will improve the communities’ livelihoods.
Why do we fund this investment?
This project is aligned with FMO’s MASSIF strategy as the PES program set up by NFC is an innovative market based approach to mitigate environmental-, operational and reputational risks faced by NFC’s plantations. It’s an innovative way to align the local community’s interests with NFC’s objectives and creates additional value for all stakeholders involved.
More investments
| Date | Total FMO financing |
|---|---|
| 7/17/2015 | USD 10.00 MLN |
- Region
- Africa
- Country
- Uganda
- Sector
- Agribusiness, Food & Water
- Effective date
- 12/15/2017
- Total FMO financing
- EUR 0.44 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A