Project detail - LevasFlor AB

LevasFlor AB

Status: Approved investment
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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

LevasFlor AB is the parent company of LevasFlor Lda. LevasFlor is a natural forest management company managing 46,000 Ha of natural Miombo forest in central Mozambique. It has been fully FSC certified since 2006. Operations consist of forest management (harvesting), sawmilling and carpentry. LevasFlor employs Sustainable Natural Forest Management methods, where less than 10% of forest regrowth is harvested, equating to one tree per 25 ha area per year. LevasFlor's forestry operations take place alongside working with the communities living inside and around the concession area to promote sustainable livelihoods and provide education to reduce the pressure on the Miombo forest from unplanned deforestation.

What is our funding objective?

FMO is providing funding to LevasFlor from the Mobilising Finance for Forests (MFF) Development Contribution Facility. FMO's contribution will help to finance a full feasibility study and product/market testing in order to develop a detailed business plan for a potential expansion and greater value addition to its wood products. FMO?s contribution will be up to $1,209,400.

Why do we fund this investment?

The Miombo woodlands are a significant global carbon store, are under increasing threat and are not appropriately managed and conserved, despite their importance to livelihoods, climate and biodiversity for large parts of South and Eastern Africa. LevasFlor's model of sustainable natural forest management has the potential to reduce deforestation rates in this woodland, whilst also bringing local economic development. Natural forest management is part of FMOs updated forestry strategy, however this subsector is new to FMO. This Development Contribution is one of the first careful steps that FMO is making into the sector, with the intention to build experience and relevant partnerships for future investments. Supporting LevasFlor with this project provides an opportunity for FMO's forestry team to gain deeper insight into the sector through working with a long-established, FSC-certified operator.

Website customer/investment
https://www.levasflor.com/
Region
Africa
Country
Mozambique
Sector
Agribusiness, Food & Water
Publication date
12/2/2024
Effective date
11/5/2024
Total FMO financing
USD 1.21 MLN
Funding
Mobilizing Finance for Forests