Africa Forestry Fund III Limited
Status: Proposed 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
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
The Africa Forestry Fund III (AFF III) is a private equity fund seeking to continue the strategy that AFF II and AFF I implemented. The Fund will acquire and develop attractive assets across the forestry value chain in Africa, from plantations and natural forest management to industrial operations. Key objectives are producing high-value building materials and implementing tailor-made biomass energy solutions. The Fund will capitalize on the investment team’s experience, network, and platform to acquire and improve the management of FSC-certified plantation assets and develop downstream manufacturing operations to produce forest products needed to meet demand driven by increased urbanization and accelerating economic growth in Africa.
What is our funding objective?
FMO will invest equity as a limited partner in the Fund. It has been well documented that investing in forestry and forestry-related activities contributes significantly to carbon sequestration. The investment will further contribute to decent work and job creation.
Why do we want to fund this investment?
AFF III clearly fits FMO’s forestry strategy and climate ambitions. FMO’s commitment will allow the fund to mobilize investments and reach its target size, leading to both commercially attractive returns and material climate and ecosystem benefits at scale. The investment is expected to qualify for a 100% Green label.
What is the Environmental and Social categorization rationale?
This is considered an Environment and Social (E&S) category-A investment. The fund has the mandate to invest in plantation forestry companies, industrial forestry assets, and companies engaged in natural forest management in sub-Saharan Africa. Both these forestry sectors could potentially trigger all IFC Performance Standards, hence the E&S risk category A.
- Website customer/investment
- https://www.criterionafrica.com/
- Region
- Africa
- Country
- Africa
- Sector
- Agribusiness, Food & Water
- Publication date
- 1/31/2025
- Deadline for feedback
- 4/1/2025
- Total FMO financing
- USD 30.00 MLN
- Funding
- Mobilizing Finance for Forests
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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