New Forests Company (NFC) is a forest company with operations in Uganda and Tanzania. The investment will expand plantations and build new plants to produce wood products locally in East Africa.
Demand for wood is increasing across Africa, increasing pressure on natural forests and making the region dependant on imported timber products. NFC is working to reverse this trend.
The company operates FSC-certified plantations and today produces electric poles, sawn wood and pallets for regional customers. With Impact Fund Denmark’s investment, the company will expand the forest area from 30,000 to 100,000 hectares. About half of the area (50,000 hectares) is devoted to nature and biodiversity through the restoration of former natural forest areas. The new production facilities will produce plywood and glulam products, which are largely imported today.
Plantations are expected to bind around 12 million tonnes of CO2 over the lifetime of the investment, and the climate credits generated are certified to the latest international standard.
The investment is supported by EDFI Carbon Sinks, a guarantee scheme managed by EDFI Management Company and financed by the EU under the EFSD+ programme as part of the EU Global Gateway strategy.
