Criterion Africa Partners exits Ugandan timber plantation
Criterion Africa Partners (CAP), a private equity firm investing in the forestry sector in sub-Saharan Africa, has announced that its portfolio company Global Woods has completed the sale of its Uganda timber plantation to Nile Fibreboard, a local strategic buyer.
Global Woods established the 8,500-hectare pine and eucalyptus plantation in 2002 in the Kikonda Forest Reserve near Hoima. The plantation is now one of the premier forestry estates in East Africa. When it reaches full maturity, it will produce over 200,000 m3/year of pine sawlogs and eucalyptus poles for local and regional markets. Furthermore, its 8,500 hectares of plantations will have sequestered over 2.5 million tons CO2, playing an important role in global climate change mitigation.
CAP’s investment in 2015 financed the establishment of the last 3,000 hectares of plantation and supported the ongoing operation of a company which created hundreds of local jobs.
“The sale of Global Woods’ plantations to Nile Fibreboard represents a successful outcome for all stakeholders involved,” said Jim Heyes, CAP’s managing director responsible for East Africa. “CAP is pleased to be handing the reins to a family-owned local company. With their existing wood manufacturing facilities and market channels, Nile Fibreboard is well-positioned to operate the plantations sustainably for decades to come.”
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