Africa Sustainable Forestry Fund II
Kevin Tidwell
GEF Management Corp.
5471 Wisconsin Ave., Suite 300
Chevy Chase, MD 20815
www.globalenvironmentfund.com
February 2014
Africa’s stagnant forestry supply is being eclipsed by steady demand growth
Divergent Demand/Supply
Dynamics
Demand: Strong industrial
wood demand (~7% p.a.) in
addition to steady fuelwood
demand (2% p.a.)
Supply: Natural forest stock
fixed and only small growth
from plantations (~1% per
year) due to lack of investment
Demand-Supply of Wood in Africa (million m3)
How will supply cover demand growth of 2.6% p.a.?
1,200
1,000
800
600
400
200
0
2010
2015
Natural Forests, Sustainable
Supply Gap (+14% p.a.)
2020
2025
2030
Natural Forest, Unsustainable
Industrial Plantations (+3% p.a.)
Source: Food and Agricultural Organization, Indufor, and GEF Estimates
This growing supply gap leads to increases in prices, imports and deforestation
1
Proprietary and Confidential
GEF has a long-term, sustainable comparative advantage in African timber
•
GEF has a successful history in African forestry investments since 2001
•
Our team and network are the strongest and most experienced on the continent
with backgrounds in finance, forestry, milling and biomass energy.
•
GEF benefits from very limited competition and deep proprietary information;
currently allowing us to buy quality assets at less than half of replacement cost
•
Proven ability to de-risk assets through silviculture, fire management, planning
and manufacturing partnerships.
•
Strong base of people, skills and assets to build on. With 100,000 planted
hectares, we are already the largest owner of non-pulp forestry assets in Africa.
Vision: Combine ASFF I and II and target 250,000 planted hectares of plantations
that best capitalize on a growing supply/demand imbalance. This “Pan-African
Forestry Company” will be well-diversified with mitigated risks to offer a wide
range of exit opportunities for ASFF investors.
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Proprietary and Confidential