With the financing, Miro will be able to restore degraged land, expand its planted area and set up new plywood and pole production facilities. The other investors in the transaction were FMO, the Dutch Fund for Climate and Development (DFCD), CDC and Finnfund.
Many of the natural forests of West Africa have disappeared while the population continues to grow, keeping demand for wood high. Remaining forest resources cannot sustainably satisfy demand. Miro’s timber plantations increase supply while conserving environmentally-sensitive areas. It has already planted more than 17,000 hectares of FSC-certified eucalyptus, acacia, gmelina and teak across Ghana and Sierra Leone.
With the funding, Miro can build industrial capacities using a steady flow of wood which can be converted into high value-added products such as plywood and poles. In the process, Miro is expected to sequester approximately 10m tons of CO2 over the next decade and create over 2,000 jobs in Ghana and Sierra Leone.1
Gautier Quéru, Director of Mirova’s Land Degradation Neutrality strategy,2 says: “The development of sustainable forestry in Africa is key for job creation in surrounding communities, CO2 sequestration and reducing deforestation”.
Miro is a bellwether for the sub-Saharan African sustainable forestry and timber products industry, which requires greater investment to ensure that successful operators producing certified timber products can produce sustainable economic returns and tangible impacts.
Miro generates positive social impact by creating local jobs, training and personal development opportunities, protecting rural communities and improving livelihoods. The company educates local communities to protect their own environment, including forests. In the next two years, the company will implement an outgrower scheme which involves at least 500 smallholder farmers and community members.
For further reading:
- Mirova Funds Kenyan Smallholder Farmers
- First Investment and First Strategic Board Meeting for the LDN Fund
- Sustainable risk-adjusted returns, through sustainable land use and natural capital
- Finance Can and Must Play its Role in Fighting Land Degradation
- Mirova Among the ImpactAssets 50 for its Natural Capital Activities
- Acquisition of Althelia Ecosphere
- What is Natural Capital (VIDEO)?
2 Investment in this strategy is exposed to risks, including the risk of capital loss.
Mirova is a partner of the UN in its efforts to help protect the natural world. Mirova’s Land Degradation Neutrality strategy was set up in conjunction with the United Nations Convention to make long-term investments in sustainable land management and in natural capital projects worldwide.
The strategy has attracted strong support from public investors including the European Investment Bank, Agence Française de Développement, Gouvernement du Grand-Duché de Luxembourg and UK Secretary of State for Environment, Food and Rural Affairs.
Mirova Natural Capital Limited
UK Private limited company
Company registration number: 7740692 – Authorized and Regulated by the Financial Conduct Authority ("FCA")
Registered office: 18 St. Swithin's Lane, London, England, EC4N 8AD.
The services of Mirova Natural Capital Limited are only available to professional clients and eligible counterparties. They are not available to retail clients.
Mirova Natural Capital Limited is wholly owned by Mirova.
Portfolio management company - French Public Limited liability company
Regulated by AMF under n°GP 02-014
RCS Paris n°394 648 216
Registered Office: 59, Avenue Pierre Mendes France – 75013 – Paris
Mirova is an affiliate of Natixis Investment Managers.
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.