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GEF Management Corp.5471 Wisconsin Ave., Suite 300Chevy Chase, MD 20815www.globalenvironmentfund.com
Africa Sustainable Forestry Fund IIKevin Tidwell
February 2014
Proprietary and Confidential
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Demand-Supply of Wood in Africa (million m3)How will supply cover demand growth of 2.6%
p.a.?
Natural Forests, Sustainable Natural Forest, UnsustainableSupply Gap (+14% p.a.) Industrial Plantations (+3% p.a.)
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Africa’s stagnant forestry supply is being eclipsed by steady demand growth
This growing supply gap leads to increases in prices, imports and deforestation
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
Source: Food and Agricultural Organization, Indufor, and GEF Estimates
Proprietary and Confidential
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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.