Impact Fund Denmark Allocates $25 Million to NFC for Forestry Expansion in East Africa
Impact Fund Denmark's $25 million investment in NFC aims to enhance sustainable forestry operations in Uganda and Tanzania. This financing will enable NFC to expand its forest estate, creating jobs and increasing local timber production amidst rising demand.
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Impact Fund Denmark has invested $25 million in NFC to support the expansion of its operations in Uganda and Tanzania. This capital is intended to increase NFC's forest estate from 30,000 hectares to 100,000 hectares and to develop new timber-processing facilities locally.
The investment aims to bolster domestic timber production, reducing reliance on imports and fostering industrial growth, job creation, and increased tax revenues in East Africa. Demand for timber continues to rise as urbanization progresses, particularly for utility poles and construction materials.
NFC, established in 2004, manages certified plantation forests and conservation areas that promote biodiversity and carbon sequestration. This investment reflects a growing interest from development finance institutions in forestry as a viable economic and climate strategy.
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