(Ecofin Agency) - The fund follows two investments already made by Criterion in Form Ghana.
Last Monday, private equity firm Criterion Africa Partners, announced it committed US$17.1 million to the Ghanaian company Form Ghana, which manages forest plantations and is involved in the reforestation of degraded forest reserves.
The investment will enable Form Ghana to enter a new phase of commercializing carbon credits and teak (wood species) to businesses. "We are very pleased with our investment in Form Ghana and look forward to supporting the company and its management team through the next phase of its development," commented Jim Heyes, Managing Director of Criterion Africa Partners.
The investment in Form Ghana is the first transaction made by Criterion this year. The private equity firm invested in the forestry management company in August 2021 and November 2022. This new financial contribution is therefore a follow-up investment.
Form Ghana, established in 2007, is a subsidiary of the Dutch company Sustainable Forestry Investments B.V. The company plans to obtain forestry certification in June of this year, which will enable it to manage its plantations sustainably and attract more investors and corporate clients beyond Ghana.
According to Criterion, demand for wood from Africa could triple by 2050, driven by population growth and urbanization, leading to higher domestic prices and imports as well as increased degradation and deforestation of forests and natural woodlands.