Quantum Global Group has agreed to invest approximately $50m in new plantation establishment, infrastructure and wood processing industries in Angola over the next five years.
As part of the concessional agreement, the Government of Angola has leased over 80,000 hectares of plantations and additional land bank area to the Group to develop large-scale wood fiber plantations in the Planalto region of Angola.
Through this acquisition, Quantum Global Group aims to realize risk-adjusted returns for the timberland asset class, whilst implementing sustainable forestry practices and facilitating conservation protection on the investments. Martin Bachmann, Head of Active Management, Quantum Global Group, said: “Quantum Global Group firmly believes that timberland investment is core to promoting rural economic development, employment and social-economic development, and the Group is fully committed to the ethical conduct in its business.”
“With this overarching objective in mind, the Group aims to promote sustainable forestry practices to support the local communities through various skills development programs along with ensuring measures that protect the natural habitat. Our timberland investments aim to be third-party certified by the Forest Stewardship Council,” he added.
The region of Planalto has an exceptional combination of large areas of underutilized fertile land, very little natural forests, low population pressure, access to transport infrastructure and sufficient water resources, which enables the development of large-scale wood fiber plantations.
Furthermore, the area has existing plantations that can support the early establishment of wood processing industries in the area and contribute in the creation of industrial employment and a forest industry based cluster.
Investments into timberland will bring much needed long term stability and jobs into the underserved rural communities. Source: Asoko Insight