- Despite long-term growth forecasts for timber products, capital investment into plantations in Sub-Saharan Africa remains low.
- Asymmetric information and limited capital have created a highly fragmented market.
- CAP creates value at the portfolio company level by improving forest resource productivity and matching harvested wood with appropriate manufacturing to supply markets where demand and profit margins are compelling.
- In Africa, demand for basic wood products – such as lumber, plywood, utility poles and composite panels – is driven by population growth, urbanization, and the emerging middle class.
- Many plantations are unable to capitalize on this demand because they are not linked to end markets through adequate manufacturing capacity.
- CAP is increasing local production of high margin forest products, reducing Africa’s nearly $1 billion of imports annually from Asia and Latin America, and thereby strengthening local economies.
Replacing Fossil Fuels
- Biomass is and will continue to replace fossil fuels in energy intensive industries in Africa.
- In food processing, manufacturing, and agriculture, biomass produces high quality steam and electricity for blue-chip customers to reduce their costs and environmental impact.
- CAP is developing a portfolio of biomass energy projects with long-term off-take agreements with some of the most prominent companies in Sub-Saharan Africa.