Criterion invests in opportunities across the forestry value chain rather than focusing solely on the biological asset.
The team acquires and develops assets in three core areas:
Plantation Acquisition
and Rehabilitation
- 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.
Downstream
Manufacturing
- 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.
Biomass Energy
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.