GAI News staff
Through negotiations with the Angolan government, Quantum Global Group announced it has secured a 60-year lease on 80,000 hectares of plantations and additional land in Angola’s Planalto region that the group plans to develop into wood fiber plantations.
Quantum, which has established a private equity arm that manages a family of funds targeting direct investments across Africa in the key growth industries of agriculture, timber, infrastructure, mining, healthcare, and hospitality, plans to invest $50 million into the project which will see the development of new large-scale wood fiber plantations, associated infrastructure, and wood processing facilities over the next five years.
“Quantum Global Group firmly believes that timberland investment is core to promoting rural economic development, employment and social-economic development,” said Martin Bachmann, Head of Active Management, Quantum Global Group in a company statement.
Just weeks ago, the Mauritius-registered private equity group announced its planned expansion across the African continent and the Middle East.
Under its expansionary plans, the firm will establish offices in the key African markets of Angola, Kenya, Mozambique, and Nigeria, and has already started regulatory procedures to open an office in Dubai. The Dubai office will offer financial advisory service to Middle Eastern and Asian investors that are looking to leverage the potential for growth across the African continent. The firm will expand its services offered at its African locations to include the active sourcing of deals, managing each office’s private equity investments, and financial advisory services.
The region of Planalto has a low population, a large area of fertile land that is not being used to its potential, and few natural forests. The area also boasts good sources of water and available access to transport infrastructure. It also is home to existing wood fiber plantations that can integrate into the supply chain by using the services of a newly established wood processing industry – all factors that contribute to Planalto being an optimum location for such a project.
“…the Group is fully committed to the ethical conduct in its business,” notes Bachmann. “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.”