Forestry companies with operations in Mozambique merge

12 June 2014

The merger of the Global Solidarity Forest Fund (GSFF) with Green Resources (GR), including all assets in Mozambique, has created the biggest forestry company on the continent outside of South Africa, according to an official statement.

The new company, which was created by issuing 17.78 million new shares to be handed over to GSFF shareholders, now has over 40,000 hectares of standing forest in Mozambique, where both countries had operations, in Tanzania and in Uganda.

“This merger leaves GR in an excellent position to capitalise on more than two decades of work and to develop first arte forestry resources in East Africa,” said the chief executive and founder of Green Resources, Mads Asprem.

Green Resources is one of the largest forestry companies in Africa and is one of the main wood production companies. It was founded in 1995 as a private company in Norway and it has invested over US$125 million in its operations in Africa.

Green Resources, whose two main shareholders are the Phaunos Timber Fund with 27 percent and NewAfrica with 19 percent, has plantations in Mozambique’s Niassa and Nampula provinces.

Global Solidarity Forest Fund AB was an investment company particularly focused on Mozambican forestry sector companies. It was founded in 2006 in Hallstahammar, Sweden.

According to information taken from the Internet Global Solidarity Forest Fund’s shareholders were the Netherland’s state worker pension fund (54.5 percent), a number of Swedish and Norwegian religious organisations and US fund Diversified International Timber Holdings.

The company controlled Chikweti Forests of Niassa (28,970 hectares), Tectona Forest of Zambézia (19,540 hectares), Companhia Florestal de Messangulo and Ntacua Florestas da Zambézia (9,005 hectares). (macauhub/MZ)