KENYA: $28 million is raised by Komaza to expand forest plantations
Posted on : Monday, 26th October 2020
The Komaza logging company has recently concluded a Class B fundraising campaign that raised USD 28 million. The money will be used to grow forest plantations for sustainable timber harvesting.
Sustainable timber harvesting in Kenya could have a promising future. Such is the vision that underlies the financial activity that Komaza has recently concluded. The logging company raised USD 28 million to extend its activities in Kenya and elsewhere in Africa. In rural Kenya, the organization is working with small-scale farmers to plant trees to be sold as'sustainable timber.
Komaza signs a contract with a tree planter to help them in the process, from supplying seedlings and other inputs for tree planting to woodcutting. The fundraising of Komaza was coordinated by AXA Investment Managers of Novastar LP through its AXA Impact Fund: Environment & Biodiversity; as well as by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), the Dutch development finance firm. The financial corporation Mirova also engaged in the financial mobilization of Komaza through the Land Depletion Neutrality Fund.
Komaza was preparing to raise USD 30 million as part of a Class B fundraising program. Eventually, the timber firm raised USD 28 million in venture investments. The funds will be used to establish two sustainable processing sites for timber. The company also plans to develop a factory for the development of "sustainable and high-quality" construction materials. It also aims to create a smartphone application to improve farmers' access to the best tree planting practices.
Komaza also included in its requirements a pilot remote sensing project for the automatic tracking of its farms. "For every hectare of habitat destroyed on the Kenyan coast, more animals are destroyed than anywhere else on the world. In order to face these obstacles, innovative businesses need to struggle to generate value and match rewards for strategies that function for both people and the planet. At Komaza, our goal is to become Africa's largest forestry firm, working for farmers to provide sustainable and hyper-scattering strategies.
With 100 employees employed at its headquarters in Kilifi, Kenya and elsewhere in the region, Komaza has already planted more than 2 million trees thanks to more than 6,000 farmers in Kenya. Much of its plantations are situated in the county of Kilifi. But the organization aims to extend to other counties, including Kwale, in the southeast of the country. Komaza is preparing to grow 1 billion trees with 1 million farmers in more than 10 African countries by 2030.
