Follow Us on Social Media!
Washington, DC, December 15, 2014
—IFC, a member of the World Bank Group, today signed an agreement to provide an initial investment around $30 million to support the first phase of Portucel’s integrated plantation forestry operations in Mozambique. IFC aims to be a long-term financial partner and advisor supporting the sustainability of Portucel’s long term investment in the country which will create thousands of local jobs.
Portucel and IFC are in discussions with the government on project implementation to ensure strong impact and consistency related to sector policies and agribusiness development. The project is in an early stage of development that is targeting plantation of up to 40 thousand hectares of sustainable eucalyptus plantations by the close of 2016.
Diogo da Silveira, Portucel CEO, said, “Portucel is committed to the long-term success of its investment in
Mozambique. With IFC as a financial partner, we are well positioned to develop forestry in Mozambique that can produce strong positive impacts on local communities, and ensure our project adheres to the strongest international environmental and social standards.”
Portucel has made a public commitment to establishing an innovative mosaic approach to eucalyptus plantations, integrated with improvements to community farming systems, ecosystem services, and preservation of high conservation value areas so important to local communities.
Jin-Yong Cai, IFC EVP and CEO said, “IFC is investing in Mozambique’s forestry sector to support its approach to communities and the environment, to creating thousands of jobs, and opening new opportunities for small and medium enterprises in its supply chain. This project will provide investments in infrastructure such as roads and bridges that can further improve economic prospects for rural communities.”
IFC is already cooperating with Portucel Moçambique in providing advisory services for stakeholder engagement and development of Portucel community development plan. Today’s agreement extends the relationship with IFC becoming a financial partner.
Portucel’s project contributes to diversification of Mozambique’s economy, while forests sequester carbon and create a new source of renewable energy in a region where the rapid pace of deforestation is a concern.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
Receive news and updates about IFC