FMO, the Dutch Entrepreneurial Development Bank, manages Mobilising Finance for Forests (MFF) on behalf of the UK Government and the Dutch Ministry of Foreign Affairs. MFF seeks to mobilize private investment into forests and sustainable land use through catalytic capital and commercially viable investment approaches that contribute to climate, biodiversity and development objectives.
Africa presents a significant opportunity for sustainable forestry investment. Growing demand for timber and wood products, favourable growing conditions and the need to reduce pressure on natural forests provide a strong rationale for expanding sustainable forestry and local wood processing. Done sustainably, this can support employment, rural livelihoods and economic activity across the forestry value chain.
At the same time, the sector continues to attract limited institutional capital. Forestry requires long-term capital and specialist expertise, while challenging operating environments, perceived country and sector risks, and a relatively limited pool of experienced managers and investors can constrain investment at scale. FMO sees an opportunity to help bridge this gap and build on its longstanding commitment to sustainable forestry in Africa.
Through this RfP, FMO is seeking a fund manager with the experience and capabilities to develop a commercially viable forestry fund for Sub-Saharan Africa. The fund is expected to invest across sustainable forestry and the wider forestry value chain, including an allocation to forest-related carbon projects, combining financial returns with environmental and development impact.
