VIP to Invest $200m on Forest in Ethiopia

VIP, a Swedish company engaged in agro forestry has announced its desire to invest in the forestry sector in Ethiopia during a press briefing it co-organized with Ministry of Foreign Affairs (MoFA) on February 6, 2015.

“As per our desire, we were working for the past seven months to prepare memorandum of understanding (MoU), which we expect to be signed soon with Ministry of Forestry and Environmental Protection (MoFEP),” said Akal Mamo, managing partner of VIP.

The company plans to launch what it calls Paulownia Forest Project, a fast growing multipurpose tree that naturally provides ethanol, which serves for hardwood timber. According to Teka, the project costs 200 million dollars and it is expected to operate in degraded lands of Oromia, Amhara, Tigray and Southern Nations, Nationalities and Peoples Region. Planting of the trees will be done in three phases. Forestry as a sector covers 90pc of Sweden’s GDP.

Moreover, profiles of three companies known to engage in diary, milk and sugar that showed interest to have a stake in the sector were mentioned. As per the press briefing, a business forum between companies from Sweden, and concerned bodies from different ministerial offices will meet together on February 10, 2015.


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