Uganda and Tanzania: EDFI Carbon Sinks supports new investment in forestry

EDFI Carbon Sinks supports Impact Fund Denmark in a DKK 160 million investment in The New Forests Company (NFC), a forestry company operating in Uganda and Tanzania.

The investment will help expand FSC-certified plantations and build new facilities to produce timber products locally in East Africa. With Impact Fund Denmark’s investment, NFC will expand its forest area from 30,000 to 100,000 hectares. Around half of the area will be set aside for nature and biodiversity through restoration of former natural forest areas. The plantations are expected to sequester around 12 million tonnes of CO₂ over the lifetime of the investment.

The investment is supported by EDFI Carbon Sinks, a guarantee facility managed by EDFI Management Company and funded by the European Union under the European Fund for Sustainable Development Plus programme as part of the EU’s Global Gateway strategy.

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EU support to Forest-based value chains in Africa

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