U.S. Development Finance Corporation Commits $24 Million Investment in Miro Forestry for Sustainable Forestry Expansion in West Africa
The U.S. International Development Finance Corporation (DFC) has pledged a $24 million equity investment in Miro Forestry Developments Limited (Miro), aiming to support the expansion of sustainable forestry and timber processing on degraded land in West Africa. This commitment is part of DFC’s efforts to promote nature-based solutions, focusing on carbon sequestration, community resilience, and ecosystem protection.
Key Points:
- DFC’s Commitment:
- The U.S. DFC is committing a $24 million equity investment in Miro Forestry to advance sustainable forestry and timber processing in Ghana and Sierra Leone.
- This investment aligns with DFC’s strategy to support nature-based solutions as a tool for carbon sequestration, climate change mitigation, and community development.
- Nature-Based Solutions Focus:
- DFC has emerged as an innovator in nature-based solutions, deploying various financial tools, including equity investments, loans, technical assistance, and political risk insurance.
- The nature-based solutions approach aims to address climate change challenges, strengthen communities, and protect ecosystems.
- Impact on Ghana and Sierra Leone:
- The investment is expected to create jobs, enhance atmospheric carbon sequestration, and contribute to economic growth in both Ghana and Sierra Leone.
- Miro Forestry’s work involves rehabilitating degraded land, planting trees, and promoting sustainable forestry practices.
- Signing Ceremony at COP28:
- The commitment was ceremonially signed on the sidelines of COP28, the U.N.’s annual climate change conference, by DFC CEO Scott Nathan, Miro CEO Andrew Collins, and CFO Anthony Gaydon.
- Miro Forestry’s Efforts:
- Miro Forestry, with over 2,500 employees, has rehabilitated more degraded land to forest than any other group in Africa in recent years, planting over 20 million trees.
- The company’s sustainable timber products, including plywood, are Forestry Stewardship Council (FSC) certified.
- Sustainable Timber Production:
- DFC’s investment will support the expansion of Miro’s timber manufacturing, increasing installed output capacity to 120,000 cubic meters per year.
- Miro aims to become one of the largest producers of wood panel products on the African continent.
- Global Reach and Certification:
- Miro sells its sustainable timber products locally in West Africa and exports to various regions, including North America, Europe, and the Middle East.
- The company’s timber products hold Forestry Stewardship Council (FSC) certification, signifying a high level of sustainability.
Conclusion: The commitment from the U.S. DFC to invest in Miro Forestry underscores the significance of nature-based solutions in addressing climate change and fostering sustainable development. The partnership aims to support Miro’s efforts in sustainable forestry, job creation, and economic growth in West Africa, contributing to broader environmental and social goals.
