UAE ambassador meets with Mozambique minister
Macauhub (File photo)
The forestry group Obtala Ltd has partnered with FundInvest, an investment company, to combat illegal logging and to promote timber processing in Mozambique, the group said in a statement issued on Tuesday in Guernsey.
FundInvest, made up of the Ministry of Land, Environment and Rural Development, will be managed under a non-binding memorandum of understanding with 51% of the joint-venture capital, with the remaining 49% to be divided into 1.0% for the group and 48% for Argento, a subsidiary of the group.
The joint-venture will operate a business for the felling, purchase, processing, export and distribution of forest products in Mozambique, with the authorisation to purchase timber from small concession holders.
The Obtala group has no plans to invest directly in the joint-venture but will be responsible for obtaining financing at preferential interest rates both from private lenders and from government entities.
It was also established that the sawmill that the group built in Nampula will grant competitive prices for processing the wood obtained by the joint-venture, and that the two entities will work together to sell processed wood, both in Mozambique and abroad.
The Obtala group, based in Guernsey, has 10 forest concessions in Mozambique covering an area of 120,000 hectares.Source: Macauhub
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