DUBAI, UAE – The U.S. International Development Finance Corporation (DFC) has committed a $24 million equity investment in Miro Forestry Developments Limited (Miro) to expand the company’s sustainable forestry and timber processing on degraded land in West Africa.
This is the latest investment in DFC’s growing portfolio of nature-based solutions, an area in which the agency has established itself as an innovator. DFC has deployed its range of tools, from political risk insurance and loans to technical assistance and equity investments, into the sector. DFC is focusing on nature-based solutions as a key tool in our ongoing work to sequester carbon, strengthen communities against the worst effects of climate change, and protect fragile ecosystems.
The investment for Ghana and Sierra Leone will create jobs, increase atmospheric carbon sequestration, and contribute to economic growth in both countries. DFC Chief Executive Officer (CEO) Scott Nathan was joined by Miro CEO Andrew Collins and CFO Anthony Gaydon on the sidelines of COP28, the U.N.’s annual climate change conference, for the ceremonial signing of the commitment.
“DFC is leading on efforts to respond to the climate crisis through the financing of nature-based solutions,” DFC CEO Scott Nathan said. “Miro’s work to promote sustainable forestry on previously degraded land is helping us deliver on our climate goals while generating economic opportunity, creating jobs, and equipping communities with the tools they need for resilience.”
Anthony Gaydon, Miro Group CFO, said, “We are delighted to welcome DFC as a shareholder in Miro. DFC is a high-quality investor with a very good reputation in the regions in which we operate. With their capital and support, we can continue to expand Miro delivering a triple-bottom-line economic, social, and environmental return on investment – for the good of shareholders, the communities in which we work, and the planet.”
Miro employs more than 2,500 people which, with DFC’s support, will grow to more than 3,000. Miro has rehabilitated more degraded land to forest than any other group on the African continent over the past few years, having planted more than 20 million trees that have sequestered millions of tons of atmospheric carbon – tackling climate change efforts on a global scale.
DFC’s investment in Miro will support the expansion of its existing timber manufacturing, increasing installed output capacity to 120,000 cubic meters per year, making Miro one of the largest producers of wood panel products on the African continent.
Miro plywood and other timber products are Forestry Stewardship Council (FSC) certified – one of the highest levels of sustainability certification in the forest industry. Miro sells its sustainable timber products locally in West Africa, and exports to North America, Europe, the Middle East, and other locations, to large and mid-scale, high-quality customers. This significantly helps to displace timber products from unsustainable sources.
The U.S. International Development Finance Corporation (DFC) is the U.S. Government's development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
Miro is a vertically integrated plywood manufacturing business with operations in Ghana and Sierra Leone, West Africa. The company has developed and operates over 20,000 hectares of timberland planted by the company on degraded land areas, typically previously slashed and burnt. Miro now sustainably harvests and replants this timberland, producing sustainable timber from which the company principally manufactures plywood that it then sells globally. Alongside plywood, which is the major product, Miro also produces sawn timber products, wooden electricity transmission, and fencing poles, and generates carbon credits from its extensive tree-planting activities.