Arbaro and Ecuadorian Ministry of Agriculture and Livestock sign letter of intent promoting sustainable forestry development
Frankfurt am Main, 04 January 2020 – Arbaro Advisors (Arbaro) and the government of Ecuador, represented by the Minister of Agriculture and Livestock, Xavier Lazo, have signed a letter of intent facilitating Arbaro’s investment of up to USD 25 million in commercial sustainable forestry projects. The agreement will enable Arbaro to pursue its mission of environmental and social benefits while channelling investments into emerging markets.
Ecuador’s forests, some of the most biodiverse areas of the world, comprise 50% of the country’s total land area. Approximately 160,000 hectares are commercial forest plantations, generating more than 110,000 jobs. However, the country has also suffered from deforestation in recent years, due in part to illegal logging for timber. Arbaro, an investment advisor dedicated exclusively to sustainable timber production, plans to make investments in Ecuador that relieve pressure on natural forests, sequester carbon, and create employment in rural areas, while generating a return for its investors.
“This new cooperation with the Ecuadorian government will go a long way in developing the local timber industry in a sustainable manner. We are very grateful to be able to work collaboratively with the local forestry units in identifying and implementing sustainable forestry projects that contribute to job creation and economic growth,” said Marco Kaiser, Managing Director of Arbaro Advisors GmbH.
Xavier Lazo, Minister of Agriculture and Livestock in Ecuador stated: “We are excited about this agreement with Arbaro, as there is vast untapped potential for environmentally friendly timber cultivation in our country. We believe that with a fund focused on creating a positive social and environmental impact, we can grow and diversify the sector sustainably.”
About Arbaro Advisors GmbH
Arbaro Advisors GmbH is a Frankfurt-based investment advisory company jointly established by Finance in Motion and the UNIQUE Group. This unmatched combination of expertise in impact investing and forestry management enables Arbaro Advisors to select and develop sustainable forestry investments that maximize environmental, social, and economic benefits for all stakeholders. Arbaro acts as investment advisor to the Arbaro Fund which invests in sustainable forestry projects in Latin America, the Caribbean, and Sub-Saharan Africa, in countries where biophysical growth conditions for forests are ideal. By establishing a renewable resource through sustainably managed and FSC-certified forest plantations, Arbaro provides significant mitigation and adaptation benefits in its target countries. By supporting the development of the sustainable forestry sector in its target countries, Arbaro contributes to overall economic development while earning positive returns for its investors.
Arbaro is supported by the European Investment Bank as anchor investor, the Finnish Fund for Industrial Cooperation as an experienced forestry investor, and private-sector investors including fair-finance Vorsorgekasse, GLS Treuhand, and Girteka Logistics.
For more information, visit www.arbaro-advisors.com
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