A signing event on 3 October marked the next phase of Solomon Islands’ sustainable forestry industry, celebrating New Forests’ agreement to acquire a majority stake in Kolombangara Forest Products Ltd (KFPL).
New Forests is an Australian-headquartered company that is an experienced manager of nature-based assets. It will expand into Solomon Islands through its Tropical Asia Forest Fund 2 (TAFF2).
Local landowners will continue to play a key role, with the Investment Corporation of Solomon Islands (ICSI) agreeing to transfer a 20 per cent stake in KFPL to the Kolombangara Landowners Trust Foundation.
Once the deal is complete, it will deliver modernised operations and enable the local landowners to be actively involved in shaping the company’s future.
The Australian High Commissioner, His Excellency Rod Hilton, attended the signing event and welcomed the deal as a further investment in the future of sustainable forestry in Solomon Islands, ensuring jobs and skills development for the local community.
“One of my first visits as High Commissioner was to Kolombangara, where I saw how KFPL was supporting the local community through employment, skills and infrastructure,” High Commissioner Hilton said.
“It’s great that New Forests has seen the enormous potential in KFPL and will continue to support the people of Kolombangara’s commitment to sustainable forestry.”
Through its flagship private sector program, Strongim Bisnis, Australia has a long history of partnership with KFPL. Strongim Bisnis has provided over SBD5 million to help the company expand its site access, unlock tourism opportunities, and increase value-added production, including by establishing the country’s first wooden pallet production facility.
Australia also played a further part in enabling this transaction through its close to SBD60 million investment in TAFF2 as part of the Australian Climate Finance Partnership, managed by the Asian Development Bank.
Acting Chair of Investment Corporation Solomon Islands (ICSI), Frank Wickham, congratulated the Kolombangara community.
“ICSI is proud to be transferring 20 per cent of KFPL to Kolombangara landowners, enabling them to have a greater role in the company’s future,” Mr. Wickham said.
New Forests’ Head of Emerging Markets, Geoffrey Seeto, highlighted New Forests’ expertise.
“With this investment, New Forests’ will bring its experience in modernizing forest operations, improving road and port facilities, strengthening community engagement, and implementing training programs for workers.
“I look forward to working with key stakeholders towards the final completion of the transaction,” Mr Seeto said.
Source: Australian High Commission, Solomon Islands
