IFC’s support will include assessments of environmental and social impact, community engagement, community development planning, and help with the implementation of community and enterprise investments. The agreement is the first step of a long-term collaboration, which is expected to enhance the developmental impact of Portucel’s investment and create shared growth opportunities in its concession areas in Mozambique.

José Honório, Portucel CEO, said, “Portucel is committed to the long-term success of its investment in Mozambique and we are reaching out to partner, with IFC and the World Bank Group, to help us develop forestry in Mozambique in line with the strongest international environmental and social standards.”

Jin-Yong Cai, IFC EVP and CEO said, “Mozambique needs large-scale investment to diversify its economy beyond extractive industries and create employment. IFC and our partners are working to engage with local communities and ensure that the benefits of private sector investment are broadly shared.”

Portucel has embarked on a USD 2.3 billion investment program to develop the first integrated eucalyptus plantation, pulp and energy project in Mozambique. The government has awarded Portucel land use concessions of over 356,000 ha of land in Manica and Zambezia provinces.