African Palm Corp., a US based organization with an interest in sustainable extraction, processing, and commercialization of products derived from African palm oil is set to launch operation in Guinea-Bissau in May 2018 where it has access to a total of 1.5 million hectares dedicated to African palm trees and plans to expand to seven million hectares across West Africa in the next five years.
The installation of African Palm Corp.’s operations means a considerable investment for numerous West African countries and creates a regional cluster that competes with Indonesian and Malaysian palm oil which currently dominates the industry.
The income generated from the operations of each African country will contribute to the annual growth of their Gross Domestic Product (GDP).
In the case of Guinea-Bissau, it is projected that the operation of African Palm Corp. will result in a 50 percent increase in its GDP, a reduction of 4.3 percent in its unemployment rate, 39,000 new direct and indirect jobs, and an increase in its public budget from a deficit of 2.4 percent to a surplus of 2 percent.
“We are pleased to enter the Palm Oil industry with a sustainable business model that will not only provide economic growth for our partners, but also generate high returns for our investors,” said Oscar Faria, President and CEO of African Palm Corp. “Our palm oil will be certified by a series of principles equivalent to those of the Roundtable for Sustainable Palm Oil, which means consumers can enjoy a high-quality product that respects the local traditions and cultures of the farmers harvesting the fruit.”
Globally, the demand for palm oil has increased drastically in the last 20 years, going from 15 million metric tons per year in 1995 to over 65 million in 2015. As the demand has made substantial growth around the world, buyers have also become more conscious to high quality products that support sustainable farming methods and the local communities that will be impacted by the new business.
African Palm Corp., with support from UK based insurance broker and Lloyds of London, has designed and implemented a solid business model that guarantees investors the viability and profitability of the business.
APC’s A-Grade ranking from Lloyds ensures total annual profits, regardless of any political changes or climatic conditions that could affect the production and sales of the oil.
This native West African plant grows naturally in the wild, as opposed to Indonesian and Malaysian palm trees, making the company’s impact on the environment minimal. Prior to the start of its operations, African Palm Corp. signed working agreements with local ethnic groups to collaborate in harvesting the fruit from the African palm tree.
In addition to commercial transactions, 10 percent of African Palm Corp.’s annual net profit will be directly invested in social infrastructure projects such as schools, medical centers, and roads, reflecting the specific needs of each local community.
Additionally, all the technical infrastructure that African Palm Corp. develops as part of the company’s logistical needs, such as electricity, access to potable water, roads, and docks, will be available and accessible to the local communities.
Lastly, most of the direct and indirect jobs created as a result of APC’s operation will be assigned to local community members and leaders.