Olam International inks joint ecozone project with Gabon

The manager and producer of agri products is investing US$12 million equity in the SEZ development project for a 60% stake.

Olam International on Friday said it has entered into a strategic partnership with the government of Gabon to jointly develop a Special Economic Zone (SEZ) at Nkok for timber processing in Gabon, according to an announcement from the agri group.

Olam said in able to encourage local processing of logs and export of high value-added wood products, the government of Gabon has indicated its intention to set up an SEZ that offers developed infrastructure and fiscal incentives for the timber industry to invest in timber processing activities in the country.

The strategic partnership between Olam and the government of Gabon also paves the way for Olam to tap into new agricultural investment opportunities that fit into its long term strategic growth plan in Gabon.Olam has confirmed that it is investing US$12 million equity in the SEZ development project for a 60% stake in a joint venture vehicle while the government of Gabon holds the balance 40% interest.

Gabon is one of the key origins identified in Olam’s wood products growth strategy for accessing forestry concessions and saw milling opportunities. Olam currently owns 400,000 hectares of forestry concessions for tropical hardwoods in Gabon.

The joint development to develop an SEZ for timber processing supports the Olam’s interest to expand its forestry concessions and timber processing activities in Gabon.