We aim to combine reforestation of important hardwood forests with impressive (and ethical) returns for investors. We invest in well managed teak plantations that are part of important reforestation schemes in Ghana and which make a valuable contribution to the fight against climate change. At the same time, investing in teak is also an extremely reliable investment both because of the current high value of the hardwood timber and also because of the perfect growing conditions for Teak in our plantation locations.
Thomtax work with the Forestry Commission in Ghana according to the strict regulations of their Natural Resource Management Program to ensure excellent forest husbandry and encourage biodiversity and regeneration.
There has never been a better time to invest in timber, and in teak in particular. Climate change is the number one challenge in the world today and reforestation is seen as a major weapon in the fight against climate change. In recent years, the demand for timber has not kept pace with the growth of new forest plantations
Our Plantation sits in the perfect climate for growing commercial and well-managed tropical hardwood. With two rainy seasons, ideal terrain and well managed forests our plantations in Ghana guarantee year-round growth.
There has never been a better time to invest in timber, and in teak in particular. Climate change is the number one challenge in the world today and reforestation is seen as a major weapon in the fight against climate change. In recent years, the demand for timber has not kept pace with the growth of new forest plantations. Our planet’s forests were being chopped down at a ridiculously high rate as the population, and the demand for timber, kept growing. Now, with one eye on climate change and the other on a population expected to swell to 9.7 billion people by 2050, it is more urgent than ever that we find a way to repopulate the planet with enough trees so that we can both fight climate change and simultaneously, manage our use of timber.
This is where Reforestation comes in. Reforestation is an initiative that most countries are joining which aims to restore and then maintain the correct ecological balance and allow the forests of the world to soak up some of the CO2 contributing to climate change. Planting forests has been identified as one of the best (and simplest) ways to fight climate change and consequently, large numbers of NGO’s, local communities and charities are working alongside governments and private commercial enterprises towards mass reforestation. This began in 2016 when the Secretary General of the UN issued a call to arms regarding the depletion of forests around the world and emphasised the interdependence of forests, life on earth and global climate stability. The UN then outlined sustainable development goals for safeguarding forests and our teak investment is managed according to those development goals. Your investment will be part of an important and sustainable cooperation between the Forestry Commission in Ghana, the local forest community and businesses such as ours which invest in sustainable teak timber.
In addition to contributing to an important asset for the planet you will also be buying an incredibly reliable and profitable investment. Teak has been in constant demand for decades and that demand grows every year to keep pace with the growing world population. Why is teak in such demand? Because it is considered to be some of the finest quality timber in the world, a hardwood that is used to make everything from boat decking to telegraph poles to high end furniture and which, thanks to its resistance to water, fire and termites, is used in construction all over the world.
Because of this reliability it has a long and established track record of growth for investors. From 1975 through to 2005, for example, teak increased in value by 8.5%. However, in the current climate the prevailing view is that returns will be much higher. According to the International Tropical Timber Organisation, plantation growth in the next few years is expected to be in the region of 18-24% per annum. Nor will that be a flash in the pan. The global demand for teak is constantly growing, whilst supply has gone down. Despite best efforts, teak trees have, in recent years, been cut down at a far higher rate than they have been planted (estimates vary from 8 to 12 times as much teak being cut as planted.) What this means is that our investors can be confident that teak values will continue to rise in the coming months and years.
We partner with established plantations in Ghana who have, to date, planted over 4 million teak trees on degraded forestland (classified as such by the United Nations.) We invest in a 36,000 acre site in Ghana and work within a partnership between ourselves as investors, the local community and the Ghana Forestry Commission which has been going for over 50 years. Doing this allows for the employment of over 1000 workers in the area at peak season, bringing training and employment to the local forest community. This partnership has therefore created an extremely important balance between a successful and profitable long-term business, the replanting of degraded forests and also, reliable long-term jobs for people in the forest community – what the United Nations has referred to as the purest form of aid.
Here in the UK, such partnerships are now being recognised as essential by the UK government in its promotion of reforestation. The combination of long-term benefits for a local community, an environmentally friendly business that helps combat climate change and a profitable (but sustainable) business are irresistible.