IFM Partners with International Investors to Develop Large-Scale Carbon Sink Project in Sofala Province

In February 2025, Investimento Florestal de Moçambique Lda (IFM) entered into a partnership with Manica I Timber Investments (MIT) and its wholly owned subsidiary, Agricultural & Ecological Systems International Lda (Agrecol). The partnership aims to aggregate and manage the parties’ respective landholdings within the districts of Dondo and Muanza in Sofala Province, Mozambique, as a comprehensive integrated landscape initiative.

IFM’s role within this initiative is centred on plantation forest management as a nature-based solution, supplying sustainable wood fibre to a growing circular economy while contributing to regional economic development. Well-managed plantation forests provide significant benefits beyond carbon sequestration, including improved water regulation, enhanced biodiversity, and long-term support for rural livelihoods within their associated conservation areas.

Working alongside Agrecol, IFM is expanding both its plantation forestry operations and extensive conservation areas within a landscape approach that actively incorporates neighbouring communities. By the end of 2027, IFM expects to own and manage an aggregated estate of approximately 30,000 hectares, comprising around 15,000 hectares of commercial forestry, of which approximately 8,000 hectares will be managed on behalf of Agrecol. These operations are expected to have a direct and indirect impact on the livelihoods and employment of approximately 10,000 community members.

IFM’s forestry strategy is guided by the Forest Stewardship Council® (FSC®) Principles and compliance with the International Finance Corporation® (IFC®) Performance Standards, which together form the foundation of best-practice land-use and management planning. In addition, IFM intends to align its operations with recognised carbon certification frameworks under the Verra Carbon Standard (VCS®), including Afforestation, Reforestation and Revegetation (ARR) activities and Climate, Community and Biodiversity (CCB®) methodologies.

Over the past year, multiple on-site assessments have been conducted by internationally recognised consultants, including extensive remote-sensing studies evaluating land-use and land-cover change dating back to 1978. These studies provide strong evidence of compliance across environmental, social, and governance criteria.

At scale, the combination of indigenous woodland and riparian restoration alongside eucalyptus plantation establishment represents a complementary approach that supports biodiversity recovery in landscapes historically impacted by illegal logging, charcoal production, and shifting agriculture. IFM’s activities are designed to generate employment, social upliftment, and broader economic opportunities, ensuring that local communities share in the long-term benefits of the initiative.

Carbon revenues are expected to play a pivotal role in enabling plantation forest development alongside long-term habitat stewardship. These revenues contribute to investment risk mitigation, improve price and volume certainty, and support outcomes such as biodiversity restoration and structured community partnerships. In collaboration with MIT, IFM is advancing a carbon project with a projected footprint of up to 32,000 hectares, integrating commercial forestry, carbon capture, and native habitat conservation.

Feasibility assessments have been completed, and a number of biodiversity studies, social baselines, and management plans are currently underway. These will inform the final design of the carbon project, which is intended to be certified under internationally recognised voluntary carbon market standards. Specialist carbon advisory firms have been engaged, with certification targeted for 2026, followed by registration and issuance of carbon credits in 2027.

Revenues generated from certified carbon assets are expected to become a meaningful source of additional funding for IFM and its partners, supporting the accelerated development and scaling of this integrated landscape model in the region.