The US-based African Palm Corp (APC) has announced to extend palm oil production to Congo and Guinea-Bissau, a move that aims to increase the sustainable extraction, processing and commercialisation of products derived from African palm trees, mainly palm oil
Following a recent trip throughout West Africa, (APC) signed agreement with the representatives of Ngalipomi, a local group from the Congo. This agreement will give APC access to an additional three million ha of palm trees in West Africa. The recent addition has substantially grown the company's West African portfolio, which currently includes Guinea-Bissau and Congo, and positioned the company's cluster as the third largest area dedicated to the production of African palm oil in the world, following Indonesia and Malaysia.
APC and Ngalipomi aim to increase Congolese operation in the Q1 2019. The two companies will use existing infrastructure found along the Congo River to transport its harvested palm fruits to APC's production facilities. The project is expected to generate a total of 120,000 new direct and indirect jobs, while improving Congo's GDP by 22 per cent.
“We are seeking partnerships with West African countries where we can streamline our respective strengths to deliver high-quality, sustainably sourced palm oil to our list of global clients,” said Oscar A Faria, president and CEO of APC.
The demand for palm oil has increased drastically in the last 20 years across the globe, going from 15 mmt per year in 1995 to more than 65mn in 2015, with Indonesia and Malaysia currently producing 85 per cent of the world's palm oil. 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.
