MIAMI, May 8, 2018 /PRNewswire/ -- Following a recent trip throughout West Africa, African Palm Corp. (APC) announced today a newly signed agreement between the Company and representatives of Ngalipomi, a local group from the Congo. This agreement will give APC access to an additional three million hectares 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.
African Palm Corp. plans on breaking ground on its Congolese operation in the first quarter of 2019 with support from its local partner, Ngalipomi. The two companies will use existing infrastructure found along the Congo River, the second longest river in Africa after the Nile, 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 percent. African Palm Corp. guarantees a contribution of 10 percent of its profits from the Congolese operation back into social programs such as schools, hospitals, and local infrastructure, providing water and electricity for the communities.
"This is the second agreement that we have reached in just a few months and we are thrilled to include the Congo in our next phase of operations. This furthers our vision of creating a sustainable business model that can economically empower local African communities through the cultivation of palm fruits," explained African Palm Corp. President and CEO Oscar A. Faria. "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."
The deal was signed in the presence of a public notary, Director General of Ngalipomi Juvely Ock, along with President and CEO of APC Oscar A. Faria, and the Company's Senior Management: Marielis Ontiveros, Marc Mesa and Carlos Gomez. Also in attendance were Agricultural Engineer Loubaki Cyrille, Director of Operations Ngoulou Prince, and Director General Nkounkou Chérubin from Doigts Verts Congo, who will provide technical advice to both parties engaging in the operation.
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, with Indonesia and Malaysia currently producing 85% 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.
African Palm Corp., with support and advice from a prestigious UK based insurance broker and a Lloyd's syndicate, has designed a solid business model that guarantees investors the viability and profitability of the business. APC's A-Grade ranking from Lloyd's ensures total annual profits, regardless of any political changes or climatic conditions that could affect the production and sales of the oil.
Commitment to Local Communities
This native West African plant grows naturally in the wild, as opposed to some regions in Asia, 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 because of APC's operation will be assigned to local community members and leaders.
ABOUT AFRICAN PALM CORP.
African Palm Corp. is an American company dedicated to the extraction, processing and commercialization in international markets of derivative products of African Palm (mostly Palm Oil). The operations of the company will be based in a cluster of West African countries in partnership with members of the local communities. To learn more, visit http://africanpalmcorp.com/.
SOURCE African Palm Corp.