An Industrial Perspective on Forest Investment in Africa – with Hans Lemm

Today, I’m joined by Hans Lemm, Director of Acacia Africa Advisors and former CEO of East Africa’s largest forest company. In this conversation, Hans shares lessons from over two decades of leading industrial forestry businesses across the emerging markets of Tanzania, Uganda, Kenya, Mozambique, and South Sudan. We explore what’s changed and what hasn’t in African forestry, from the growing role of smallholder farmers to the influx of Asian processing investment. Hans offers practical insights on managing operational and reputational risks, outlines investor misconceptions, and explains why inclusive value chains and realistic projections are key to successful forest investment. We also talk about the critical (but often misunderstood) role of carbon finance and the job-creation potential of forest industrialization.QuoteAfrica is generally a good place to grow trees. Trees grow fast here, and there are appealing fundamentals like a growing middle class and urbanization—but it remains a complex operating environment.Despite assumptions, I’ve never seen real problems around political risk or land tenure in my 20+ years of experience across the region. The risks are different than people often think.Useful ResourcesThe ForestLink newsletter signupHans Lemm on LinkedInProduction TeamFounding Director and Host: Shauna Matkovich - The ForestLinkProducer and Editor: Magdalena Laas - Unscripted CreativesChapters00:00] Introduction – Meet your host, Shauna Matkovich[00:19] Guest intro – Hans Lemm of Acacia Africa Advisors[01:12] Hans’s journey: 25 years in African forestry[03:08] How Africa’s forest sector has changed – and what hasn’t[04:12] More than just planting: The need for downstream investment[05:14] The role of smallholder tree farmers[06:27] What happens when industrial capacity lags behind wood supply?[07:16] Rise of Asian investors and local processing[08:27] Domestic markets: Still largely informal[09:37] What still needs to change: Standards, logistics & regulation[11:11] Ingredients for a sustainable forestry business[13:01] Real vs. perceived investment risks[15:06] Taxation and technical missteps – hidden threats[17:06] Local knowledge matters – even within small regions[18:02] Forex, investor fatigue & reputational concerns[19:09] Aligning operators and investors for long-term success[21:52] Reporting pressure in emerging markets[24:08] The role of DFIs in African forestry[26:32] Key market drivers: Trade with Asia, local manufacturing[28:14] Carbon finance: Tool or trap?[30:07] Forestry as a job engine and community license to operate[33:01] Field story: The cobra in Uganda[33:19] Mentorship and career-defining moments[34:54] Evacuation in South Sudan – and the best beer ever[37:04] What’s next for Hans Lemm[38:00] Final advice to investors: Be realistic[38:41] Where to find Hans Lemm online[39:00] Outro – Thanks from Shauna MatkovichSound LibraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/SoundcloudAmbient Documentary by Sound Guru (Pixabay)Sign up now for the ForestLink’s newsletter, where you’ll receive technical advice, reflections, and best-practice guidance to support you with your forest-linked investment strategy or business straight to your inbox. Hosted on Acast. See acast.com/privacy for more information.