Below you will find our most Frequently Asked Questions about our Bamboo Plantation Ownership Opportunity in Kenya. If you have any questions that are not listed below, please do not hesitate to contact us.
Please Note: The below F.A.Q. is valid for our plantations in Kenya only!
Q. Who is Africa Plantation Capital?
Africa Plantation Capital is an ISO 9001:2015 Certified Company under UKAS standards (UNITED KINGDOM ACCREDITATION SERVICE) by Bureau Veritas on “ Quality Plantation Management” and “Real Estate Services”. CLICK HERE to Download our ISO Certification.
Multi-award winning Africa Plantation Capital is the crown jewel within the of APC Group of companies. Kenya based Africa Plantation Capital is the East African leader in plantation management services.
Operating since 2002 , the APC Group has over USD 650,000,000 in plantation assets under management and has fully owned plantations in Sri Lanka, Thailand, Malaysia and Kenya and also has various agricultural projects operational in China, Laos, India, Cambodia, Vietnam and the U.S.A.
Africa Plantation Capital’s primary business focus is creating and managing sustainable and polycultural Bamboo plantations in the East African region to produce and export Bamboo fibre for the garment and textile industry in the North American, European and Asian markets.
Awards & Recognition’s
- 2016 Kenya Business of the Year Award from the Kenya Chamber of Commerce and Industry – Learn More.
- 2017 Agribusiness of the Year Award from the Kenya Chamber of Commerce and Industry – Learn More.
- Member KAIG Kenya Association Of Investment Groups – Learn More.
Q. Why should I add Bamboo to my portfolio?
Due to overwhelming demand and hundreds of confirmed uses, Bamboo is by far one of the most cultivated and versatile crops in the world. Your Bamboo plantation will start producing income for you at year 2 all the way to the end of your 20 year lease.
Due to its hypoallergenic and thermo regulating properties Bamboo fibre is currently being used in vast variety of products ranging from clothing to bedsheets and towels by hundreds of companies are the world. Top designer houses such as Lacoste, Armani and Donna Karan to name a few, are all incorporating Bamboo Fibre within their premium clothing and home apparel product lines.
The advantages of owning your own Bamboo plantation is that it is a tangible asset with secured income generating operations. Plantation ownership is particularly attractive to those who wish to own productive assets that are not affected by the typical volatility found in financial markets and other traditional asset classes.
The second and equally important criteria are the multitude of exit option opportunities that are available for bamboo. Bamboo with its plethora of other uses such as in, food, flooring, activated carbon/charcoal, scaffolding, and dozens of others, will still be in demand. Bamboo is in essence a diversified crop, which in turn provides owners with significantly less risk than with most other crops
Q: What is my entry price and what kind of returns can I expect?
A. Your entry price starts at only € 6,658 for a 1/4 acre and will provide you annual returns till the end of your 20 year lease. The Below table is the Average returns for your full 20 years.
Land Metrics
1 Acre = 4,046 m2 and has 160 Dendrocalamus Asper Bamboo clumps planted.
1/2 Acre = 2,023 m2 and has 80 Dendrocalamus Asper Bamboo clumps planted.
1/4 Acre = 1,011.5 m2 and has 40 Dendrocalamus Asper Bamboo clumps planted.
Q. How long is my land lease for?
Your land lease is for 20 years, after which the land will revert back to Africa Plantation Capital.
Q. Will I receive harvest income every year for the full 20 years?
Yes you will, apart from the first year. Your bamboo plantation will need at least a year to produce harvestable product.
Q. Does Africa Plantation Capital actually own the land in Kenya?
Yes, Africa Plantation Capital owns 100% of all its East African Plantations (including Kenya) 100% outright without loans, mortgages or debt attachments. A copy of the titled deeds are available for your inspection upon request.
Q. What is the global demand for Bamboo per year?
The global market for Bamboo and Bamboo related products is expanding at an extraordinary rate. Estimated to have been worth well over USD 50 billion and demand is expected to rise in line with population growth and the current rate it is expected to be over USD 100 billion annually by 2022.
Q. How many tonnes of Bamboo fibre is produced on a per acre basis?
Each acre (4,046 m2) of Bamboo clumps produces an average annual harvest yield of 12 to 18 tonnes of dry “market ready” Bamboo fibre per acre per year, with 15 tonnes per acre being the average harvest yield.
Q. How much will my Bamboo fibre be sold for on a per tonne basis and is there a minimum guarantee price?
Africa Plantation Capital provides you with a contractually Minimum Guarantee Price of € 425 Per Tonne of bamboo Fibre that it sells on your behalf, but you will receive the market price at sales time, the minimum price guarantee is provided to give you a minimum benchmark for your annual harvest returns, your actual returns will be much higher than € 425 per tonne.
Q. What is the current global wholesale price for Bamboo fibre?
The current global wholesale pricing of Bamboo fibre is currently between USD 0.90 to 3.00 per kilogram, which equates to USD 900- 3,000 per tonne, Please CLICK HERE to see current wholesale fibre prices on Alibaba.com (Keywords: Bamboo Fibre Price Per Ton)
Q. I have never been to Kenya before, how business friendly is it?
Kenya is Open for Business! English speaking Kenya is by far the powerhouse economy of East Africa and operates very market friendly liberal policies which promote trade and investment across all sectors. Kenya is one of the first African countries to have abolished all price and exchange controls.
The Kenyan Government has also instituted measures to sustain macro-economic stability such as prudent fiscal and monetary policies, improvements in economic governance, and privatization of public enterprises. These policies continue to promote growth by providing a more secure environment for private sector investment decisions.
Kenya guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate all profits. Private enterprises, both foreign and domestic, can freely establish, acquire, and dispose of business enterprises according to the Companies Act.
The Constitution of Kenya provides rock solid protection against the expropriation of private property. Kenya is also a safe and stable country that offers some of the best quality of life in all of Africa, for these reasons and for its advanced infrastructure, Kenya has been selected to serves as regional headquarters for companies like General Electric, Unilever, Delmonte and KPMG to name a few, as well as Headquarters for the United Nations for all of the African continent.
Q. What is the ownership structure of my Bamboo plantation and what exact documentation will I receive?
You will receive the following documents….
- A 20 year sublease agreement that will state your exact details, the exact amount of bamboo saplings planted on your land and your lands exact GPS geographical coordinates.
- A management agreement covering all of Africa Plantation Capital’s obligations to you during the management term.
- If you are Kenyan Citizen with a Kenyan Passport, you will receive a title deed issued by the Kenyan Ministry of Land, Housing and Urban Development. Only Kenyan citizens can own land in Kenya, foreigners are only permitted to lease land.
Q. Are there any management fees/sales commissions’ payable?
As your designated plantation manager, Africa Plantation Capital, will cultivate and manage your Bamboo plantation on your behalf. No annual management fees are payable for the duration of your Management Agreement. Instead, a harvest cost and sales commission equating to 20% of the gross harvest sales proceeds will be applied. As a result, Africa Plantation Capital’s interests are completely aligned with your own.
Q: Are there any additional fees or management charges?
No, all management, administration and maintenance fees are included upfront. We only get our 20% upon successful sales of your Bamboo fibre and your Bamboo tea leaves.
Q. Why does African Plantation Capital sell Bamboo to third parties?
The board of directors of Africa Plantation Capital made a strategic commercial decision that entails sacrificing some of the returns on a proportion of its plantation assets (that which is sold to owners) in exchange for financial autonomy. The cash inflow from its forestry plantation model has enabled it to grow at a rapid pace, both in terms of size and capacity, without any bank or third party debt. We currently only offer one third of our Bamboo plantations in our third party plantation ownership programme, thus keeping two thirds of our Bamboo plantations for our own purposes.
Q. Is the land in Kenya suitable to cultivate the Bamboo?
When considering sites for plantations, Africa Plantation Capital performs a wide variety of tests in order to establish the ideal conditions for optimal growth. These include soil and water tests to check for fertility depth, as well as levels of calcium (Ca), phosphorus (P), potassium (K), nitrogen (N), and other organic matter. Access to a reliable water supply is also a major factor. All of its plantations are optimized for the cultivation of Bamboo.
Q. What if Bamboo is destroyed or does not grow properly?
Loss or damage to stock could occur for a variety of reasons. If such an event or events (as listed below) were to occur, Africa Plantation Capital undertakes to replace the impacted Bamboo with other Bamboo from its own buffer stock with no extra cost, for the entire duration of your 20 year lease agreement, thus guaranteeing you a 100% harvest.
- Fire
- Lightning
- Wild animal damage
- Cyclone & Hurricane
- Drought
- Theft & Vandalism
- Flooding
- Pest and disease
- Hail Damage
In order to mitigate all risk factors, rigorous assessment and due diligence of plantation sites are conducted annually. Each plantation is irrigated, fenced, and has 24 hours a day security and a on duty plantation manager.
Q. How will I be notified when my Bamboo is harvested and processed?
When your Bamboo is harvested, the harvest process is meticulously controlled and recorded throughout. A Harvest Certificate will be given to you, detailing the amount fibre produced from their Bamboo. This will be checked and verified by the Processing Manager. At any stage of the process, you are welcome to observe or appoint your own observers to oversee this procedure.
Q: How do I know how much Bamboo is harvested from my plantation?
All plantation management duties are carefully recorded. Each individual bamboo clump is bar coded and has a unique identifier number, allowing us to document them throughout their growth cycle. Also, Africa Plantation Capital carefully records the exact amount of Bamboo harvested on a per acre / per kilogram basis. In addition, you will receive an audited harvest statement certified by Africa Plantation Capital prior to your Bamboo fibre being sold.
Q. Can I take physical delivery of my raw Bamboo or processed Bamboo fibre?
Yes, you can take physical delivery of your raw Bamboo or processed Bamboo fibre if you so wish. All costs associated to physical delivery will be borne by you, the owner.
PLEASE NOTE: If you wish to take physical delivery, we will deduct 20% of your bamboo to cover our harvesting and management fees.
Q. In which currency are my annual harvest proceeds paid in?
By default, all harvest proceeds are by bank wire transfer in Euros unless you request otherwise. If you request any other currency besides Euros, currency conversion fees may apply. You will receive copies of all currency conversion statements.
Q. When will I receive my annual harvest proceeds?
Africa Plantation Capital shall within 30 days of the collection of the sales proceeds, pay the balance, after deducting the 20% harvesting cost to your nominated bank account.
Q: Can I receive my harvest proceeds in cryptocurrency?
Yes, you may opt to receive your harvest proceeds in Bitcoin or Ethereum.
Q: Do I have to pay taxes in my home country on my harvest proceeds?
Africa Plantation Capital is not licensed to give out tax planning advice, please consult a licensed tax professional in your jurisdiction.
Q: Where exactly is “MY” Bamboo Plantation located?
Your Bamboo Plantation is located at one of our master plantations in Kilifi, Kenya. The city of Kilifi is only 73 Kilometers from the famous port City of Mombasa, Kenya. Mombasa is the largest commercial port in East Africa and is the ideal location to serve as an “Export Hub” for all of Africa Plantation Capital’s East African operations.
Q: Can I visit my Bamboo Plantation? I would really like to see it.
Yes! In fact, we very highly encourage you to visit your plantation and see your bamboo. Just let us know of your desired visitation dates (15 days’ notice is required) and we will make complimentary hotel arrangements for you and one guest at the 5 Star luxury Serena Beach Resort & Spa. We will also arrange for you a guided tour of your plantation and our nurseries and research facilities at the Kenyan Forestry Research Institute. (KEFRI).
Over 90% of our plantation owners, once they have visited their plantation are so happy that they immediately increase their initial holdings, because they quickly realize that there are no safer returns in the markets today.
Please Note: All complimentary accommodation is for a maximum 7 days and 6 nights. All complimentary accommodation is for 2 persons, based on a shared deluxe room basis with a king size or two twin size beds (subject to bed availability).
Since Mombasa is considered a highly sought after tourist destination, many of our clients have requested to extend their stay and make a Safari Holiday out of it, if this will be the case for you, please let us know in advance and our reservation team will handle all your extended bookings and you will receive our corporate discount rates at all local participating hotels and safari tour operators.
Q: Can I transfer or sell my Bamboo Clumps to a third party?
Yes, your Bamboo Clumps are your exclusive private property, you may sell them or transfer them to anyone at any time without restrictions. All transfers are subject to a € 5 per Bamboo Clump administration fee and must be paid at time of transfer request.
Q: What happens to my trees if I die or I become incapacitated?
Your Bamboo plantation is part of your estate and can be passed on to whoever you choose, just like your home. In the event of death or you become incapacitated, the above mentioned administration fee will be fully waived.