Anytime you part with your hard earned cash in pursuit of more cash, there is a window of
uncertainty, which in investment jargon is called risk propensity. An investment decision is very personalized and an array of factors come into play; from cultural, environmental, economic and even social. However, the unanimous expectation is that the money invested will bear returns, even though that’s not usually the case often. Most investments that offer
some sort of guaranteed returns (low-risk investments) often yield low returns, for instance; Stock market and fixed deposits.

Commercial tree planting and low-cost rentals are longterm and low-cost investments that bear the prospects of a tidy sum in returns than most alternatives that exist today.

Commercial Tree Planting

A key component of this investment is that anybody can embark on it. This is a long-term investment that involves the planting of trees for the sole purpose of making a profit. According to Goldenscape Tree Africa, there is an unquenchable demand for timber
services, especially in Kenya that would take over 50 years to meet which would complement Kenya’s goal of restoring forest cover to 10%.

The World Resource Institute categorizes this activity under the restoration economy, which refers to the network of businesses, investors, and consumers that engage in economic activities related to restoring the land. The world loses 18.8 million acres of forest every year,
an area about the size of Panama. It also gains 10.6 million acres of forest annually, as a result of planted or naturally regenerated forests, but there is a net loss of 8.1 million acres.

Restoration of the ecological system is a global effort, and hence individuals too can join in, and make money while at it. Land is the priciest factor of production especially in cases where the investor has to purchase it.

To read the rest of this article from B&M Issue 3, please download the FREE pdf or view it as a flipbook here.

Business & Money Magazine Issue 3 Cover

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