How to invest in forestry and make millions in Kenya and Africa - YouTube

hello ladies and gentlemen welcome to my channel  my name is george kingori i'm your online finance  

guy who speaks about all things finance how can be  able to save i can be able to invest and everybody  

you can be able to grow your finances and today  i'm going to speak about an investment opportunity  

that you could be able to explore in your local  region whether you are abroad or you are locally  

in your region whether you are available to  be able to offer support in that project or  

you are leaving it to a third party it is one  project that you can be able to do with minimal  

management skill and with a lot of net return at  the end of the period so what is this investment  

that i'm talking about this investment is  forest ladies and gentlemen we will always  

require timber we will always require wood and  we can never actually replace it completely  

from our use no matter how many efforts today to  be able to reduce our dependence on wood is done  

and actually the forested land is growing smaller  and smaller and the value of timber is growing  

bigger and bigger so how can you be able to invest  in these properties the first thing that you need  

to have is land the unfortunate thing that is  that you do not do forests on leased land so  

you need to purchase land but the beauty is you  do not need to buy expensive land you just need  

land that is virgin that you need land that can  be able to produce food and you need land that  

requires minimal effort and management so any  land that you buy that is already having a bush  

is a sign it is not that can be able to sustain  a forest so buy land identify cheap pieces of  

land they don't have me to be close to the road  because it is not where you are living you don't  

have to be close to a major place of interest it  just need to be somewhere that the soil is good  

and the you can be able to either drill a well and  get some water for the preliminary stages as you  

support the plants or the trees as they grow so  maybe a hydro-logical report could help however  

there are so many places that you could be able to  dig a well without spending millions and you could  

be able to enjoy it and again remember this is a  tip for forest if you are living in the tropics  

you should be doing this like yesterday why the  tropics because the of the completely many days  

of sun trees grow much faster and you have a big  variety of trees that you could be able to explore  

for this particular opportunity so you have  bought land and you have bought it cheap the  

other thing you need to identify the trees  that are commercially good in your region  

and you need to identify trees that can be able  to grow with minimal input from you in your in  

that land that you have bought so there are a lot  of information from the forestry departments you  

which you could be able to explore from my own uh  research i have identified that in kenya there are  

several trees that are usually pushed for people  to invest in if you want to go the local trees  

there are several species up to 27 of them that  you could be able to explore not just for timber  

but for medical purposes for fruit and for other  great uses for resin and all those other things  

so forestry has a lot of other components that  you could be able to explore and make some money  

there are also some trees that you could be able  to explore and be able to harvest for a systematic  

period of time without waiting for say 10 years  or 15 years but you could be able to harvest them  

say in two years in five years because the tree as  it is in various stages can still be used as it is  

so there are several trees for several occasions  for several places but identify the tree that you  

want to do if you are unavailable maybe you are  working abroad and you are not able to be able to  

check your forest and verify things buy a tree  that is going to grow and be able to mature by  

the time you are moving back if your intention is  to move back or when you are having a holiday and  

can be able to come harvest sell your trees so  time them to be able to take longer if you're  

designed to be able to get residual income over a  period of time but still that have that big chunk  

of money at a certain period of time then be able  to mix trees that are going to give timber are sin  

after 10 years and still give fruit like  mangoes and apples that you can be able to sell  

over a period of time do your research because i  can of the various uh places that we are talking  

about i cannot tell you use these three but  look for the tree that is most commercially  

viable in your area and can be able to do do well  in your area with ma without much a lot of effort  

then the other thing you need to identify how many  trees do you need to plant per acre of land then  

do the right quantities don't be too greedy and  plant a lot of trees together because they will  

not grow thick and remember if your desire to  be able to sell big chunks of lumber or timber  

then when they are planted too close together  they will not thrive so get the right mix  

it could be as as high as 1 000 trees per acre you  could be able to do as high as 2000 trees per acre  

but for the trees that usually thin out over time  and use this timber for sale over a period of time  

before the 10 years or 15 years when the  tree matures or gets to a harvestable size  

so ensure that you can be able to plant in such a  way that it meets your needs if you plant too thin  

too close they become too thin and too tall if you  give a lot of space you might end up wasting space  

and have thick trees some which might not  grow efficiently then you also need to time  

how you were able to prune so because you need to  control how your tree grows because remember trees  

that grow like this do and have less commercial  value than trees that grow straight up for a big  

period of lime which length is consistent with  size and you can be able to get much more better  

quality of timber so all these things are things  that you can be able to research but i am here to  

talk about the financial side you can be able to  get reasonably for let us talk for uh normal trees  

for lumber after 10 years or 15 years you could  be able to sneak in a thousand trees that you  

could plant there let us just for this example say  that 500 trees will actually survive some you will  

prune off and some will die in the process but  only 500 in the acre are going to survive so  

you have say 10 acres my desire is that you get  at least 10 acres for commercial sense so that  

when you are traveling and doing these things and  getting someone to to be able to do the management  

especially in the beginning of the period it does  not make sense to do one cartoon across do 10  

20 going up because then you'll be able to get  the economics of scale going because the person  

the costs that you incur in the initial will be  able to be leveled out quickly when you have much  

more trees so economies of scale so 10 acres for  example minimum 10 acres so you have 500 trees  

that have survived to maturity after 10 years  so 500 then you have 10 acres so 500 times 10  

you have 5 000 trees so these 5 000 trees in one  tree gives you fifty dollars or five thousand  

kenyan shillings then you would be able to make  25 million shillings without actively being there  

so assume that you bought the land in a far  of place i say 200 000 or 2 000 dollars per  

acre then you effectively would be and if your  costs for example are maximum together with the  

labor and and the tree seedlings and offensing  and all these things come to five million  

then you effectively have made more than  four hundred percent profit in ten years  

if you bring it forward then it would  mean around 40 percent per annum when you  

do it on an annual basis to give you  400 percent in 10 years that is magic  

as the the problem with this project is  you might not be able to get your money  

instantly and it might take 10 years and you might  spend a lot of money in the initial stage before  

you actually see realizable benefits but once  you do it you could be able to make your money if  

you are in your 30s and in your 40s you are in a  better position because by the time your children  

are getting into university when the costs to  pay education are much higher you could sell your  

trees at that point or when your children you're  in your 50s and your children are getting into  

when they are getting married and  staying you could be able to give  

them a jump start by selling your trees and  helping them to make deposits on their houses  

and initial investment you could kick off your  children with this investment i hope that you  

are learning you are growing if you have any  more questions please leave them down below  

i will leave a link from the kenya forestry kfs  kenya forestry services about the several trees  

that could be able to explore if your local  region is kenya east africa and the various  

soils and all this a lot of information that is  out there i will leave some links below because  

it could help you as you grow in your financial  journey so that is an ex again before i leave  

if the investors for the big families the people  who have a lot of money in families for over a  

long period of time in europe in the uk in the  us have at least 20 percent of the investments in  

forestry giving them at least 15 percent return  according to some statistics i gathered on family  

business and the investments portfolio  who are you not to invest in these things

make money think and thank me later remember  to leave a comment to subscribe to the channel  

and to tell me that you are learning  you're growing and you're becoming  

better because that is my mission for  this channel thank you and enjoy your day