Oil tycoon Wood 'teas' up first multi-million deal for Africa's poor

OIL tycoon Sir Ian Wood has announced plans to make the first major investment to help the poor in Sub Saharan Africa from his family's £50 million charitable trust.

Sir Ian, one of the richest men in Scotland, announced two years ago that he was devoting 50m of his personal fortune to establish the Wood Family Trust, with the intention of investing the money in a series of economic, community and enterprise activities in Sub Saharan Africa and Britain over a ten-year period.

The trust has already invested 2.7m in programmes aimed at developing citizenship and enterprise in young people in Scotland as part of its focus on developing and supporting individuals to become independent and caring members of society.

Now the head of the Aberdeen-based global oil service company the Wood Group has announced plans for the first major investment by the trust in developing markets for the poor in Africa through a 5.9m project to develop tea production by small holders in Tanzania.

The project is being developed in partnership with the Gatsby Charitable Foundation, the philanthropic body established by Lord David Sainsbury.

Sir Ian, who is currently at the centre of controversy over his plans for a new civic square at the site of Aberdeen's Union Terrace Gardens, said he was determined to use some of his personal fortune to help address the poverty, famine and disease which exists in the Third World.

He said: "Wood Group has become a global player in the oil and gas industry and enjoyed the benefits of globalisation. The corollary must be recognising our responsibility in addressing some of the world's great inequities in wealth and wellbeing, and particularly in regions of very high poverty, famine and disease.

"The Wood Family Trust focus is not on aid, but on helping people help themselves by creating appropriate economic activity and the potential for sustainable employment and prosperity.

"Our initial focus is East Africa which is at an appropriate stage of economic development and our three initial countries are Tanzania, Uganda and Rwanda."

Commenting on the decision to launch activities in Tanzania, Sir Ian said: "We believe the value chain approach through the Chai (tea) Project will improve the productivity of Tanzania's tea industry and create sustainable economic development and more employment."

The tea sector in Tanzania is worth $28.7 million in export earnings and more than 31,000 smallholders are directly involved in production, supporting more than 50,000 families.

Sir Ian said the plan was to increase the income of smallholder farmers by at least doubling their production over the next five years through technical support, grants, and loan guarantees.