New Investor Takes Root in South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry sector offering significant export potential for global investors. In September, international forestry investor New Forests entered the South African market by acquiring Rance Timber, a long-established forestry and sawmilling company.
The Australian-based firm now holds a majority share in the business, which oversees 14,000 hectares of pine plantations in the Eastern Cape province and operates two sawmills.
“We see it as a great platform from which to grow within South Africa,” said Yida Kemoli, managing director for Africa at New Forests. “And we also see it as a great platform to explore new markets within South Africa, new markets within Africa as well.”
Although less than ten percent of South Africa’s land area is forested—far below the levels of some African nations—it possesses the most advanced commercial forestry industry on the continent. The country leads the Southern African Development Community (SADC) region in plantation forestry area and features a robust processing value chain that converts raw timber into finished goods.
Kemoli expressed optimism that South Africa’s forestry sector is well-positioned for further growth and modernization.
Author’s Summary
New Forests’ acquisition of Rance Timber marks a significant expansion into South Africa’s sophisticated forestry sector, signaling potential growth for the regional timber industry.