New Investor Enters South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry sector, offering substantial value-added export opportunities for investors. In September, international forestry investor New Forests made its debut investment in South Africa by acquiring Rance Timber, a forestry and sawmilling company.
About the Investment
The Australian-based company acquired a majority stake in the century-old Rance Timber, which manages 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.”
South Africa’s Forestry Landscape
- Less than 10% of South Africa’s land is forested, a relatively small share compared to over 80% in some other African countries.
- Despite this, South Africa has the continent’s most advanced commercial forestry industry.
- It holds the largest area of plantation forestry in the Southern African Development Community (SADC) region.
- The country features a comprehensive value chain that processes timber into finished goods.
According to Kemoli, the forestry sector in South Africa has strong potential to reach new levels of growth and innovation.
Author’s summary: New Forests’ acquisition marks a strategic move into South Africa’s leading commercial forestry sector, leveraging its established plantations to explore growth opportunities across Africa.