New Investor Enters South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry sector with significant export potential for investors. In September, international investor New Forests made its debut in the country by acquiring Rance Timber, a forestry and sawmilling company.
Details of the Acquisition
The Australian-based firm obtained a majority stake in Rance Timber, a century-old enterprise managing 14,000 hectares of pine plantations in the Eastern Cape province and operating 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.”
Forestry Sector Overview
Although South Africa is not heavily forested—less than 10% of its land is covered by forests compared to over 80% in some African countries—it has the most advanced commercial forestry industry on the continent. It also leads the Southern African Development Community (SADC) in plantation forestry area.
The country supports a broad processing value chain that converts timber into finished goods. Yida Kemoli is optimistic about the future progress of South Africa’s forestry sector.
Significance for Regional Growth
New Forests aims to leverage Rance Timber’s established infrastructure to expand in the local and wider African markets, reflecting confidence in the region’s potential.
Author's summary: New Forests’ investment in South Africa's mature forestry industry marks a strategic move to harness export potential and stimulate growth across Southern Africa’s timber markets.