New Investor Enters South Africa’s Forestry Sector
South Africa hosts a well-developed commercial forestry industry that presents significant export opportunities for investors. In September, international investor New Forests made its debut investment in the country by acquiring Rance Timber, a forestry and sawmilling company.
About the Acquisition
The Australian-based firm took a majority stake in Rance Timber, a century-old business managing 14,000 hectares of pine plantations in the Eastern Cape province. The company also operates two sawmills.
“We see it as a great platform from which to grow within South Africa,” says 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 Landscape in South Africa
- Less than 10% of South Africa's land is forested, much lower than in other African nations where forest cover can exceed 80%.
- Despite limited forest area, South Africa has the most sophisticated commercial forestry industry on the continent.
- The country has the largest plantation forestry area in the Southern African Development Community (SADC) region.
- An extensive value chain exists that processes timber into finished goods.
Outlook for the Forestry Sector
Kemoli expects the South African forestry industry to reach new levels of progress and growth.
“The country’s forestry sector can progress to new heights,” Kemoli adds.
Author’s summary: New Forests’ investment in South Africa’s established forestry firm signals confidence in a mature industry poised for expansion and new market exploration across Africa.