New Investor Enters South Africa’s Forestry Sector
South Africa hosts an advanced commercial forestry industry with significant export potential for investors. In September, international investor New Forests made its initial entry into the country by acquiring Rance Timber, a forestry and sawmilling company.
Details of the Investment
The Australian-based company took 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.”
Forestry Industry Context in South Africa
Although less than 10% of South Africa’s land is forested—much lower than some African countries with over 80%—it has the continent’s most advanced commercial forestry sector. It leads the Southern African Development Community (SADC) region with the largest plantation forestry area.
The country also features a comprehensive timber processing industry that produces a wide range of finished products.
Outlook for the Forestry Sector
Kemoli is optimistic about the future growth of South Africa’s forestry sector and the opportunities it presents for both local and regional market expansion.
Author’s summary: New Forests’ acquisition of Rance Timber marks a significant investment in South Africa’s advanced forestry industry, positioning the company to expand in local and African markets.