New Investor Enters South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry industry, providing significant export opportunities for investors. In September, international forestry investor New Forests made its debut investment in the country by acquiring Rance Timber, a forestry and sawmilling business.
The Australian-based firm gained 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.”
Though South Africa has limited forest cover—estimated at less than 10% of its land compared to over 80% in some African nations—it possesses the continent’s most advanced commercial forestry sector. It also has the largest plantation forestry area within the Southern African Development Community (SADC).
The country supports a broad value chain, converting raw timber into finished products through various processing industries.
Kemoli expresses optimism about the sector’s future: “The country’s forestry sector can progress to new heights.”
Author's summary: New Forests' investment in South Africa's leading forestry company highlights the country's advanced timber industry and its potential for growth in regional and African markets.