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 first foray into the country by acquiring Rance Timber, a forestry and sawmilling company.
Details of the Investment
The Australian-based company secured a majority stake in the century-old business, which manages 14,000 hectares of pine plantations in the Eastern Cape and 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 in South Africa
Although less than 10% of South Africa’s land is forested—much lower than the more than 80% seen in some African countries—the country boasts the most advanced commercial forestry industry on the continent. It has the largest plantation forestry area within the Southern African Development Community (SADC) region.
South Africa also features a comprehensive value chain of industries that convert timber into finished goods.
Future Outlook
Yida Kemoli believes the forestry sector holds significant potential for advancement and growth in South Africa.
Author's summary: New Forests’ strategic investment in South Africa’s forestry company Rance Timber marks a promising step in expanding the country's sophisticated timber industry and exploring broader African markets.