New Investor Invests in South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry sector with significant value-added export opportunities. In September, international investor New Forests made its debut investment in the country by acquiring Rance Timber, a forestry and saw milling company.
The Australian-based firm acquired a majority stake in this 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 Context in South Africa
Although South Africa has less than 10% of its land forested—much lower than over 80% in some African nations—it boasts the most advanced commercial forestry industry on the continent. It holds the largest plantation forestry area within the Southern African Development Community (SADC) region.
In addition, South Africa supports a broad value chain with industries that process timber into finished goods, enhancing its export potential.
Future Prospects
Kemoli is optimistic about the sector's growth, expecting South Africa’s forestry industry to reach new levels of development and market expansion.
“We see it as a great platform to explore new markets within South Africa, new markets within Africa as well.”
Summary: New Forests’ investment in South Africa’s forestry sector marks a strategic move to expand within the country and across African markets, leveraging one of the continent’s most advanced forestry industries.