New Investor Puts Down Roots in South Africa’s Forestry Industry
South Africa hosts one of the most advanced commercial forestry sectors in Africa, offering strong export opportunities for global investors. In September, international forestry group New Forests made its first move into the South African market by acquiring Rance Timber, a well-established company specializing in forestry and sawmilling operations.
The transaction gives the Australian-based firm a majority share in a business that oversees 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,” 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.”
Although less than 10% of South Africa’s land is forested, the country possesses the most developed forestry industry in the Southern African Development Community (SADC) and leads the region in plantation forestry. In addition, an established value chain converts raw timber into diverse finished products, extending the industry’s economic impact.
Industry Outlook
Kemoli believes the nation’s forestry sector is poised to reach new levels of growth, supported by strong infrastructure, expertise, and growing international interest.
Author’s Summary
New Forests’ investment in Rance Timber strengthens South Africa’s advanced forestry base and signals new regional expansion opportunities across Africa.