New investor puts down roots in South Africa’s forestry industry
South Africa hosts a well-developed commercial forestry industry offering significant export potential for investors. In September, international investor New Forests made its debut investment in the country by acquiring Rance Timber, a forestry and sawmilling company.
The Australian-based firm secured a majority stake in the century-old business, 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,” 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.”
Though South Africa has less than 10% of its land forested—much lower than some African countries with over 80% forest cover—it maintains the continent’s most advanced commercial forestry sector. It holds the largest plantation forestry area in the Southern African Development Community (SADC) region.
The country also boasts a comprehensive processing industry that converts timber into finished products. According to Kemoli, South Africa's forestry sector is poised for further growth.
“We see the country’s forestry sector can progress to new heights,” Kemoli adds.
Author’s summary: New Forests’ acquisition of Rance Timber marks a significant step in South Africa’s sophisticated forestry industry, highlighting growth prospects within the country and across Africa.