New Investor Puts Down Roots in South Africa’s Forestry Industry
South Africa has developed a sophisticated commercial forestry sector that provides strong potential for investors seeking value-added export opportunities. In September, the international forestry investment firm New Forests entered the South African market by acquiring Rance Timber, a long-established forestry and sawmilling company.
The Australian-headquartered group obtained a majority stake in the century-old enterprise, which operates 14,000 hectares of pine plantations in the Eastern Cape province and runs 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 and across the continent.”
Although less than 10% of South Africa’s land is forested—far below the levels seen in some African countries—the nation possesses the most advanced commercial forestry industry on the continent. It also commands the largest plantation forestry area within the Southern African Development Community (SADC).
Beyond its plantations, South Africa’s forestry value chain includes a broad array of processing industries that turn raw timber into finished goods. Kemoli expressed confidence that the country’s forestry sector has strong potential for further expansion and innovation.
Author’s Summary
New Forests’ entry into South Africa’s forestry sector marks a strategic investment, strengthening local industry growth and unlocking new regional market opportunities.