New Investor Enters South Africa’s Forestry Industry
South Africa hosts a well-established commercial forestry sector offering significant export opportunities for investors. In September, international investor New Forests made its initial investment in the country by acquiring a majority stake in Rance Timber, a historic forestry and sawmilling firm.
Details of the Acquisition
Rance Timber, based in the Eastern Cape, manages 14,000 hectares of pine plantations and operates two sawmills. The acquisition marks New Forests’ first move into South Africa, expanding its footprint in the forestry sector.
Strategic Vision from New Forests
“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.”
South Africa’s Forestry Landscape
Although less than 10% of South Africa’s land is forested—much lower than some African countries with over 80% forest cover—the country leads in commercial forestry sophistication. It holds the largest plantation forestry area within the Southern African Development Community (SADC) region.
Additionally, South Africa features a comprehensive timber processing value chain producing finished wood products, reinforcing its regional leadership in forestry industries.
Outlook for South Africa’s Forestry Sector
Kemoli expresses optimism about the sector’s future: the country’s forestry industry has strong potential to advance and expand further in the coming years.
Author summary: South Africa’s advanced commercial forestry industry attracts new investment from New Forests, signaling potential for growth in regional markets and value-added timber products.