New Investor Enters South Africa’s Forestry Industry
South Africa hosts a well-developed commercial forestry sector that presents significant export opportunities for investors. In September, international forestry investor New Forests made its initial move in the country by acquiring a majority stake in Rance Timber, a forestry and sawmilling company.
About Rance Timber and New Forests
The Australian-based firm took control of the century-old company, 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.”
Forestry Industry Landscape in South Africa
Though less than 10% of South Africa’s land is forested, making it less forested than many African countries with over 80%, it possesses the continent’s most advanced commercial forestry industry. It holds the largest plantation forestry area in the Southern African Development Community (SADC) region.
Additionally, South Africa supports a comprehensive value chain, with processing industries that convert timber into various finished products.
Outlook for the Forestry Sector
Kemoli is optimistic about the future growth of South Africa’s forestry industry, anticipating further development and expansion.
Kemoli believes the country’s forestry sector can progress to new heights.
Author’s summary: New Forests’ acquisition of Rance Timber marks a strategic entry into South Africa’s sophisticated forestry sector, which, despite limited forest cover, offers vast potential for growth and expanded market reach.