New Investor Strengthens South Africa’s Forestry Sector
South Africa hosts an advanced commercial forestry industry with significant potential for export-oriented investors. In September, the international forestry firm New Forests completed its first deal in the country by acquiring Rance Timber, a long-established forestry and sawmilling company.
The Australian-based investor now holds a majority share in Rance Timber, which operates around 14,000 hectares of pine plantations in the Eastern Cape and runs two sawmills. The acquisition is seen as an important step toward expanding operations within South Africa and exploring broader continental opportunities.
“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.”
South Africa’s Role in African Forestry
Although less than 10% of South Africa’s land area is forested—far below the levels seen in some other African nations—it maintains the region’s most developed commercial forestry base. The country leads the Southern African Development Community (SADC) in plantation forestry and supports a strong value chain of timber processing and product manufacturing industries.
According to Kemoli, South Africa’s forestry sector holds the capacity for further growth and innovation, positioning it as a sustainable hub for regional development.
Author’s Summary
New Forests’ acquisition of Rance Timber marks a major boost to South Africa’s advanced forestry industry, offering new opportunities for domestic and continental expansion.