New investor puts down roots in South Africa’s forestry industry

New Investor Enters South Africa’s Forestry Sector

South Africa hosts a well-developed commercial forestry industry that offers significant export opportunities for investors. In September, international forestry investor New Forests made its debut investment in the country by acquiring a majority stake in Rance Timber, a forestry and sawmilling company.

Rance Timber and New Forests Partnership

The Australian-based New Forests now controls Rance Timber, a century-old business that manages 14,000 hectares of pine plantations in the Eastern Cape and operates 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, new markets within Africa as well.”

Forestry Landscape in South Africa

Though forests cover less than 10% of South Africa's land area—substantially lower than some African countries with over 80% forest cover—the country possesses the continent’s most advanced commercial forestry industry. It has the largest plantation forestry area within the Southern African Development Community (SADC) region.

Value Chain and Industry Potential

South Africa benefits from a comprehensive timber processing industry that converts raw timber into finished products. According to Kemoli, this sector is poised for further growth and innovation.

Kemoli believes the country’s forestry sector can progress to new heights.

Author's summary: New Forests' majority acquisition of Rance Timber highlights the significant growth potential within South Africa's sophisticated yet under-forested commercial forestry industry.

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African Business African Business — 2025-11-06

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