By Gerelyn Terzo, Global AgInvesting Media
A century-old South African timber business is welcoming a new partner as global investor New Forests expands its reach across the continent. Through its African Forestry Impact Platform, the Sydney, Australia-based asset manager is acquiring Rance Timber, a family-owned forestry and sawmilling company in the Eastern Cape. The deal marks New Forests’ first foothold in South Africa and the second acquisition for the open-ended fund, which was launched in 2022 with backing from British International Investment, Norfund and Finnfund.
In the heart of Rance Timber’s operations lie its extensive pine plantations, spanning over 14,000 hectares in South Africa’s Eastern Cape province, primarily in the Amathole region around Stutterheim. These plantations largely feature fast-growing exotic species such as Pinus patula, important for its resilience in higher-altitude sites and suitability for structural timber; Pinus elliottii, appreciated for its straight grain and use in construction lumber; and Pinus radiata, lending its quick growth and versatility for sawn boards and pulp products. In turn, these trees fuel a sophisticated value chain producing pulp, paper, sawn lumber, board products and utility poles for both local construction and export markets.
Yida Kemoli, Managing Director, Africa, New Forests stated, “We are extremely pleased to be partnering with Rance, a family-owned business, with a strong reputation for its approach to forestry management, sustainability and innovation in South Africa. Forestry is an important sector for South Africa, ranking amongst the top exporting industries, contributing significantly to employment, and is underpinned by strong government regulations and support, making it an attractive market in which to invest.”
Rance Timber Finance Director Chris Rance commented, “Rance conducted a thorough process to find an investor who will continue Rance’s philosophy of careful stewardship of its human and natural resources with the objective of enhancing the long-term value of the group for the benefit of all stakeholders and the region. Rance is fully confident that New Forests will build on the foundation of this valuable legacy.”
Kemoli also noted that the acquisition complements New Forests’ earlier investment in Green Resources, a pan-East African forestry company. With two portfolio companies in place and a pipeline of additional opportunities on the horizon, the firm is looking to position this fund as a cornerstone vehicle for institutional investment in Sub-Saharan forestry.
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