The New Forests-managed African Forestry Impact Platform (AFIP) has bought into the 100-year-old South African forestry and saw milling company, Rance Timber, its second acquisition in Africa.
Rance Timber is a pioneer in the South African forestry industry which primarily supplies the country’s formal timber market, which is registered with the government.
Chris Rance, finance director and shareholder, Rance said: “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.”
Rance said his company had a long track record as a responsible and successful corporate citizen through responsible and diligent management of its natural resources and continual investment in its people and process.
“It has built strong relationships with staff and stakeholders and has made significant contribution to the socio-economic well-being of the rural people of the Amathole region.”
Yida Kemoli, managing director, Africa, New Forests, said it was a “huge positive” to be able to enter a new market alongside a company with “great legacy”.
Kemoli said Rance Timber, a multi-generational company, shared New Forests’ values and principles, including community livelihood and gender equality.
He said New Forests would capitalise on its global network to help open up export markets overseas for Rance products. And as with the rest of Africa, the South African timber market was changing with an emerging and growing informal timber market.
AFIP received initial commitments of US$200m from national development finance institutions from the UK, Norway and Finland in 2022. Its target is to raise US$500m.
The platform now owns assets in five African countries, including South Africa.
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