Forestry company in South Africa bought out by New Forests
In a significant move, South African forestry and sawmilling company Rance Timber has recently been acquired by global forestry investor New Forests. This strategic partnership aims to further Rance Timber's efforts in improving the genetics of the trees and silviculture, as well as focusing on carbon sequestration, enhancing biodiversity, improving livelihoods, and promoting gender equity.
Established in 1910, Rance Timber is a family-owned business with over 1,400 employees across its forestry and sawmilling divisions. The company manages 14,000 hectares of pine plantations, with more than 40% of this area dedicated to protected indigenous forests, grasslands, riparian zones, and other vegetation types. Rance Timber's commitment to sustainability is evident, as they strive to improve biodiversity and water quality while maintaining a versatile mill and a good reputation within the markets.
The African Forestry Impact Platform (AFIP), co-developed with British International Investment (BII), is the investment fund behind this acquisition. The AFIP aims to raise up to $500m by the end of 2027, taking a long-term view with all of its investments. With the addition of Rance Timber, the AFIP is now present across five African countries - South Africa, Uganda, Tanzania, Mozambique, and Kenya.
BII anchored the AFIP with a $75m commitment in 2022, alongside Finnfund and Norfund who committed $48m and $76m respectively. This funding has increased the total raised to around $200m, setting the stage for impactful forestry projects across the continent.
New Forests, with more than 30 foresters employed directly, will continue to work with the Rance team to improve the forests, focusing on the four key areas mentioned above. The AFIP's first investment was the acquisition of Green Resources AS, an East African forestry development and wood processing company.
Rance Timber started leasing forestry assets in the Amathole region of the Eastern Cape from the South African Forestry Company in 2005, marking the beginning of their significant growth in the forestry sector. The company's operations have since expanded, with two sawmills in the Eastern Cape of South Africa manufacturing various timber products.
This partnership between Rance Timber and the AFIP promises a promising future for sustainable forestry practices in Africa, with a shared vision of creating a positive impact on the environment, local communities, and the economy.
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