Wood pellets market in Southern Africa

Earlier Report Observations

The wood pellets market in Southern Africa opened the period at 7 129 tons in 2018, with domestic production anchored by the Biotech Fuels plant in Howick, which leveraged local sawdust and wood waste for pellet manufacturing, largely exported to Europe. Imports remained substantial, supporting the overall market volume.

By 2020, market volume had declined to 4 562 tons as the revitalization of the idle Coega plant by Hive Energy and other new entrants boosted export orientation, reducing domestic availability. Government projects like the 25MW biomass plant under the Renewable Energy Independent Power Producer Programme signaled a commitment to renewable energy but did not immediately reverse the contraction.

From 2021 onward, the market continued to shrink, reaching 3 669 tons in 2023. Logistical barriers for transportation and competition from fossil fuels presented headwinds, even as consumer preferences shifted towards cleaner and more sustainable fuel options for residential and commercial heating.

Production wood pellets in Southern Africa

In kind, 2017-2020, t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

In 2020, Southern Africa produced 5 000 tonnes of wood pellets, showing only a marginal fluctuation compared to 2019. The largest decline occurred in 2018, at 0.0%, while the largest increase was also recorded in 2018, at 0.0%.

Annual dynamics of production in Southern Africa in kind, 2017-2020, t

In value, 2017-2020, K $ US

In 2020, the output of wood pellets in Southern Africa was valued at 1 058 thousand US dollars, marking a gradual uptick of 4.2% from 2019. The minimum value was recorded in 2019 at 1 015 thousand US dollars, while the maximum value was in 2018 at 1 094 thousand US dollars. The largest decline occurred in 2019, at 7.2%, and the largest increase was in 2018, at 4.2%.

Annual dynamics of production in Southern Africa in value, 2017-2020, K $ US

Exports wood pellets from Southern Africa

Exports in kind, t

Southern Africa's wood pellet exports increased for the second consecutive year in 2020, reaching 2 445 tonnes, which reflects a sharp gain of 31.5% compared to 2019. Over the period from 2017 to 2020, exports grew by 17%, with a compound annual growth rate of 5.4%. The minimum volume was recorded in 2018 at 1 756 tonnes, and the largest decline occurred in 2018, at 16.0%.

Annual dynamics of product's exports from Southern Africa in kind, 2017-2020, t

From 2017 to 2020, the country structure of wood pellet exports in kind was clearly led by Asia, not elsewhere specified, which accounted for 1.0% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Africa in kind, 2017-2020

Exports in value, K $ US

After a two-year reduction, wood pellet exports from Southern Africa increased in 2020, with exports valued at 517 thousand US dollars, which is 37.0% higher than the previous year. Between 2017 and 2020, exports rose by 17.9%, equating to an annualized rate of 5.6%. The minimum value was recorded in 2019 at 378 thousand US dollars, and the largest decline occurred in 2018, at 12.5%.

Annual dynamics of product's exports from Southern Africa in value, 2017-2020, K $ US

From 2017 to 2020, wood pellets from Southern Africa were supplied to a broad set of markets. Zimbabwe accounted for 3.6% of exports in value terms, Asia, not elsewhere specified for 3.5%, and Israel for 1.4%, together making up only 8.5% of total exports. Many smaller destinations formed the remaining 91.5%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Africa in value, 2017-2020

Imports wood pellets to Southern Africa

Imports in kind, t

Southern Africa's wood pellet imports declined for the second consecutive year in 2020, totalling 2 007 tonnes, which represents a 10.8% year-on-year loss. Over the period from 2017 to 2020, imports decreased by 45.5%, with a compound annual growth rate of 18.3%. The maximum volume was recorded in 2018 at 3 886 tonnes. The largest decline occurred in 2019, at 42.1%, while the largest increase was in 2018, at 5.6%.

Annual dynamics of product's imports to Southern Africa in kind, 2017-2020, t

Throughout 2017 to 2020, Germany remained the main supplier of wood pellets to Southern Africa, with a share of 2.8% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Africa in kind, 2017-2020

Imports in value, K $ US

Southern Africa's wood pellet import volume declined for the second consecutive year in 2020, with imports valued at approximately 616 thousand US dollars, corresponding to a controlled fall of 3.1% versus the previous year. Over the period from 2017 to 2020, imports decreased by 29.9%, with a compound annual growth rate of 11.2%. The maximum value was recorded in 2018 at 1 067 thousand US dollars. The largest decline occurred in 2019, at 40.4%, and the largest increase was in 2018, at 21.4%.

Annual dynamics of product's imports to Southern Africa in value, 2017-2020, K $ US

From 2017 to 2020, Germany and Italy consistently remained the main markets for wood pellet imports in value terms, together accounting for 28.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Africa in value, 2017-2020