Shell is ditching its South Africa downstream business after Over a Century

Shell is ditching its South Africa downstream business after Over a Century

Shell has decided to stop its operations in South Africa after more than 120 years. They reviewed their businesses worldwide and want to focus more on performance and simplicity. This means they will sell their majority share in Shell Downstream South Africa (SDSA).

Shell has been in South Africa since 1902 and has about 600 gas stations in the country. They also own part of the Sapref refinery, which is the biggest in South Africa, together with BP Plc’s southern African unit. However, the refinery closed in 2022, and plans to sell it to the government’s Central Energy Fund fell through due to flood damage.

The goal of selling their South African business is to keep it running well, keep the Shell brand there, and make sure their employees and customers are taken care of under new ownership.

Shell's decision is a big one, considering its long history in South Africa and the positive impact it has had on the country. They have supported the nation by providing energy, promoting fairness and inclusion, and investing in social programs.

The news of Shell leaving South Africa comes after a disagreement over terms with their partner, Thebe Investment Corporation, which is linked to the ruling ANC party through its majority shareholder, the Batho Batho Trust.

As Shell looks ahead to changes in the energy industry, they are focusing more on electric vehicles. They plan to sell 1,000 gas stations in 2024 and 2025.

Shell leaving South Africa shows how the energy industry is changing. Companies like Shell need to change to stay competitive in this new world.