Shell planning to exit South Africa, reports say

Two reports by the City Press and the Sunday Times say that petrochemical giant Shell is planning to exit South Africa.

According to the reports, citing sources tied to Shell’s black economic empowerment (BEE) partner in South Africa, Thebe Investments, the global group will divest its 72% stake in Shell Downstream South Africa.

This has led to conflict with Thebe over the value of its remaining 28% stake in the company.

Shell has over 600 forecourts in South Africa and has been granted exploring rights by the Department of Mineral Resources and Energy. It has been operating in South Africa for over a century and is an iconic brand among motorists.

Shell’s reported exit comes as other major global brands and companies tied to foundational industries in the country raise doubts about the viability and prospects of investment in South Africa.

Thebe and the department did not comment on the move, telling both papers that they do not comment on speculation, and that engagements with shareholders are confidential.