Shell will discontinue its downstream operations in South Africa by selling its shares in a local company, marking the end of 120 years of activity in the region.
The company stated that this decision is part of its strategy to optimize its global operations for long-term growth and sustainability. Economic experts interpret this move as a sign of South Africa’s energy challenges and deteriorating business environment, potentially hindering foreign investment and competitiveness.
Reports from City Press and the Sunday Times highlight a dispute between Shell and its partner, Thebe Investment Corporation, revealing broader tensions in the country’s business landscape.
Additionally, environmental activists have criticized Shell for its offshore activities, citing risks to marine life and coastal communities, further complicating the company’s decision to exit the South African downstream sector.
