By The Minister for the Department of Mineral Resources and Energy (DMRE) Mr Gwede Mantashe told industry captains and investors at the 30th AOW Invest in African Energy Conference in Cape Town that the energy sector in South Africa has the potential to grow the economy.
With the aim to woo investors to invest in the energy sector of the country, Mantashe enticed the industry captains that the Government of National Unity (GNU) is in agreement that the sector is a flywheel that will propel the realisation of its three point priorities, namely to drive inclusive economic growth and job creation, to reduce poverty and tackle the high cost of living and to build a capable, ethical, and developmental state.
Energy demand is constantly growing in the country, to address or meet the demand; Minister Mantashe said a diversified energy mix remains a requisite and will help in addressing energy poverty in the country and ensure a continuous and reliable energy supply.
The challenges he highlighted in the energy sector provide an opportunity for both domestic and foreign investors, of which he invited to invest in the country.
Though crude oil has broken the 100 million barrels per day mark globally in 2023, Gwede Mantashe says South Africa’s experience over the past five years has proven that the petroleum sector has been running a second fiddle to other sources of energy, in particular the renewable energies.
“In contrast to the sustained crusade on oil and gas development, the reconfiguration of the Department of Mineral Resources and Energy (DMRE) into two Departments allows us time and space to give a focused attention to the entire petroleum value.
As part of government concerted efforts to provide for the orderly development of the country’s petroleum resources, ensure equitable access, and promote the participation of the historically disadvantaged persons in the sector, the department developed the Upstream Petroleum Resources Development Bill which has since been adopted by both houses of Parliament and is ready for assent into law by the President,” he said.
“This is the first of its kind in the South African history as the Upstream Petroleum Industry has always been regulated as an appendage to other industries. We are convinced that once the bill is enacted into law, it will not only pave the way for an orderly development of the Upstream Petroleum Industry but will boost the country’s economic growth to 8% as is the case with Namibia which increased its potential to double its economy by 2040 on the back of its recent discoveries of oil and associate gas,” continued Minister Mantashe.
Mantsashe told the conference that the government has made strides to ensure that South Africa benefits from the national patrimony, as such, they have established a state owned company the South African National Petroleum Company (SANPC) to carry the state share in petroleum projects and exploit some resources in its own right.
“The South African National Petroleum Company (SANPC) Bill is undergoing cabinet processes ahead of its onward transmission to parliament for consideration and adoption. The enactment of the bill into law will enable the SANPC to operate as South Africa’s leading player in the petroleum industry, thereby ensuring energy security, foster partnerships, and propel economic growth on the back of
petroleum resources,” said Gwede Mantashe.
“Additionally, the Petroleum Products Amendment Bill (PPAB) is also undergoing cabinet processes for approval to publish for stakeholder comments. The bill seeks to; firstly, promote the transformation of the petroleum and liquid fuels sector by encouraging participation and equity,
secondly, ensure that the persons involved in the manufacturing or sale of liquid fuels are regulated, and lastly, to ensure that the petroleum sector contributes to the country’s economic development,” he continued.
