---
title: "Shell confirms intention to divest from South African downstream operations"
description: "Shell Plc has confirmed weekend media reports that it plans to divest from South Africa. This will entail the sale of its downstream assets — effectively the over 500 service stations or forecourts it operates in the country."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "NEWSFLASH"
author: "Ed Stoddard"
author_url: "https://www.dailymaverick.co.za/author/ed-stoddard/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-05-06-shell-confirms-intention-to-divest-from-south-african-downstream-operations/"
published: "2024-05-06T14:22:16"
updated: "2024-05-07T05:45:24"
lang: "en-ZA"
word_count: 258
---

# Shell confirms intention to divest from South African downstream operations

> Shell Plc has confirmed weekend media reports that it plans to divest from South Africa. This will entail the sale of its downstream assets — effectively the over 500 service stations or forecourts it operates in the country.

By Ed Stoddard · Published 6 May 2024, 16:22 SAST · Updated 7 May 2024, 07:45 SAST

## Key points
- Shell has decided to bid farewell to its South African downstream operations, citing a strategic reshuffle towards performance, discipline, and simplicity, leaving behind a legacy of 120 years in the country's energy scene and potentially sparking a row with BEE partner Thebe Investments over the value of its stake.
- Shell plans to divest its shareholding in Shell Downstream South Africa as part of a broader portfolio reshaping strategy.
- The decision follows a comprehensive review of the Downstream and Renewables businesses globally, aligning with Shell's focus on performance and simplification.
- Reports indicate Shell's exit from South Africa, with potential disputes over the value of its BEE partner Thebe Investments' stake.
- Shell's energy transition strategy includes divesting from service stations to focus on electric vehicle charging options, impacting its 120-year presence in South Africa.

## Content

“Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA),” the oil giant said in a statement in response to *Daily Maverick*’s queries.

It said this decision was taken in the wake of a comprehensive review of “... the Downstream and Renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline, and simplification”.

This confirms weekend reports in *City Press* and *Sunday Times* that Shell planned to exit South Africa. Shell provided no comment on the reports that it was also locked in a row with its BEE partner Thebe Investments over the value of the latter’s stake.

In its latest energy transition strategy report in March, Shell said it planned to divest from 1,000 service stations in 2024 and 2025 as it pivots to charging options for the electric vehicle market. It seems that South Africa’s service stations fit that bill.

The move will mark the end of an era as Shell has been a fixture of South Africa’s energy landscape for 120 years — a [presence that saw it targeted by anti-apartheid campaigners in the 1980s](https://www.aamarchives.org/campaigns/barclays-and-shell.html).

Shell House in downtown Joburg was the former HQ of the African National Congress (ANC) and was a donation from the oil company to the party.

The move will also be seen as the latest blow to South Africa as an investment destination in the wake of mining giant [BHP’s bid for Anglo American minus most of its assets](https://www.dailymaverick.co.za/article/2024-05-02-bhp-says-anglo-merger-proposal-not-a-snub-to-sa-as-executives-launch-local-charm-offensive/) in the country. **DM**