Thousands of jobs may be on the line as Shell ‘plans to leave SA’ amid BEE partner fallout

One of the country’s biggest fuel and energy companies Shell is reportedly ready to pack its bags and leave South Africa after its relationship with a BEE partner went sour.

Shell has operated in the country for 122 years and has been in partnership with Thebe Investment Corporation as its BEE partner for 22.

But Thebe’s decision in 2022 to exercise its pull and sell its 28% stake in Shell Downstream South Africa (SDSA) has caused a rift, with Shell accused of undervaluing Thebe’s stake, reported City Press.

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It said Thebe valued its portion at $200m (R3.7bn), while Shell saw it as worth even less than the $73m (R1.3bn) shareholders invested when the partnership began.

According to the Sunday Times, Shell has told Energy Minister Gwede Mantashe and trade & industry Minister Ebrahim Patel of its plan to leave SA.

A source told City Press that the company is expected to announce its plans to staff this week.

Both Shell and Mantashe declined to comment on the reports.

Watch Minister Patel speak on BEE and SA investment:

How many people could be affected?

While the number of jobs that could be on the line has not been revealed, Shell has around 94000 employees in more than 70 countries and territories.

Of these, there are around 4 000 workers in Africa, according to data analysed and collated by Statista.

South Africa is a major market for the company, with over 500 stations across the country.

Shell pulling out of Nigeria

The energy giant announced its plans to pull out of Nigeria completely earlier this year.

ALSO READ: Shell wins legal case over Nigeria oil spill

In January, Reuters reported Shell had agreed to sell its subsidiary in that country to a consortium for up to $2.4bn (R44bn).

Its time in that country had reportedly been filled with hundreds of onshore oil spills from theft, sabotage and operational issues. It began selling up in 2021 but will keep its interests in Nigeria‘s offshore sector.