No ‘blanket drive’ to stop investing in SA, assures analyst after rumours Shell could pull the plug
Reporting has emerged that after more than a century in the country, oil giant Shell might be pulling out of South Africa following an apparent fallout with their BEE partner.
A Shell service station in Cape Town. Picture: Facebook/Shell Marchios Service Station
JOHANNESBURG - Despite concerns, business analyst Khaya Sithole says South Africa’s “not necessarily” on the verge of divestment drive.
The Sunday Times is reporting that after more than a century in the country, oil giant Shell might be pulling out of South Africa following an apparent fallout with their BEE partner.
This comes against the backdrop of news that global mining house, BHP, is proposing a takeover of Anglo American, together with the divestment of local assets.
Sithole spoke to 702’s Bongani Bingwa about the situation on Monday morning.
“What we are seeing unfortunately is that obviously there have been a couple of big transactions that seem to indicate those making investment decisions have decided to allocate capital elsewhere.”
He said, though, this did not automatically mean a “blanket drive to move out of South Africa”.
“It’s simply investment decisions being taken by companies that just happen to have a material influence and material profile out there,” Sithole explained.