Oil industry one of key drivers of economic activity in SA - study

The oil industry accounted for 3.2% of the country’s GDP in 2019, while creating a quarter of a million jobs, representing 1.5% of total employment in South Africa, a study commissioned by the South African Petroleum Industry (Sapia) showed.

© arsgera/123rf.com

JOHANNESBURG - The South African oil industry contributed R163 billion to the economy in 2019.

A study commissioned by the South African Petroleum Industry (Sapia) showed that the oil industry remained one of the key drivers of economic activity and job creation.

The oil industry accounted for 3.2% of the country’s GDP in 2019, while creating a quarter of a million jobs, representing 1.5% of total employment in South Africa.

Although the data is limited to pre-COVID-19 pandemic times, it has illustrated once more the interconnectivity of industry in the country.

The study by Sapia covered primary and secondary industries in oil from importation, finished products, distribution and storage.

Claire Lawrie presented the findings at a briefing on Monday: "And also in terms of investment, we often discuss in South Africa infrastructural and recovery of reinvestment. This is an industry that has had sustained capital investment in infrastructure and in the economy and indeed in 2019, the industry contributed R94 billion of capital investment."

The report also found that there was a 78% demand for petrol and diesel in South Africa, with the transportation sector in need of 80% of the products.

Download the Eyewitness News app to your iOS or Android device.