Energy committee's Luzipo says Shell's move to exit SA 'a matter of concern'
Sahlulele Luzipo said that Shell’s decision to divest is part of a trend by the company to scale down its operations on the continent.
A Shell petrol station. Picture: Brandon Bell / Getty Images via AFP
JOHANNESBURG - Chairperson of the Portfolio Committee on Mineral Resources and Energy, Sahlulele Luzipo, said that Shell’s decision to divest from South Africa was a matter of concern.
But Luzipo said that the timing of Shell's decision was not ideal as it comes at the end of their term.
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Trade union federation COSATU said that it was also concerned about possible job losses as the energy giant plans to exit its downstream business, which operates about 600 service stations or forecourts around the country.
Luzipo said that Shell’s decision to divest was part of a trend by the company to scale down its operations on the continent.
He added that foreign investment leaving the country was a serious concern whichever way one looked at it and said that it was a pity it happened at the end of the term when they would not be able to engage on the issue.
"Any company leaving South Africa every time when we need investment the most is a matter of concern. I think it would be irresponsible for any individual to create an impression that it is immaterial."
He said that Shell was one of the oil majors and that the company had built a very strong brand in the country.
Meanwhile, COSATU spokesperson, Matthew Parks, said that if Shell proceeded, measures must be put in place to protect local jobs.