Shell exit: DA says ‘doomsday coalition’ will see ‘mass exodus’ of foreign investors
Shell’s pending departure from South Africa essentially means the sale of its downstream assets of the almost 600 service stations or forecourts it operates in the country.
A Shell petrol station. Picture: Brandon Bell / Getty Images via AFP
JOHANNESBURG - The Democratic Alliance (DA) says thousands of jobs are at stake as gas and oil company Shell plans to divest from South Africa.
Shell confirmed reports about its plans to leave the country’s shores because of disagreements with its local BEE partner, Thebe Investments.
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Shell’s pending departure from South Africa essentially means the sale of its downstream assets of the almost 600 service stations or forecourts it operates in the country.
The company is locked in a dispute with its BEE partner over the value of its stake in the local business.
But DA finance spokesperson Dion George said things could get worse after the elections.
“In the event of an ANC [African National Congress] and EFF [Economic Freedom Fighters] doomsday coalition, we will see a mass exodus of foreign investment from South Africa, because they simply have no confidence in the ability of our economy to generate the returns that justify their investment.”
George said over the past decade, the local economy had lost one trillion rand in foreign investment as a direct result of failed ANC economic policies like BBBEE.