The Central Energy Fund

Reducing SA’s Dependence On Imported Oil

By Fiona Wakelin

South Africa is a net importer of oil - i.e. we import more than we export - with our dependence on imported oil having increased significantly over the last 3 years, mainly due to the decline in domestic refining capacity.

Nigeria, Saudi Arabia, Angola, Ghana and the US constitute our main suppliers – although with the Trump tariff scenario, the US’s continued status as a provider is unclear.

In 2023, South Africa relied on imports for 61% of its petroleum product supply, with refined petroleum products coming mainly from the United Arab Emirates, India, and Oman.

The Central Energy Fund and SA’s Energy Supply

The Central Energy Fund in South Africa is a Schedule 2 state owned diversified energy company reporting to the Department of Mineral and Petroleum Resources. The mandate of CEF is to contribute to the security of energy supply of South Africa and the region through exploration, acquisition, development, marketing and strategic partnership.

Celebrating a journey of more than 70 years, CEF has played a central role in ensuring South Africa’s energy security supply, and making a significant contribution to the South African economy and being a strategic partner to the Department of Mineral Resources and Energy providing insights in support of policy development and regulation, - CEF.

The CEF Group’s subsidiaries are PASA, the African Exploration Mining and Finance Corporation (AEMFC), iGas, PetroSA and the Strategic Fuel Fund (SFF) and the CEF Group is in advanced stages of merging PetroSA, iGas and SFF to establish a single state petroleum company called South African National Petroleum Company (SANPC).

SANPC is part of government’s initiative to repurpose and rationalise state-owned enterprises to support the country’s growth and development.

Increasing Local Oil Refining Capacity

In 2024, CEF bought the 180 000 barrel-a-day South African Petrol Refinery in Durban for a symbolic R1 after BP and Shell had ceased processing at the plant in 2022. The Competition Commission approved the acquisition.

“We have noted with concern the declining local refining capacity which resulted in the country becoming a net importer of refined petroleum products.

“The Commission’s approval is important because it does not only authenticate the acquisition but reinforces South Africa’s concerted efforts aimed at guaranteeing adequate supply of liquid fuels in the midst of premature closures of refineries,” – Minister Gwede Mantashe.

CEF Group’s Healthy Balance Sheet

“Having been briefed on the 2025-2030 strategic and annual performance plans as well as the 2025/26 budget of the Central Energy Fund (CEF) Group and subsidiaries, the Portfolio Committee on Minerals and Petroleum Resources is encouraged by the healthy balance sheet of the CEF Group.

“The CEF Group’s balance sheet will fund the company’s operation until 2030, and the group is projecting a net profit of R398million by 2030,” – Parliament.

The positive financial outlook for CEF comes amid restructuring the Group’s petroleum subsidiaries into a single entity, the South African National Petroleum Company (SANPC).

The trajectory we are currently on of improving self sufficiency and increasing export potential crucial for our oil and gas sector, especially in the current state of global flux.