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South Africa Launches Oil Giant to Revive Energy Sector

South Africa has officially launched the South African National Petroleum Company (SANPC), a new state-owned oil enterprise designed to consolidate and energize the country’s long-stalled hydrocarbons sector. Formed from the merger of PetroSA, iGas, and the Strategic Fuel Fund, SANPC will operate under the Central Energy Fund and is already integrating staff and assets to streamline operations. The aim? Reducing oil imports, bolstering energy security, and tapping into over R95 billion in potential investment.

South-South collaboration rises in the energy sector

In Southern Africa, the South Africa–Mozambique gas-to-power integration illustrates the value of cross-border energy ties. South Africa imports natural gas from Mozambique’s Pande and Temane fields via the ROMPCO pipeline, co-owned by Sasol. This gas fuels both industrial applications and power stations, forming one of the region’s most integrated energy corridors and strengthening economic ties through energy interdependence.

Energy Sector Delivered Mixed Results in 2024

The S&P 500 closed out 2024 with a total return of 23.3%, building on its 24.2% gain in 2023. Despite a weaker finish to the year, the index notched 57 record closes, fueled by optimism around artificial intelligence (AI) and the Federal Reserve’s interest rate cuts. Every sector in the index posted gains for the year, but seven of the eleven sectors underperformed the broader benchmark, while five delivered returns of at least 20%.