#AOW2024: Mantashe shifts focus to black participation in gas sector
8 Oct 2024
Minister of Mineral and Petroleum Resources, Gwede Mantashe, used his opening keynote at Africa Oil Week to stress the importance of Black Economic Empowerment and stable policymaking in the country's emerging oil and gas sector. He explained that inclusive growth is a business imperative, Mantashe called for increased participation by black South Africans in the industry to ensure sustainable economic development.
“Black economic empowerment is not just something you do; it’s an imperative for the success of business,” Mantashe stated.
He argued that the full participation of historically marginalised groups is critical to South Africa’s growth – saying that environmentalists are not considering the workers in the fossil fuel industry.
“If you marginalise 80% of the population, that business is running on only 20% of the potential market,” he noted.
“You can’t choose between developing natural resources and protecting the environment, it’s something you have to do together.”
The rise of black capitalists
Mantashe said that the country can’t claim any real progress until black capitalists begin to emerge.
“It irritates sometimes to have to explain this to an investor, but we have to persuade them that it is necessary,” he said.
“We want to see evidence of black capitalists emerging from the system. If there are no black capitalists, the system is not working.”
Government houses skills
Responding to questions from Bizcommunity in the press conference, Mantashe said that the government is focused on building capacity within its own institutions and will work in partnership with the private sector.
“Government is actually a host of many skills. However, we need to ensure that the allocation of tasks matches these skills more effectively.”
We won’t depend solely on the private sector – it has to be a partnership.
Mantashe further outlined the steps being taken to support the development of the upstream petroleum sector.
The Upstream Petroleum Resources Development Bill, which is currently in progress, aims to establish petroleum as an independent sector within the South African economy.
This legal framework is expected to bolster investor confidence and pave the way for increased exploration activities in the country.
Optimistic for a gas breakthrough
Mantashe is optimistic about the potential for growth in South Africa’s oil and gas sector, stating that discoveries in neighbouring Namibia have shown that the region has substantial unexplored reserves.
He projected that successful development of the sector could contribute between 5% and 8% to South Africa’s GDP, significantly boosting the economy.
Despite the opportunities, he expressed his continued frustration over ongoing opposition from non-governmental organisations (NGOs) to oil and gas projects.
He argued that many of these organisations are “anti-development” and often hinder progress under the guise of environmental protection.
“Our view is that what is required is responsible development, not stopping development,” he said.
Energy mix
The minister’s remarks come at a time when the South African government is seeking to balance economic growth with its climate commitments.
Mantashe continued the unified message that echoed his Electricity and Energy counterpart’s insistence on the need for a diversified energy mix, including the responsible development of fossil fuels, to ensure energy security while transitioning to cleaner energy sources.
The Africa energy transformation that we all strive for will require concerted efforts from all of us.
The speech set the tone for AOW, with Mantashe urging stakeholders to collaborate and share expertise to unlock the continent’s energy potential.
