In line with the government’s broader objective to reform and rationalise SOEs for enhanced efficiency and economic growth, the Parliamentary Portfolio Committee on Minerals and Petroleum Resources welcomed the financial outlook presented by South Africa’s Central Energy Fund (CEF) Group to merge PetroSA, iGas, and SFF into the new SANPC.
It was noted that under the merging project, a net profit of R398 million (about $21.2 million)will be generated by 2030 to sustain operations through the years.
The committee further noted the improvement trajectory, especially since the CEF and its subsidiaries, minus the Petroleum Agency South Africa (PASA), are Schedule 2 SOEs. Major entities such as Eskom and South African Airways are governed by this schedule, which requires them to generate their own revenues quite independently from direct state funding while still maintaining ownership by the government.
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These upturns on the financial front come at a time when efforts are underway to restructure its petroleum subsidiaries into the SANPC, a process that, however, has met some delays. The SANPC, which had originally been scheduled to begin operations on 1 April, has shifted its launch date to 1 May.
Though the deadline was missed, the committee was, nonetheless, pleased with the progress made in addressing the remaining challenges like the transfer of employees and assets to the new entity. Key things, such as approval from the Ghanaian authorities for the repatriation of the assets of PetroSA Ghana Limited, are being actively pursued.
CEFs subsidiaries to date include PASA, the African Exploration Mining and Finance Corporation, iGas, PetroSA, and the SFF. The consolidation of PetroSA, iGas, and the SFF into SANPC encompasses an important stride in the government’s agenda to consolidate operational gains and financial sustainability of key SOEs.
