The South African National Petroleum Company (SANPC) has officially made its debut, heralding what many believe is the dawn of a transformative era for South Africa’s energy sector. Launched during the Africa Energy Week (AEW) 2024, held from November 4-8 in Cape Town, SANPC aims to unify the country’s energy resources to tackle pressing challenges and drive economic revitalization.
At the forefront of this transformation is SANPC CEO Godfrey Moagi, who has recently been recognized as one of the African Energy Chamber’s “Top 40 Movers and Shakers to Watch in 2025.” This acknowledgment reflects his alignment with the priorities of energy security, investment mobilization, and local empowerment as South Africa gears up for substantial changes within its energy sector.
“The Top 40 list recognizes those driving Africa’s energy future through collaboration and transformative policies,” stated NJ Ayuk, Executive Chairman of the AEC, emphasizing the strategic importance of leaders like Moagi.
SANPC’s establishment is significant, combining the capabilities of three key historical entities: iGas, PetroSA, and the Strategic Fuel Fund (SFF). This merger aims to eliminate inefficiencies and optimize operations, with Moagi noting it is projected to generate operational synergies worth around ZAR1.5 billion (approximately $81 million).
At AEW 2024, Moagi presented SANPC’s vision to stakeholders, illustrating how the company positions itself as integral to enhancing energy security and local infrastructure, especially considering the country’s reliance on imports, which presently fulfill 65% of its refined fuel needs. This heavy import dependency is predicted to cost the South African economy between ZAR170 billion to ZAR174 billion ($9.2 to $9.4 billion) annually by 2025.
“SANPC is more than just another state-owned enterprise; it symbolizes a new era for South Africa's energy market,” asserted Minister of Mineral and Petroleum Resources, Gwede Mantashe. “To improve operational efficiency within the Central Energy Fund (CEF) value chain and deliver shareholder value, we sought to minimize duplications.”
South Africa’s refining capabilities have seen drastic declines, dropping from 80% utilization rates in 2010 to around 35% by 2022 due to aging infrastructure and chronic underinvestment. A flagship project on SANPC’s radar is the rehabilitation of the Gas-to-Liquids (GTL) refinery situated in Mossel Bay, which has been inactive due to feedstock shortages. The company is also exploring possibilities to convert obsolete refineries like Sapref, turning them instead to integrated petrochemical hubs to align with global trends.
Guided by the SANPC Bill, which aims to streamline regulatory processes and centralize import controls, SANPC is strategically positioned to counteract import dependencies and increase local refining capacities. The bill intends to peg fuel prices to local refining costs, discouraging profit-driven import substitution and encouraging the growth of local energy resources.
Partnerships are also pivotal to SANPC’s ambitious agenda. At AEW 2024, Moagi emphasized the importance of cross-border collaboration, particularly with Namibia, leveraging shared resources in the Orange Basin. “By working together, we can close SADC’s projected 70% refining deficit by 2030 and create a unified, resilient energy sector,” Moagi noted, underlining his commitment to regional cooperation.
On the global stage, SANPC is actively seeking partnerships with leaders like Petrobras to learn how to appropriately develop South Africa’s offshore resources. “We look to Petrobras’s approach as a model for how we can utilize South Africa’s offshore resources, especially in the Orange Basin,” he stated.
“In this increasingly volatile and disrupted world, our vision aligns with the need for state-owned enterprises (SOEs) to spearhead infrastructure and industrial development,” Moagi elaborated. “While we are open to learning from global leaders, our main priority is to shape a sector serving South Africa's populace and bolstering economic growth.”
Looking forward, SANPC will participate at the Invest in African Energy (IAE) Forum scheduled for May 2025 in Paris, where Moagi will engage with international investors on the theme: “Pioneering Africa’s Energy Boom: Strategic Investment for Maximum Returns.” Through this forum, SANPC aims to position itself as not just a participant but as a leader at the forefront of Africa’s energy transformation.
“We are working toward the future where Africa emerges as a net energy exporter, and SANPC plays a pivotal role,” concluded Moagi. It is clear as SANPC charts its path forward, it holds the potential to address South Africa’s significant energy challenges, fostering not only growth domestically but also within the wider regional energy market as part of Africa’s energy renaissance.