There is no cause for worry over Shell’s exit from the South African lubricant market, stakeholders told Blenders’N’Dealers. According to a press statement, Shell explained that it has sold its shareholding in Shell Downstream South Africa (Pty) Ltd (SDSA). However, Shell emphasised that “SDSA is expected to maintain its operating capabilities and the Shell brand, with no material impact expected for you. Our service stations are open for business and will continue serving you with the highest standards”. Cliff Classen, Sales and Marketing Director for Africa at Penthol S.A., said that Shell is following the template of other multinationals by securing a branding agreement with a local entity in the country.

Similarly, Patrick Swan, principal at Aswan Consulting in Cape Town, South Africa, said that multinationals will not disappear from the African lubricant market. However, he explained that their operations “will be taken over by local operators across the African continent.”  Shell’s exit follows in the footsteps of other multinationals that have exited the South African lubricant market, including Chevron, Puma, and Engen.

No Cause for Concern Over Shell’s Exit .— By Our Reporter.

Classen explained that the exit of multinationals from the African lubricant market is a reality because multinationals are adjusting their operations to cater to renewables and cleaner energy alternatives. “Regrettably, this is a trend across Africa for these multinationals,“ Classen said. “They are moving to renewables and cleaner energy alternatives. Africa is considered the last market for obsolete, declining, and carbon-intensive fossil fuels and lubricants.” Shell recently exited the South African downstream market, including divestment from its lubricant operations in the country, said Classen.