Speaking at the launch of the newly formed SA National Petroleum Company in Johannesburg, Mantashe painted a stark contrast between SA and its neighbour Namibia, which has made major oil discoveries in recent years. While Namibia moves ahead, SA remains entangled in court cases that stall exploration.

“In government, this is known about me: I always say SA is a low-growth economic jurisdiction,” he remarked. “When we achieve one percent growth, we celebrate. But this country has the potential to grow by between five and eight percent annually if we are allowed to access our oil and gas reserves.”

Mantashe voiced frustration over repeated legal interventions that halt energy exploration projects. He noted that while other countries are unlocking the value of their natural resources, SA’s regulatory environment continues to act as a barrier.

“What a strange country,” he said. “If we touch oil and start exploration, we’re taken to court, and the process drags on indefinitely.”

The Minister’s comments come at a time when the government is looking to revitalise economic growth through the energy sector. The establishment of the SA National Petroleum Company is intended to drive forward the country’s energy ambitions, though much hinges on the legal and policy frameworks surrounding exploration rights.

Observers say unlocking SA’s oil and gas reserves could offer a much-needed boost to economic activity, employment, and energy security, but only if regulatory obstacles are addressed.

--ChannelAfrica--