South Africa could have reduced its oil import bill by approximately $4.7 billion had it not closed a significant portion of its refining capacity, according to the South African Reserve Bank (SARB).
In an economic note published last week, the SARB estimates that import expenditure could have been, on average, 6.1% lower over the four years to 2024, had dependence on imported refined petroleum products been capped at 25%.
The closure of refineries has reduced output across the oil-related industry by around 20% since 2019, resulting in an estimated loss of 5,400 direct and indirect jobs.
South Africa's refining capacity has halved over the past decade, with imported refined products now accounting for more than half of domestic fuel consumption.
According to the central bank, this dependence heightens the country's exposure to international price shocks, shipping disruptions, and rand volatility.
Africa's largest economy currently operates only two functioning oil refineries: Sasol's Natref facility and Astron Energy's refinery in Cape Town. Together, they have the capacity to process approximately 208,000 barrels of oil per day.
Sapref Reconstruction Could Reshape the Landscape
The South African government is seeking to recover part of the lost capacity. The Central Energy Fund recently announced its intention to rebuild the Sapref refinery, located south of Durban, which has been idle since floods damaged the facility in 2022.
The project envisions a processing capacity of around 400,000 barrels per day, which could significantly alter South Africa's refining capacity and reduce its reliance on imported refined products.
The dependence on imports has also exposed consumers to rising prices. Petrol and diesel reached record levels earlier this year, against a backdrop of sharply higher oil prices linked to the conflict involving Iran.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/14/mundo/africa/africa-do-sul-fecho-de-refinarias-custou-47-mm-em-importacao-de-petroleo-ao-pais/
