By Ana Monteiro.
The Central Energy Fund (CEF) has outlined plans to revive oil-refining capacity that will see local processing of crude at least triple, potentially reducing dependence on fuel imports.
The CEF intends to rebuild the Sapref refinery south of the port city of Durban, which was idled after 2022 floods in the KwaZulu-Natal province damaged the facility, targeting throughput of 400 000 barrels daily, it said in a statement Wednesday.
It would then raise this to 650 000 barrels daily subject to investment and approvals.
It didn’t provide details on funding and timing.
Redeveloping the refinery would boost local processing capabilities and cut reliance on imports, which account for about 61% of supply compared with 22% in 2019.
The continent’s biggest economy only has two operational crude-refining facilities, being Sasol’s Natref facility and Astron Energy’s plant in Cape Town, with a combined total capacity to process about 208 000 barrels a day.
Coupled with the Sasol coal-to-liquids plant at Secunda that processes about 150 000 barrels daily, the CEF’s plan would more than double total refining capacity in South Africa.
“South Africa cannot afford to lose sight of the strategic importance of domestic refining capacity,” CEF CEO Tshepo Mokoka said.
In the meantime, the fund will use existing tanks and transfer infrastructure to bolster imports, it said.
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