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Legislative red tape holds back growth in SA

09 Dec 2024 - by Liesl Venter
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The energy sector across Africa is undergoing a significant transformation, with South Africa seeing a downturn in oil and gas projects due to unfavourable legislation and increasing opposition from environmental activists, among other economic challenges. The seismic surveys required for exploration in South African waters and landsites have faced stiff resistance, further complicating efforts in the oil and gas space.In contrast, neighbouring countries such as Namibia, Angola and Mozambique, along with east and west African nations like Kenya and Ghana, are emerging as attractive alternatives. Even opportunities as far afield as the Ivory Coast are drawing attention, said Kevin Melnick, managing director of Pentagon Freight.“While oil remains the primary focus, gas is gaining traction, alongside the growing prominence of renewable energy sources such as wind, solar, and hydro,” he told Freight News. “Renewable energy projects, in particular, are becoming a key growth area and are on the rise, with increased investment and more multinational companies leveraging their expertise to deliver turnkey solutions across the continent.”In 2024, Pentagon Freight celebrated its 50th anniversary in business and has a longstanding logistics presence in Africa, specialising in the oil, gas and energy verticals, and more recently, the renewables sector. “Logistical complexity remains a constant, especially with a marked increase in projects for new exploration and projects happening in rural areas. These come with unique challenges, from navigating diverse customs interpretations to overcoming infrastructure hurdles. Compliance and f lexibility are essential in this industry, with the ability to adapt quickly to both short- and long-term project demands proving critical to success,” said Melnick.He added that while volumes for oil and gas in SA had decreased of late there had been a marked increase in the renewables sector. “Renewables are leading the charge, with a buoyant outlook for the future.”According to Melnick, the demand for dependable and cost-efficient logistics solutions will continue to rise as Africa’s energy landscape evolves. “Adaptability, compliance, and expertise will remain essential for navigating the complex mix of opportunities and challenges on the continent,” he said. LV

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