South Africa, the continent’s most industrialized economy, is grappling with a major energy shortfall as roughly 49% of its oil-refining capacity remains shut.

Once a stronger player in the regional refining landscape, the country has seen its capacity halved over the past five years, a decline fueled by chronic underinvestment and a series of operational setbacks.

The impact is now being felt at the pump and across key sectors, as South Africa increasingly leans on foreign imports to keep the economy running.

According to Transnet SOC Ltd., the state-owned logistics company, imports are now required to cover more than 60% of the country’s fuel needs.

Figures from energy consultancy CITAC show that in the first quarter of 2025 alone, South Africa imported 4.2 million tons of refined petroleum products.

Annual imports are projected to reach around 15.5 million tons—nearly double Kenya’s estimated 8.9 million tons and more than double Nigeria’s 6.4 million tons.

This rising dependency follows the prolonged closure of several key facilities. The Sapref refinery in Durban, South Africa’s largest, remains out of operation.

Owned by the Central Energy Fund (CEF), Sapref once processed 180,000 barrels per day.

Engen’s refinery in Durban, now controlled by Vitol, is also shut, removing another 120,000 barrels per day from national output.

The disruption doesn’t stop there. Sasol’s Natref refinery, which typically contributes 108,000 barrels per day, is offline due to an outage.

PetroSA’s gas-to-liquids plant, also under the CEF, has gone dark, taking another 45,000 barrels per day offline. Only two refineries remain functional.

Sasol’s Secunda plant, which converts coal and gas into 150,000 barrels of fuel per day, and Glencore’s Astron refinery in Cape Town, producing 100,000 barrels daily.

Together, they supply less than half of the country’s previous refining output.

The South African government has taken initial steps to restore domestic production.

In 2023, it acquired the dormant Sapref facility from Shell Plc and BP Plc, a move aimed at reviving local refining capability. But for now, the gap is being filled by international traders.

Swiss commodities firm Gunvor was among the companies shortlisted in April to acquire Shell’s retail fuel network in the country, according to people familiar with the discussions.

With local output stalled and energy imports climbing, South Africa’s refining challenges are quickly becoming a test of energy security and policy execution in one of Africa’s most crucial markets.