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Alliance transforms fuel retail sector

March 11, 2016 4:45 pm by: Category: Africa & World, BUSINESS, Featured, Local, National, NEWS Leave a comment A+ / A-

Bonang Mohale, Executive Vice President of Shell Global RetailSAMUEL MUNGADZE
Deputy Editor
JOHANNESBURG – ONE of the country’s leading petroleum products suppliers and the National Empowerment Fund (NEF) recently announced an agreement that aims to transform the retail landscape within the petroleum sector.

The partnership between Sell Oil Company and the agency of the Department of Trade and Industry tasked with fostering empowerment launched the agreement was launched at an NEF-funded Shell service station in Cosmo City, north-west of Johannesburg.

The NEF/ Shell partnership, a programme which facilitates access for black South Africans to own and operate Shell’s service stations in a sustainable and successful manner, will be implemented.

Chairperson of Shell South Africa, Bonang Mohale, Executive Vice President of Shell Global Retail, István Kapitány, and NEF Chief Executive Officer, Philisiwe Mthethwa, attended the launch.

“The energy sector was the first to adopt a transformation charter and it is in line with that trend that Shell’s ground-breaking target of 40 percent black-owned service stations, is coming to life,” said Mthethwa.

Mthethwa said the NEF looked forward to extending affordable loan funding for the benefit of black entrepreneurs who Shell had pre-approved to own and manage a retail service station.

“Within the NEF’s franchise portfolio of R709 million, service stations rank as the most vibrant and successful, so this agreement is one that holds out meaningful promise and opportunity for black entrepreneurs,” Mthethwa added.

Mthethwa explained that in the spirit of addressing this challenge, Shell and the NEF decided to sign a cooperation agreement in order to provide funding to black retailers with a majority share of no less than 51 percent.

Mohale said the aim is not to only appoint black retailers, but to select high quality brand ambassadors who will receive the necessary training offered by qualified Shell Retail trainers.

“We want to ensure that we do not only comply with the rules and regulations governing the industry but we also attain leadership status in the transformation area. Shell realises that in order to achieve a successful implementation of this empowerment programme, a dedicated transfer of skills and entrepreneurship support need to be provided to incoming retailers,” said Mohale.

Once the selection and training process is complete, Shell will facilitate a retail site handover, which involves essential mentoring and support in the initial phases of the business operation.

Shell targets to have 40 percent black African ownership of company-owned sites by 2017.

To date, NEF has invested R300 million for the purchase of 63 petroleum service stations that are owned and managed by black entrepreneurs countrywide. These support 1 920 jobs.

The NEF’s total funded portfolio exceeds R7,1 billion, while strategic industrial projects are valued at over R27 billion.

The co-operation follows Shell’s commitment to transform its retail business to reflect South Africa’s demographics.

The country’s recent review of the Liquid Fuels Charter, a regulation that provides a framework for empowering black South Africans in the petroleum industry, revealed lack of capital was a major barrier faced by black entrants in operating and owning service stations.

Black owners are challenged with sourcing capital to invest, even when they demonstrate the willingness and capacity to operate in the industry.

– Guardian

Alliance transforms fuel retail sector Reviewed by on . SAMUEL MUNGADZE Deputy Editor JOHANNESBURG - ONE of the country’s leading petroleum products suppliers and the National Empowerment Fund (NEF) recently announce SAMUEL MUNGADZE Deputy Editor JOHANNESBURG - ONE of the country’s leading petroleum products suppliers and the National Empowerment Fund (NEF) recently announce Rating: 0

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