South Africa’s Central Energy Fund (CEF) Group is projecting a net profit of R398 million (about $21.2 million) by 2030, backed by a strong balance sheet capable of funding its operations over the next few years.
The Parliamentary Portfolio Committee on Minerals and Petroleum Resources, having been briefed on the CEF’s 2025–2030 strategic and annual performance plans, on Saturday welcomed the group’s financial outlook.
It noted the positive trajectory, especially given that CEF and its subsidiaries — excluding the Petroleum Agency South Africa (PASA) — are Schedule 2 state-owned enterprises (SOEs), which are major public entities that operate with financial and operational independence while still being owned by the government.
In this category are SOEs such as power utility Eskom and national carrier South African Airways.
Schedule 2 SOEs are mandated to generate their own revenue without relying on direct state funding.
The positive financial outlook for CEF comes as efforts to restructure the group’s petroleum subsidiaries into a single entity, the South African National Petroleum Company (SANPC), progress despite experiencing delays.
CEF’s subsidiaries include PASA, the African Exploration Mining and Finance Corporation, iGas, PetroSA and the Strategic Fuel Fund (SFF).
In line with government’s broader objective to reform and rationalise SOEs for enhanced efficiency and economic growth, the CEF is finalising the merger of PetroSA, iGas and SFF into the new SANPC.
Initially scheduled to be operational by 1 April, SANPC’s launch has been postponed to 1 May.
The committee expressed concern over the missed deadline but was encouraged by the ongoing efforts to address challenges, including the transfer of employees and assets to the new entity.
Critical issues, such as securing approval from Ghanaian authorities for the repatriation of PetroSA Ghana Limited’s assets, are being actively pursued.
JN/APA