--- title: "Shell retreats from South Africa amid migration crisis" type: "News" locale: "en" url: "https://longbridge.com/en/news/292026108.md" description: "Shell sold its 580 South African petrol stations to Abu Dhabi National Oil Company (Adnoc) for $1bn, ending a century-long retail presence. While Shell retains offshore drilling rights, the exit reflects broader Western company withdrawals amid South Africa's anti-immigrant unrest and economic challenges. Adnoc expands its African footprint by acquiring the licensed Shell brand, signaling a shift in market ownership as Middle Eastern firms replace Western ones." datetime: "2026-07-08T07:05:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292026108.md) - [en](https://longbridge.com/en/news/292026108.md) - [zh-HK](https://longbridge.com/zh-HK/news/292026108.md) --- # Shell retreats from South Africa amid migration crisis Energy giant Shell has made a major break with its century-old history in South Africa, selling its 580 petrol stations to Abu Dhabi National Oil Company (Adnoc). The $1bn (£748m) deal will allow the forecourts to retain the Shell brand under licence, and the company will keep drilling oil and gas off South Africa’s coast. But the sale closes a significant chapter in Shell’s presence in Africa, which dates back to colonial times. Julius Weil, a local merchant, began selling kerosene under the Shell brand in 1902, and in 1921, the company set up a refinery in Durban. It also marks a significant expansion for the state-owned Emirati giant Adnoc, which is steadily growing its exploration, trading and distribution activities across the world. Notably, it comes as South Africa witnesses a growing number of Western companies heading for the exit, as violent anti-immigrant protests underscore a period of unrest and uncertainty in Africa’s largest economy. Shell first flagged the divestment of its South African retail business, which reportedly had a 10pc market share, in 2024. “This decision was not taken lightly,” the company said at the time. “Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of.” ## Colonial roots In the 1980s, Shell was one of the targets of British anti-Apartheid activists, who picketed the company’s British garages and boycotted its products. Despite the sale of its petrol stations, Shell will remain in South Africa, exploring opportunities in the Orange Basin and Cape Basin off South Africa’s potentially oil-rich west coast. The company is also looking to drill for oil in the Wild Coast region to the east, but its plan has spent several years tied up in court challenges from environmental activists. “Shell intends to remain a long-term partner of South Africa, supporting the country’s energy needs and ambitions in areas that are aligned with our strategy and where Shell has differentiated capabilities,” the company said in a statement. Shell had already quit its broader African retail business in 2011, pulling out of 16 markets ranging from Morocco in the north to Namibia and Botswana in the south. Shell and BP also offloaded a shuttered South African refinery in 2024 to the country’s state-owned Central Energy Fund. Shell’s move comes amid a turbulent time in South Africa’s economy and politics. The country has been rocked by a spate of anti-immigrant protests, some of which have turned violent. At the end of June, 120 marches took place in one day, with 900 people arrested. Countries including Nigeria, Ghana and Malawi have repatriated as many as 25,000 citizens. The flare-up in anti-immigrant sentiment may have its roots in the country’s 33pc unemployment rate. Although South Africa is the continent’s most developed economy, its annual growth rate for much of the post-pandemic period has been below 1pc. Businesses face soaring energy costs, high crime rates and poor infrastructure, and the country’s politics has been rocked by corruption scandals. Elon Musk, who is South African born, has criticised the government’s racial policies, demanding an exemption from rules requiring foreign companies to give one-third control to black South Africans. In addition to Shell, British American Tobacco, Rolex, Nissan, BNP Paribas and HSBC are among the Western companies exiting or downsizing in the country. But in their wake have come businesses from China and the Middle East. Chinese carmaker Chery bought Nissan’s local factory, and now Adnoc has weighed in. “South Africa’s investments in critical transport infrastructure, alongside a growing driving-age population, reinforce the growth potential of fuel consumption,” Adnoc said in a statement. Adnoc will sell a 28pc stake to a local “empowerment partner”, complying with the rule to which Mr Musk objects. The company, which has also expanded into Saudi Arabia and Egypt, said its Shell purchase “marks a major step towards Adnoc Distribution’s ambition to become a global mobility and convenience retailer, while advancing its fuel retail footprint in Africa”. ### Related Stocks - [SHEL.US](https://longbridge.com/en/quote/SHEL.US.md) - [SHEH.US](https://longbridge.com/en/quote/SHEH.US.md) - [BP.US](https://longbridge.com/en/quote/BP.US.md) - [BTI.US](https://longbridge.com/en/quote/BTI.US.md) - [7201.JP](https://longbridge.com/en/quote/7201.JP.md) - [NSANY.US](https://longbridge.com/en/quote/NSANY.US.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [09973.HK](https://longbridge.com/en/quote/09973.HK.md) - [SHEL.WI.US](https://longbridge.com/en/quote/SHEL.WI.US.md) - [BP.UK](https://longbridge.com/en/quote/BP.UK.md) - [BATS.UK](https://longbridge.com/en/quote/BATS.UK.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) ## Related News & Research - [Shell (NYSE:SHEL) Earns Neutral Rating from Piper Sandler](https://longbridge.com/en/news/293630718.md) - [Namur Invest-backed Nonna targets EUR 23 million revenue by 2026](https://longbridge.com/en/news/293894254.md) - [South Africa's deputy finance minister resigns as chair of state asset manager](https://longbridge.com/en/news/293660755.md) - [The visa loophole that hinges on one deceptively simple word](https://longbridge.com/en/news/293821811.md) - [Raizen names Shell veteran Felix Faber vice chairman, replacing Anna Mascolo](https://longbridge.com/en/news/293676382.md)