The economic imperative: South Africa deserves a fair shot at growth - Opasa

South Africa’s unemployment rate, currently at 32,9%, represents not merely a statistical indicator but a profound socio-economic crisis with far-reaching human consequences. For our nation, 32.9% means that 8.2 million people, including 62.4% of young South Africans aged 15 to 24, are unable to support themselves or their families. It means millions of our youth, our breadwinners, our graduates, and our entrepreneurs are locked out of the economy growing at a paltry 0.8%.

And yet, in the midst of this socioeconomic pressure, South Africa’s offshore petroleum potential remains largely untapped. This is not due to lack of resource, capability, or need, but because of a global narrative that increasingly penalises countries like ours for trying to grow.

This must change.

Before 1949, Qatar was one of the poorest nations in the world, its people eking out livelihoods through pearling and subsistence fishing. Today, revenues from a successful oil and gas industry help fund health care, education, and state welfare. Qataris enjoy among the highest per-capita incomes worldwide with poverty among nationals virtually eliminated.

Across Africa, nations like Ghana and Namibia are forging ahead with offshore exploration and production. For example, in Namibia, recent discoveries by international energy companies in the Orange Basin have the potential to double the country's GDP by 2040. The construction phase of offshore projects is expected to generate around 5 000 jobs over six to eight years. In Nigeria, the sector contributed 5.57% to the country’s GDP in 2024. 

And during the African Energy Indaba held between 17-20 June, the Algerian President Abdelmadjid Tebboune spoke of paving the way for a $50 billion investment drive over the next four years as part of the country’s commitment to working with international partners to bolster exploration and production of oil and gas.

But South Africa finds itself in the crosshairs of an aggressive and often misinformed campaign, where offshore development is cast only as an environmental threat, and not as a tool for empowerment – only the risks are centred, never the benefits. 

We ask: why is South Africa being treated differently?

Is it because of our vibrant civil society? Our strong legal system? Or is it because those who shape the global narrative see our country as the most pliable pressure point?

South Africa’s democratic openness and world-class legal and civil institutions are strengths, but they must be matched by equally principled engagement, not an imbalanced public discourse that ignores the country’s social and economic imperatives.

We do not deny the importance of environmental responsibility. Good stewardship of our planet’s resources compel it. But there is an inconvenient truth the world must face: for South Africa, energy development is not just an economic opportunity, it is a moral imperative for the youth of this country. It is inescapable that there is a direct correlation between reliable, abundant energy and prosperity. It is exactly how the West became healthy and wealthy with unprecedented rises in standards of living over more than a century.

The promise of inclusive growth, re-industrialisation, rapid job creation, and self-determination cannot be fulfilled without abundant, cheap and reliable energy. In our current context where renewable buildout is necessary in the short term but insufficient, hydrocarbons will remain an essential part of the mix. 

A just energy transition must balance the lived realities of countries like ours with low economic growth, high poverty, high youth unemployment, extremely high inequality and extremely low emissions. That means recognising the transformative role successful offshore petroleum development can play in unlocking value chains, developing SMEs, building skills, and stabilising public finances.

Imagine a future where offshore discoveries catalyse port revitalisation, training colleges, and technology partnerships. Where youth in coastal towns are trained not just in fishing or tourism, but in rig maintenance, marine logistics, and subsea engineering. Where South African energy companies employ thousands of people because it makes business sense to localise.

This is not a dream, it is a missed opportunity. Unless we act.

As an industry, we welcome scrutiny. We commit to local content. We accept our duty to operate safely and responsibly.

South Africa deserves a fair shot at building an inclusive energy future. Not one defined by imported narratives or binary choices, but by balance, pragmatism, good environmental stewardship and a deep love for this nation and its people.

The offshore petroleum sector is not asking for a free pass. We are asking for a level playing field. We are asking for the right to build, to grow, and to contribute. Because energy is not the enemy, poverty as a result of underdevelopment is.

Right now, South Africa cannot afford to fight the wrong battle.

Kerwin Rana leads the Local Content Committee at the Offshore Petroleum Association of South Africa (OPASA).

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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