BP to invest $540 million in South Africa, Mozambique in next 5 Years
BY PATRICK MCGROARTY
JOHANNESBURG -- BP Group said the energy company will invest more than $540 million in South Africa and Mozambique over the next five years.
Iain Conn, BP' s CEO for refining and marketing, said the company planned to invest about half that amount, some $270 million, to upgrade the refinery it shares with Shell in South Africa' s port city of Durban.
Mr. Conn said another $540 million would be invested in building and upgrading fuel terminals in both South Africa and Mozambique, including a 60 MMl terminal to be built outside Johannesburg.
The remainder would go toward building 120 new retail outlets in South Africa and upgrading 65 more, Mr. Conn said.
He said the investment was a sign of BP' s faith in the South African government' s ability to overcome daunting challenges of unemployment, the official rate is about 25% and slowing economic growth, projected to reach 2.7% this year.
Mr. Conn praised the government' s sweeping strategy for addressing those challenges, known as the National Development Plan (NDP), saying, the plan "is robust enough and contains the pragmatism and realism required to address South Africa' s major socioeconomic challenges."
Dow Jones Newswires