Public Platform: ‘Keeping the land wet’: security of supply and entry in the South African liquid fuel wholesale sector
15th October 2014
The strategic importance of maintaining security of supply seems to trump efforts to increase entry and participation, particularly from a BBBEE perspective, in the wholesaling of liquid fuels in South Africa. Historically, the sector has been dominated by multinational fuel majors and there has been muted progress in terms of introducing new, black ownership at the wholesaling level. Access to supply, infrastructure, capital and customers still constrains increased participation in the sector and is likely to do so for some time to come. In wholesale distribution, many new entrants have failed and exited, and survivors are generally not effective competitors to incumbent firms. Is the strategic behaviour of incumbent firms a further handicap to increased rivalry? Are government regulations aimed at achieving the objectives of increased competition delivering this in practice?
This CCRED public platform invites key stakeholders from Government and the private sector to debate the key questions in the sector – Does entry matter and for whom? Do short-term security of supply objectives have to trump the benefits of dynamic rivalry and increased participation in the long run? How do the actions of incumbent firms and regulators make successful entry easier or more difficult? We also draw on the role of DoE and NERSA as key agents in influencing the path of development in the sector.
An expert panel including Sisa Njikelana (Greenshare Connect), Peter Morgan (LFWA), Avhapfani Tshifularo (SAPIA), Genna Robb (CCRED) d chaired by Zavareh Rustomjee (Zavareh Rustomjee & Associates) will debate these issues.
VENUE: CLICO BOUTIQUE, 27 Sturdee Avenue, Rosebank, Johannesburg
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