07/06/2024
Funding for petrol stations
bp Southern Africa partners with sefa to empower black business to enter energy
Join us as we unpack processes of how to get a petrol station licence on the 04th July at the Co.Space in Midrand | Book your seat here https://wa.me/p/7707676522623951/27685532951
bp Southern Africa (bpSA) has entered into a co-operation agreement with the Small
Enterprise Finance Agency (sefa), aimed at providing finance to empower black-owned
businesses to acquire and operate service stations and related forecourt retail businesses.
The total value of the agreement is just over R58m, comprising of an initial R18m investment
and a further R40m that sefa will receive from the proceeds of all annual loan recoveries
ceded to the bp/sefa fund from a previous ESD Fund. The investment will be used by sefa to
finance 50% of the capital needed by approved businesses, to acquire and develop service
station properties. bpSA and sefa will jointly approve the beneficiary businesses.
“As part of our transformation journey and strengthening our convenience portfolio, building
strong partnerships is key in ensuring the successful delivery of our business objectives,
which are underpinned by a customer-centric strategy,” says Taelo Mojapelo, bp Southern
Africa CEO. “As part of our retail transformation agenda, we aim to have 70% of our service
stations operated by black dealers by 2025. To put that in context, bpSA currently has over
500 branded retail stations throughout the country, a number that is set to grow in the next
year.”
The agreement is set to run for five years, and bpSA will contribute to the fund annually to
ensure its growth and future impact. Both parties have agreed that it may be renewed.
“Service station forecourts have become retail hubs that deliver a service to surrounding
communities as well as motorists and present a range of opportunities to business owners.
bpSA is looking to redefine convenience in key focus markets to offer customers what they
need, where and when they need it,” says Mojapelo.
The global forecourt retail market was said to be worth $190.6 billion in 2019 with a predicted
compound annual growth rate of 3.6%, higher in emerging markets, according to KPMG. It is
also worth noting that in South Africa the forecourt retail business alone is worth an estimated
R40bn a year, representing an opportunity for emerging dealers.
“Helping black-owned businesses enter this sector is a huge opportunity to create sustainable
enterprises that provide employment opportunities. Access to capital is one of the main
barriers to building a thriving entrepreneurial business community and we are proud to be
working with bp to open up the energy sector to more black players,” says Mxolisi
Matshamba, CEO at sefa. “We are delighted to be working with bpSA to drive further
transformation of the country’s service stations.” Further and according to the study conducted by SAPIA in 2019, despite being pre-Covid, the oil
industry accounted for 3.2% of the country’s Gross Domestic Product and created 250 000 jobs,
representing 1,5% of total employment levels in South Africa.
“The fuel industry in South Africa remains one of the strategic importance in ensuring sustainable
economic growth. With the imminent recovery of the economy, the industry has a larger role to play.
The strategic importance of the sector may not be fully beneficial if it is not intended to stimulate
increased growth and economic transformation, and access to resources by women, youth and
persons with disabilities. To this effect, the government has created enabling platforms through the
introduction of legislation, policy mandates, and regulations.
Access to finance, market, lack of skills and non-financial support have remained challenges
to achieving sustainable transformation in this sector. In this regard sefa-bpSA agreement is
a deliberate public-private partnership in promoting and advancing transformation in this
industry, says Mxolisi Matshamba sefa-CEO.”
Interested parties are advised to apply for funding via sefa, which will be responsible for
managing the loan process, and providing support and oversight to successful retailers.
About bpSA
bp has operated in Africa for almost 100 years, pursuing a range of interests from crude oil
importation and refining to the distribution and marketing of gas and refined products through
a network of over 500 service stations, Aviation, bp Marine and Castrol. The head office for
bp Southern Africa (bpSA) is based in Rosebank, Johannesburg.
The core bp brands include the multi-award-winning bp Ultimate fuels, Wild Bean Café, Pick
n Pay (PnP) Express and bp Express convenience brands.
About sefa
The Small Enterprise Finance Agency( sefa) is an agency of government with a mandate to
provide finance to SMMEs & Cooperatives through a hybrid of wholesale and direct lending
channels.
If you need a business plan for the SEFA | BP petrol station application, email [email protected], Connecting your brand to the world
