The Constitutional Court’s decision to block offshore oil and gas exploration along South Africa’s Wild Coast has drawn mixed reactions from African National Congress (ANC) political leaders, with some hailing the ruling as a victory for communities and environmental justice, while others warn it could deepen uncertainty and discourage investment in the country’s petroleum sector.
The court recently set aside exploration rights held by multinational energy giant Shell and South African company Impact Africa, preventing the companies from exploring for fossil fuels off the Eastern Cape coastline.
Portfolio Committee on Mineral and Petroleum Resources chairperson Mikateko Mahlaule said the committee respects the authority of the Constitutional Court and recognises the importance of meaningful consultation with affected communities and careful consideration of environmental impacts.
However, Mahlaule voiced concern about the broader implications of the judgment for South Africa’s offshore petroleum industry.
READ: Shell loses Concourt battle over exploration of oil, gas in Eastern Cape
“The country cannot afford for potentially significant economic opportunities and job creation initiatives to remain permanently at the conceptual stage because of uncertainty around exploration,” he said.
Mahlaule argued that exploration is a necessary first step in determining whether resources exist and whether they can ultimately be developed to benefit the South African economy.
Concerns over investment and growth
According to Mahlaule, South Africa needs a regulatory framework that balances environmental protection with economic development.
“South Africa needs a regulatory framework that protects our environment and the rights of affected communities, while at the same time providing investors with sufficient certainty to undertake responsible exploration,” he said.
“If uncertainty continues to delay exploration indefinitely, we risk losing investment and opportunities for economic growth, skills development and employment.”
He warned that South Africa risks falling behind other resource-rich countries competing for exploration investment and said the committee would continue engaging with the Department of Mineral and Petroleum Resources on the implications of the ruling and broader challenges facing offshore exploration.
Community voices vindicated
In contrast, an ANC Eastern Cape member in the National Council of Provinces (NCOP), Advocate Nkosi Mwelo Nonkonyana, welcomed the judgment, describing it as a victory for communities whose concerns had been overlooked.
Nonkonyana said the ruling demonstrated that local communities have a right to participate in decisions that could affect their livelihoods and future generations.
“The ruling gives the voices and decision-making to the community about the things that have the potential to affect their lives and future generations, like mining,” he said.
“We cannot pursue profit at all costs and ignore its impact on the lives of ordinary citizens.”
He added that multinational corporations should take note of the judgment and ensure that communities benefit from projects that affect them.
“Multinationals should learn from this judgment that they will not be allowed to break our country further without ploughing back to the communities whose lives are impacted,” Nonkonyana said.
Their differing views come as environmental activists and community groups have long opposed exploration activities along the Wild Coast, arguing that they threaten sensitive marine ecosystems and coastal livelihoods. Industry advocates, meanwhile, contend that exploration is essential to unlocking potential energy resources and attracting investment.
Regulatory certainty and energy security concerns
Meanwhile, energy analyst and Princy Mthombeni, South Africans for Constitutional Reform (SACR) co-founder and chairperson, said while she advocates for public participation in such matters, it is important to also understand that those litigating in the name of communities do not necessarily mean they are for the community.
Mthombeni said she has heard Eastern Cape residents who have expressed concern over the economic implication of the judgment by the apex court on Friday. She said communities should be fully involved in decision-making and should avoid the “development versus environment debate”.
She emphasised that there was no need for the debate considering that exploration is only to confirm if resources do exist and that the country rather needs to drive investment while having a policy in place that protects both the environment and development.
“My concern is the broader impact on regulatory certainty and energy security. South Africa remains heavily dependent on imported hydrocarbons. We imported about 3.3-billion litres of crude oil in Q3 (third quarter) 2025, while refined petroleum imports were worth approximately R226-billion in 2025. At the same time, unemployment is 32.7% nationally and 44.6% in the Eastern Cape.
“We therefore need to ask whether there are ways to address deficiencies in consultation and environmental safeguards without automatically losing an entire development opportunity,” said Mthombeni.
- The Constitutional Court blocked offshore oil and gas exploration by Shell and Impact Africa along South Africa's Wild Coast, citing inadequate consultation and environmental concerns.
- Portfolio Committee chair Mikateko Mahlaule expressed respect for the court but warned the ruling could cause uncertainty and deter investment in South Africa's petroleum sector.
- ANC Eastern Cape member Advocate Nkosi Mwelo Nonkonyana praised the ruling as a victory for local communities' rights and called on multinationals to benefit affected communities.
- Energy analyst Princy Mthombeni highlighted South Africa's heavy reliance on imported hydrocarbons and emphasized the need for a balance between environmental protection and economic development.
- The judgment sparked debate between environmental activists opposing exploration due to ecological risks and industry advocates who see exploration as key to energy security and economic growth.
