To leverage its downstream supply chain activity, Pamodzi Group announced that it has acquired a 60% stake of Siyanda Petroleum.
Pamodzi’s strategy is to invest in growth sectors to grow its portfolio and partner with credible delivery partners and institutions to realise our vision.
Siyanda Petroleum is an oil and gas distribution company that markets and sells diesel, petrol, jet fuel, liquid petroleum gas (LPG) and lubricants.
The company has wholesale licenses and import permits and has been able to establish long-term arrangements with international oil refineries with shipping, terminal and storage capabilities.
Siyanda Petroleum was established in 2002 and has been operating in the industry for almost two decades and has strong managerial expertise.
Pamodzi Group is a black-led and managed company founded in 1979 and led by entrepreneur Ndaba Ntsele.
Pamodzi’s downstream supply chain activity makes business sense to vertically integrate into Siyanda Petroleum’s operations. This business deal bodes well with Pamodzi’s vision of being a conglomerate with an entrepreneurial flair that benefits all its stakeholders.
The Pamodzi and Siyanda deal puts the company on a scale to compete with major companies in the petroleum industry.
“This is a significant deal which will enable the company to transform and compete in this tough petroleum industry. We are pleased to have secured the business and we believe it is historic and important for black companies to play in this space, hence we took this giant step” said Sihle Mkhize, Executive Director at Pamodzi Group.
The current economic conditions are opportune for this transaction, considering that crude oil prices have been fluctuating between $50 – $60 in Quarter 2 and Quarter 3 as well as the current strengthening of the Rand to the Dollar.