South Africa and Mozambique pre-empt pipeline stake sale

The African neighbours plan greater gas supply cooperation

The Rompco gas pipeline linking Mozambique and South Africa will remain fully owned by state-backed companies, after existing investors pre-empted the sale of an equity stake. South Africa’s Sasol completed a SPA last May for a 30pc equity interest in the Rompco pipeline to “an acquisition vehicle” owned by a consortium of South African energy investment company the Reatile Group and the Ideas Fund, which is managed by African Infrastructure Investment Managers (AIIM). AIIM was formed by South African financial services group Old Mutual and Australia’s Macquarie. But now South Africa’s iGas—a subsidiary of the state-owned Central Energy Fund (CEF)—and Companhia Mocambicana de Gasoduto (CMG)—