The Private Sector Development Association (PSDA) says it backs government’s decision to sell 49 percent shares of Indeni Oil Refinery in Ndola.

Association Chairperson Yusuf Dodia says the move by government to sell the 49 percent shares in the Oil refinery to a private investor will help stabilize fuel prices in the country.

ZANIS Business reports that Mr. Dodia said this in an exclusive interview in Lusaka, today.

“ The decision was a positive move as it will allow for an opportunity for more capital investment into the company and bring consistency in the operation of the company, “ he said.

Mr. Dodia said the private investor will also boost funding and improve efficiency as company will run as a commercial entity.

The PSDA chairperson said the decision will also create a stable business environment in the oil refinery company which will in turn influence a downward adjustment in fuel prices.

He said Indeni which until 2009 was being run by the private sector had maintained both the flow and pump price of petroleum products in the country despite external factors in the region.

Mr. Dodia also lauded government for the move, adding that the coming in of a private investor will ensure maintenance and reduce government’s operational costs of the company.

Recently, Mines, Energy and Water Development Minister, Christopher Yaluma announced government’s approval of the sale of 49 per cent shares in Indeni Oil Refinery.

Mr. Yaluma said the move would help boost funding and find ways of building a new refinery urgently.
ZANIS

12 COMMENTS

Psyko Mata July 10, 2013 At 9:36 am

These guys have finished the Money so they have to sell anything that crosses their nose…
- Indiana Roti July 29, 2013 At 4:32 pm
  
  and now some SA Indians are trying to lay their hands on it !!! The Indians Mus always thought there are still fats for them ? fat hopes……think Yaluma is nuts ?
ndobo July 10, 2013 At 9:40 am

you take back zamtel and you sell indeni? i dont see were your thinking is
- al July 10, 2013 At 10:20 am
  
  zamtel was fraudulently sold it had corruption written all over it and it will btw have a percentage of its shares together with zesco offloaded onto the stock exchange by 20115
Nawa. M July 10, 2013 At 9:49 am

Very soon we ll see uth sold
Mo taim July 10, 2013 At 9:56 am

I think they should have had left Indeni remain in government`s hands.Some companies are better under full state control coz of how sensitive and important they are to the country`s economy.
Theorist July 10, 2013 At 10:32 am

Let the 49% stake be floated internationally in a transparent manner! We don’t want this to be a single sourced deal! This will be another deal marred with corruption!
Observer July 10, 2013 At 10:51 am

LETS NOT CRITICISE GOVT FOR EVERYTHING, PRIVATISING INDENI WILL ENSURE SPEEDY RECAPITALISATION OF THE PLANT FOR ITS EFFICIENT RUNNING.

WE NEED SOMEBODY WITH MONEY WHO IS ABLE TO MODERNISE THE PLANT AND ONCE THIS IS DONE THE PRICE OF FUEL WILL BE PUSHED DONE. WHO KNOWS WE MIGHT EVEN BE ABLE TO PROCESS ORIGINAL CRUDE. LETS BE PATIENT AND WAIT FOR THE GOVT TO DO THEIR JOB.
Papa July 10, 2013 At 3:09 pm

The 49% shares in Indeni that government wants to sell were owned by Total about three years ago. Total pulled out of Indeni because they were the only ones who were fulfilling the agreement to recapitalise the refinery. They pumped in money but government didn’t fulfil it’s side of the bargain, so they pulled out. The company that will buy these shares will not be a serious investor, because no self-respecting company will want to go into a partnership with GRZ as a majority shareholder. GRZ has proved that it is not a reliable partner.
- Maja the Elephant July 10, 2013 At 3:20 pm
  
  Spot on Papa! Government is NOT selling all of Indeni mwebantu! It will still maintain a 51% controlling interest in the company and hopefully will not be as irresponsible at it has been in the past.
MundiaM July 10, 2013 At 4:19 pm

Zambians are sometimes like sheep being lead to the slaughter house. Once they start condemning they all will without any understanding of what the repercusions of the action they critricise will have.
The Ugandan government has consultants in this country right now consulting on how our refinery has worked for so long and now that its capacity has been outstripped by consumption what is the way forward.
The Zambian government need to offload some shares of INDENI so that they can have some expertise in the operations and management of the refinery.
Currently the refinery is run very unprofessionally and in a costly manner.
Do the Zambian tax payer need to continue paying for expensive fuel? I suppose not.
Tese Zono July 10, 2013 At 5:24 pm

Next government to renationalise like Zamtel ans Zambia railways, what a circus!