Secretary to the Treasury Felix Nkulukusa has expressed regret over the transition of Indeni Energy Limited from an oil refinery company to an oil marketing company. He stated that if it were possible to reverse time, such a move would not have been permitted.
Appearing before the Committee on Parastatal Bodies on Tuesday, Nkulukusa noted that fuel trading requires substantial resources, which the government cannot fully provide for Indeni.
“Obviously, our feeling from the Treasury, or my personal view, is that Indeni should be repurposed; they cannot manage fuel trading. Fuel requires enormous resources, not only for purchasing the fuel itself but also for investment in human capital and technology,” he said.
He added that the company’s operational model is not suited to compete effectively in fuel marketing, where significant capital is needed to procure, store, and distribute petroleum products.
“Government cannot raise sufficient capital for Indeni to engage in fuel trading at a competitive level. This puts the company at a disadvantage and limits its ability to operate sustainably,” Nkulukusa explained.
The Treasury Secretary suggested that Indeni should instead focus on areas aligned with its original mandate or explore partnerships that could strengthen its capacity. He also called for a comprehensive review of the company’s strategy to ensure it delivers value to the nation.
Members of the Committee on Parastatal Bodies acknowledged the challenges highlighted and committed to working with relevant stakeholders to determine the best path forward for Indeni Energy Limited.
There are too many regrets under UPND. Economy is a regret. Governance is a regret. 2021 is a regret. So it is not only Indeni descision which is a regret
How is Indeni positioned with the Lobito Zambia pipeline? Has it been completely sidelined?