FORMER Indeni Board Chairperson Yamfwa Mukanga says it was not a good decision to transform Indeni Energy Limited into an Oil Marketing Company (OMC), arguing that government should have first explored ways of restoring the company’s profitability.
Mukanga, who also served as Energy Minister, said the decision overlooked critical structural and operational challenges that needed to be addressed before changing the company’s business model.
He warned that reverting Indeni back into a refinery would also come with significant financial and technical challenges, especially if proper feasibility studies are not conducted.
Mukanga explained that before any major transition, government should have undertaken a comprehensive assessment to determine whether the refinery could be viably revived or restructured to operate sustainably.
He added that without a clear roadmap, policy inconsistencies risk undermining investor confidence and long-term planning in the energy sector.
The former minister further noted that decisions surrounding strategic national assets like Indeni require careful consideration, given their impact on fuel security, employment, and the broader economy.
Mukanga has since urged government to adopt a more consultative approach when making key decisions in the energy sector, ensuring that all stakeholders are adequately engaged and that policies are guided by technical and economic realities.
Do they ever listen to advice, these.