Foreign firms plotting takeover of Malawi fuel supply

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There are fears that Malawian companies in the fuel supply sector will be taken out of business as two foreign companies are planning to monopolise the sector.

Mitsui and Gunvor Group are plotting to monopolise Malawi fuel supply through takeover of National Oil Company of Malawi (NOCMA).

Fuel tanks belonging to NOCMA.

According to reports, Japanese trading house Mitsui which is already owner of 50 percent of the controversial CEAR concession with Vale, has initiated a secret agreement with Russian trading house Gunvor.

The agreement will give Gunvor access to all CEAR rail capacity, shutting out all Malawian businesses from use of the rail.

Gunvor, owned by billionaire Tobjörn Törnqvist, already agreed a $500 million deal with Malawi to operate fuel reserves in Mchinji.

Malawi Government will also give Gunvor Group licences for fuel importation, transportation, wholesale and retail fuel trade, production, storage and bulk fuel purchase.

It said that Gunvor will begin to transport fuel into the country from Nacala in Mozambique on behalf of NOCMA.

This means Nacala corridor, which was supposed to be Malawi’s lifeline to the global economy, providing Malawian enterprise with competitive access to imports and exports, will be in the control of the two controversial trading houses.

There are fears that through such a move, the two trading houses would have a chokehold on the fuel supply in Malawi for the foreseeable future.

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One Comment

  1. Penapake anthufe we act as tilibe ubongo. I know kut this is being done for personal benefit. Mukuphatu dzikoli mabwana kumpandako. Ife mu ghetto tikulephera kutukuka coz of ur foolish decisions. Am out.

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