Importing fuel from Angola is a long-term plan – Bowa

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REYNOLDS Bowa says there are other processes which have to happen, before Zambia can start to import crude oil from Angola.
 
When he featured on ZNBC TV’s Sunday Interview programme, Bowa, the Board chairperson of the Energy Regulation (ERB) was asked why Zambia does not import fuel from Angola.
 
In response, Bowa explained that what is publicised is that Angola has discovered oil.
 
“They do have oil and they are producing oil. They have a refinery, but the capacity of their refinery is relatively small. It doesn’t even cater to their own national consumption,” Bowa said.
 
“So, by and large, Angola exports crude and imports refined products. Now, to the extent that they have the crude oil to export, one would expect that the proceeds from that crude oil are used to cushion their own citizens against a very high price of the refined product that they import.”
 
He said it would be very unfair, and that he does not even think that it will happen, for Zambia to go and buy the subsidised refined fuel that that country supplies to its citizens.
 
“It’s tantamount to Angola subsidising Zambia. It doesn’t happen,” he said.
 
“But in a wider context, what is happening is that there are plans in Angola to build a much larger refinery and that much larger refinery will be targeted towards meeting regional consumption, rather than the Angolan consumption alone.”
 
Bowa noted that as a business enterprise, the Angolans are looking to other countries who stand to benefit from a large refinery to invest in that with them.
 
“The Zambian government is engaging in that regard. We are also engaging in regard to the possibility of building a pipeline from Angola into Zambia, which will bring us refined products from that refinery into Zambia, much cheaper,” said Bowa.
 
“A pipeline would allow Zambia to possibly become a distribution hub for the region because being central, it means all of the other countries need not go directly to Angola to access the product; they can access it from us. But these are long-term projections.”
 
Kalemba February 6, 2023
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