Botswana Oil empowers citizen oil companies
Botswana Oil Limited continues to facilitate for local companies to enter and participate in the cut- throat petroleum sector which is controlled by foreign firms.
The company was set up by government to among others ensure the security and efficiency of the supply and distribution of petroleum products such as diesel, petrol and paraffin within the country.
In a response to Botswana Guardian questions, the parastatal’s Chief Executive Officer, Meshack Tshekedi said they have developed a citizen companies facilitation framework that is underpinned by four pillars of Preferential Procurement, Capacity Building, Supplier Development and Enterprise Development.
One of the ways in which the organisation has helped locals to have a smooth sail in the sector is by working with Botswana Railways ‘ to resolve some of the challenges impeding use of rail, resulting in BOL becoming the biggest consumer of bulk fuel rail services’.
Tshekedi, who was appointed to the plum post last year said they have also worked with financial institutions and institutional customers to resolve the working capital challenges for citizen companies, including entering into cession agreements to guarantee supply to customers of citizen companies like councils and parastatals.
Most local businesses who want to venture into the lucrative petroleum sector have been pushed back by the inherently high entry costs. Capacity and technical skills have also been some of the major weaknesses which made it difficult for domestic companies to enter the petroleum sector.
Thankfully, Botswana Oil has found it fitting to organise a number of workshops to up- skill them.
Tshekedi said they continue to conduct targeted oil industry capacity building trainings to citizen companies and other public institutions that consume fuel in bulk.
The trainings include oil industry fundamentals, petroleum pricing, bulk fuel transport and logistics, Health, Safety, Security and Environment. Eleven such engagements were held in the past year alone. Transportation remains an integral part of the oil business, and most locals do not have the necessary connection to take petroleum from source to consumer. This scenario is compounded by the fact that the country imports most of its petroleum supply from South Africa.
According to Tshekedi, Botswana Oil has also worked with suppliers in South Africa to cause accreditation of local and citizen transporters to enable them to load out of their facilities.
“Following extensive consultation with the South African suppliers, training sessions were held to equip local transporters with the technical capability to meet requirements of loading depot in South Africa. “This was followed by an Expression of Interest that BOL floated, inviting interested local transporters to put forward their intention to take advantage of the opportunity to be registered. “The initiative culminated in at least two citizen companies registering with the said suppliers after meeting the set requirements”, Tshekedi told Botswana Guardian. In addition, Botswana Oil has also offered its storage and rental support to citizen companies to enable them to compete for tenders in the commercial space. Botswana Stock Exchange listed Engen Limited, Total, Shell and Puma are some of the major players in the local petroleum sector.
Following extensive consultation with the South African suppliers, training sessions were held to equip local transporters with the technical capability to meet requirements of loading depot in South Africa.