Import mandate catapaults Botswana Oil to over P13bn annual revenue
Botswana Oil Limited, the state- owned petroleum bulk trader, is poised to become one of the largest revenue- generating companies in Botswana following its new role as the country’s primary importer of petroleum products.
E ective April 1, 2024, the national oil company assumed its expanded mandate, responsible for importing 90percent of Botswana’s fuel requirements.
Established just over a decade ago and wholly owned by the Government of Botswana through the Ministry of Minerals and Energy ( MME), BOL was tasked with ensuring the security and e ciency of petroleum product supply and distribution within the country.
Currently generating approximately P3 billion in revenue, BOL’s fortunes are expected to soar as it handles larger volumes of the nation’s petroleum requirements, with projected annual revenue surpassing P13 billion. Botswana imports around P14 billion worth of fuel monthly. In 2021, the country imported $ 1.31 billion in Rened Petroleum, primarily from South Africa ($ 1.03 billion), Namibia ($ 247 million), Mozambique ($ 30.6 million), Qatar ($ 4.34 million), and Estonia ($ 693,000). With this development, Botswana Oil will join the ranks of local companies generating over P10 billion in revenue annually. Until now, this territory was predominantly occupied by diamond companies such as Debswana, a partially state- owned entity operating the world’s largest diamond mines, and De Beers Global Sightholders, which aggregates and sells elite rough diamonds in Gaborone. The latest addition to the deca- billion pula revenue bracket is Okavango Diamond Company ( ODC), the state- owned diamond marketer currently handling 25 percent of Debswana’s run- of- mine production. ODC surpassed the P10 billion revenue mark when its allocation increased from 15percent to 25percent in 2021 during negotiations for a new sales agreement between Botswana and De Beers.
The prolonged negotiations triggered an existing clause stipulating an increase in Botswana’s allocation should the existing agreement expire before a new deal was reached. ODC is poised for substantial growth in revenue over the next decade as the 100 percent state owned diamond marketer assumes a larger role in handling Debswana’s run- o mine production, as outlined in the new deal signed on June 30th of 2023. e nalization of this agreement is set for end of July this year. In addition to Botswana Oil’s ascent to the top revenue earners, another contender likely to enter the premier league of billion- pula revenues is Sefalana Holdings. e Botswana Stock Exchange- listed retailer surpassed P9 billion in revenue last year, solidifying its position as the largest FMCG trader in Botswana.