All You Need To Know About Zambia’s Oil Marketing Industry - Insights From Mr. Gomeli Litana

Summary
Zambia’s oil marketing industry offers significant opportunities but demands discipline, resilience, and strategic thinking. Industry expert Mr. Gomeli Litana highlights the sector’s low margins, strict regulatory requirements, and the importance of achieving high sales volumes to succeed. He encourages entrepreneurs to look beyond fuel trading by exploring upstream and downstream opportunities such as refining and distribution. Mr. Litana also emphasizes the need for government support to strengthen local oil marketing companies and proposes a restructured, locally managed Indeni model. With the right vision and policy backing, Zambia’s petroleum industry has the potential to drive meaningful economic growth.

According to industry expert Mr. Gomeli Litana, the petroleum industry in Zambia presents a complex yet promising landscape for entrepreneurs and investors. In this issue of Excel Magazine, Mr. Litana shares valuable insights on navigating what he describes as a challenging yet rewarding sector.

Setting up an oil marketing business in Zambia is no easy feat. Mr. Litana explains that the requirements are stringent, and establishing a strong market footprint can be daunting for new entrants. To overcome this challenge, he advises that acquiring an existing reputable Oil Marketing Company (OMC) can be a strategic move, offering a shortcut to gaining credibility and getting ahead in the industry.

With margins in the petroleum sector being extremely low, success largely depends on achieving high sales volumes while maintaining strict discipline on expenditure. As Mr. Litana notes, “this is one of the businesses that really tests your discipline.”

Although fuel demand remains constant and guarantees a steady market, Mr. Litana encourages Zambian entrepreneurs to think beyond mere fuel trading. He advises exploring upstream and downstream opportunities, such as refining and distribution networks, to position businesses for long-term sustainability and growth.

Mr. Litana also highlights the critical role of government in supporting local oil marketing companies. He calls on the Government of the Republic of Zambia (GRZ) to implement supportive policies, including the use of the strategic reserve fund to provide low-interest loans that would enhance the financial capacity of indigenous OMCs.

Looking ahead, Mr. Litana proposes a reconsideration of the Indeni Refinery model. He suggests that the facility could be managed by Zambians under a Public–Private Partnership (PPP) or lease arrangement, leveraging the existing pipeline to produce low-sulfur diesel, petrol, and other petroleum products.

In conclusion, the petroleum industry in Zambia demands resilience, discipline, and vision. With the right approach and institutional support, it has the potential to be a game-changer for local entrepreneurs and the national economy. As Mr. Litana advises, “stay humble, stay focused, and dream big”—the future of Zambia’s oil marketing industry looks promising.