Even as government proceeds to shut down Indeni and pivots towards importing of finished petroleum products via road transporters, the situation on the ground is indicating that this sector will also join other sectors that have been handed over to foreign entities and increase the amount of forex going out of the economy.
The Petroleum Transporters Association of Zambia (PTAZ) has revealed to the Zambian Business Times – ZBT that some government contracted suppliers and Oil Marketing Companies (OMCs) such as Puma energy, Vivo energy (operating as Engen) and Mount Meru Petroleum who are importing huge volumes of fuel have sidelined Zambian citizens in the transportation sector.
PTAZ General Secretary Benson Tembo said the suppliers have also ignored the provisions of the law, which states that preference must be given to Zambian citizens and that atleast 50% of all imported fuel must be transported by Zambian citizen owned Transport companies.
Tembo said the suppliers contracted by government have instead given priority and preference to foreigners who are registered in Zambia and foreign companies from Tanzania, Zimbabwe and Mozambique. He said currently, a lot of Zambian trucks are packed waiting for business meanwhile fuel is being supplied and transported by foreigners.
Speaking in an interview with ZBT, Tembo said Zambian transporters have been left as spectators who are just watching foreigners thriving in areas where government has prescribed volumes for citizens.
“We didn’t start transporting fuel today; we started transporting fuel a long time ago. On the importation, we are the ones who opened the eyes of most of the citizens who didn’t know that there is money in the transportation of fuel in 2016 and over time, most of the transporters who have come have benefitted from what we were preaching”, he said.
He said it is unfortunate that local transporters are failing to meet their monthly obligations at banks and other places where they borrowed money because business was taken away from them.
Tembo noted that the law that protects the interest of Zambians is in place as the Patriotic Front (PF) government through the President signed Statutory Instrument (SI) No 35 of 2021, which is known as “Transportation of Bulk and Heavy Goods by Road” adding that the law states that Zambian citizen owned companies must be given the first right of refusal to the effect that 50% of all imported fuel must be transported by Zambians.
The law is there but full implementation of that law is lacking,Tembo said. He mentioned that President Hakainde Hichilema has on many occasions talked about giving preference to Zambians and has encouraged joint ventures but that is not happening, a situation which has been there for a long time.
Tembo added that citizens opted for change because of the way things were been done and the transporters waited for 10 years to have the regulation which they pushed for in place in order to see full implementation and enforcement of that law but nothing has changed.
He explained that mines, which are one of the biggest consumers of fuel have also opted to use foreigners in the transportation of copper,acid and sulphur thereby depriving many Zambians of participating in the transport sector and retaining most of the foreign exchange.
“If I go to Tanzania, I cannot do the business which the Tanzanians are doing. In the case of copper transportation, they are coming to Zambia, they would have made their money, they have an option of going back to Tanzania empty but what do they do, they come to Zambia and give them a low rate which a Zambian cannot do”, he said.
Tembo explained that it is unfortunate that mines have also opted to use foreigners in the transportation business despite understanding the provisions of Mines and Minerals Development Act No 11 of 2015 which states that all services to the mines must be given to Zambian citizens.
“When a Zambian goes to the mines and says this is my rate, they say no you are too expensive we will go for this Tanzanian because for him, that rate he has given the mine is only to cover for the cost of fuel, the driver and other payments. His money is already made on the initial trip that he made to Zambia. Once a Zambian gives a lower rate and goes to Tanzania what is he going to load from there, there is nothing to load because there is nothing for him, just like Zimbabwe”, he said.
Tembo said the cost of doing business in Zambia is very expensive because of the cost of fuel, spare parts, repairs, toll gates as well as licensing which is high and the statutory instrument that is now in place for drivers’ salaries is very restrictive therefore Zambian transporters are choked.
“Then you take away the business from them, the next thing you see is Zambian transporters closing, is that the desire of government when it is preaching about creating jobs. We have tried to create thousands of jobs in the transport sector which are now on the line because the transporters are defaulting in these banks and they are also defaulting from all the people who helped them get the trucks, they are failing to pay”, he said.
He mentioned that mines ask for incentives from government and when given those incentives they turn around and start depriving Zambians of the much needed revenue from the mine activities.
“Government has until 2026 to show that they can do better than what has been happening all these years”, he said. Tembo said the minister gave a directive that by 15th November there should be full compliance but until now, nothing has happened and no one is listening to government directives.
“We are dealing with very rich organisations and companies that are well to do so they can maneuver in all these government offices and do the necessities to blindfold the people who are supposed to enforce the law. We feel this is what is happening because Zambian citizens don’t have money to go and bribe anybody, the only thing they are waiting to see is the implementation of the law”, he said.
Tembo said he wants to see a situation where the association praises the government every time it speaks to the media but there is no reason to do that as they are not doing anything. “The question is for how long are we going to cry and complain”, he said.
