• Zambia grants 43 energy licenses to boost petroleum distribution

• Adds fuel tankers, service stations, and repurposes TAZAMA pipeline

• Aims to localize transport, stabilize supply, and cut import reliance

Zambia is moving to tighten control over its petroleum supply chain amid ongoing energy challenges. Last week, the Energy Regulation Board (ERB) announced it issued 43 licenses and six construction permits in the energy sector.

While some approvals concern solar projects, the bulk of the focus is on petroleum. The ERB granted several accreditations to companies for the operation or circulation of more than 85 fuel tankers. Additional licenses cover the opening of six new service stations.

According to a commercial directory tracking fuel stations nationwide, Zambia had 439 stations as of the end of April 2025. In January, local media, citing ERB CEO Elijah Sichone, reported a shortage of petrol at over 100 stations in Lusaka and other cities.

The strain on the fuel distribution network is evident. A report by the Policy Monitoring and Research Centre (PMRC), a public think tank based in Lusaka, notes that recent supply disruptions stem less from product shortages and more from weak internal logistics.

In response, the Zambian government is overhauling its petroleum supply chain through a series of reforms. These include the October 2024 conversion of the Tanzania–Zambia Mafuta (TAZAMA) pipeline, from the port of Dar es Salaam to the Indeni refinery, for diesel transport.

The government has also repurposed the Indeni refinery into a storage depot and is promoting the growth of a national network of local fuel transporters. The ERB now mandates that at least 50% of fuel transportation be handled by Zambian companies.

By adding new tankers and retail outlets, authorities aim to ease distribution, particularly in rural areas, stabilize pump prices, and reduce reliance on foreign intermediaries in critical segments of the chain. The strategy also aligns with a broader push for import substitution, including the growing use of liquefied petroleum gas (LPG) as a domestic fuel source.

It remains too early to assess the full impact of these reforms. Their effects on transport costs, local employment, and supply security will likely take time to materialize.

This article was written in French by Abdel-Latif Boureima

Edited in English by Mouka Mezonlin