23 May 2017

The existence of state enterprise Botswana Oil has helped the country avert fuel shortages and also presents citizen entrepreneurs with abundant opportunities.

In an interview with BOPA, Botswana Oil Chief Executive Officer (CEO), Mr Willie Mokgatlhe said his company offers local business prospects to participate in the fuel industry, while also ensuring that the country always has fuel reserves.

“Botswana Oil was registered in 2011, started operating in 2013 and by 2014 we had a full complement of staff. Since we import oil and manage the government’s strategic stocks, we ensure that the country always has reserves of fuel. We also offer Batswana entrepreneurs opportunities to participate in the industry,” Mr Mokgatlhe said.

Mr Merapelo Tautona, a Principal Energy Officer in the Ministry of Mineral Resources, Green Technology and Energy Security added that the government had founded Botswana Oil, a state enterprise that operates under the Companies Act for various strategic reasons.

“Botswana Oil was founded by the government for various reasons, firstly to ensure the security of supply of petroleum products; the management of the government’s strategic resources of fuel, as well as to create meaningful citizen participation in the petroleum industry,” Mr Tautona said.

He added that over the years, the government had sought to promote citizen participation in the sector, citing the example of petrol filling stations being reserved for citizen entrepreneurs. Mr Mokgatlhe on the other hand said that Botswana Oil is tasked with the importation of petroleum products they have managed to keep the country from experiencing fuel shortage.

“The state had come to the realization that petroleum is a strategic resource that cannot be left purely to the multinational companies. We ensure that at any point the country has fuel reserves that can be tapped upon,” Mr Mokgatlhe said.

He added that they are exploring ways through which Botswana can develop petroleum products domestically.

“We have engaged a consultant to explore the feasibility of coal to liquid development of petroleum products within the country. Exploration is also taking place countrywide to explore other potential sources of fuel. Currently we have an abundance of coal and gas reserves that are being explored to potentially boost a domestic fuel industry,” Mr Mokgatlhe said.

Furthermore, he said that they sell some of the space they have in their storage facilities to citizen entrepreneurs involved in the industry, stating that this is just one of the means through which they plan to involve domestic business.

“We want Batswana to have companies that provide the mines, government departments and other stakeholders with petroleum products. There is so much room for this industry to develop in this country and we are interested in getting citizen entrepreneurs to participate meaningfully,” Mr Mokgatlhe said.

For his part Mr Tautona said the government is exploring legislative aspects to govern the industry in the future. This is in line with the government’s pledge to ensure a better life for its citizens. ENDS