03 Apr 2024

The Botswana Energy Regulatory Authority (BERA) on Tuesday issued the Botswana Oil Limited (BOL) a licence for the importation and exportation of petroleum products. 

The move follows an amendment of the regulatory authority’s Act that led to a 90% import quota being offered to the government-owned company, which has been hailed as vital in pursuit of energy security. Speaking at the event, BERA caretaker Chief Executive Officer, Dr Grace Tabengwa, said the authority has been working to develop several critical instruments for better regulation of the energy sector in Botswana. 

“These instruments include bulk import and export of petroleum products, development, operation and decommissioning of petroleum infrastructure, transportation of petroleum products as well as manufacturing of petroleum products,” she said. 

Dr Tabengwa said the issuing of the licence now meant that BOL would start to import and supply petroleum products into the country. 

“The Act imposes restrictions on the importation of petroleum products to other regulated entities, except for majority citizen companies,” she said. “So all petroleum products import licences previously issued by the authority became defunct on March 31.”

Dr Tabengwa said however that companies will be allowed to re-apply for import licences under the new dispensation and that for the sake of security of supply and promotion of citizen participation, some majority citizen owned companies that have been actively importing will continue to do so for a period of six months from April 1. 

She said the licence, which entered into force on April 1, also compelled BOL to among others, plan, maintain, refurbish, install and develop the facilities and equipment necessary for the safe carrying out of the licensed activities. 

Mr Meshack Tshekedi, the chief executive officer of BOL, said the licence was a major milestone for BOL and the nation at large and was a culmination of efforts started years back. 

“We have benchmarked on the best practices from other countries in readiness of the import license and we assure you that we are ready for this important milestone,” he said. 

Mr Tshekedi said this was more so that as BOL, they were aware that the security of supply strategy for the country was anchored on the country taking ownership of its own destiny. 

He said this called for first consolidating imported volumes to enable control before securing long-term contracts with suppliers to ensure sustainability of supply. 

Mr Tshekedi said that assurance in security of supply was vital in the wake of lessons brought about by the COVID-19 pandemic. 

He said the other strategy to ensure security of supply was to develop routes from Namibia and Mozambique as alternatives from transporting fuel through South Africa. 

He said that another strategy required to ensure security of supply was to develop adequate storage facilities in the advent of fuel shortages and crises. 

“This will enable continuation of supply to the market and ensure that our economy continues operating,” he said. 

He said BOL would continue to work with citizen and international companies and all other stakeholders to move the industry forward. 

Mr Tshekedi also gave an assurance that BOL would ensure that the country has fuel at all times, which he said was a major energy driver in the country. Ends