03 Oct 2024

Botswana Oil Limited has transformed its business operations from years of making losses to impressive financial and overall business performance with a declaration of their first dividend of P10 million to government.

Minister of Minerals and Energy, Mr Lefoko Moagi revealed this during the company’s launch of the 90 per cent import mandate in Gaborone yesterday.

He said the ministry was proud that the company was already generating profits that could be reinvested into infrastructure development and reduce reliance on funding from the government.

He said the company grew its revenue to P2.6 billion, with volumes rising to 187 million litres supplied and a profit of P99 million for the year 2022/2023.

Minister Moagi stated that for the financial year ended March 2024, Botswana Oil Limited closed with P3 083 billion in revenue and a profit of P69 million, adding that the reduction in profit was attributed to supply disruptions during the year and further investments in mobilising resources for the implementation of the 90 per cent import mandate.

“With the implementation of the 90 per cent import mandate in the current financial year, we anticipate that in the near future Botswana Oil Limited will grow its revenues to approximately P15 billion with profits ranging between P400 million and P500 million,” he said.

He said the ministry therefore expected dividends to be declared to the government in future to be much more than the P10 million declared.

The minister  expressed confidence that Botswana Oil Limited was growing to become one of the biggest contributors to Botswana’s Gross Domestic Product (GDP) in the next five years.

He said the ministry was also proud that in 2022, Botswana Oil Limited and the Debswana mining company collaborated on a landmark Citizen Economic Empowerment Programme (CEEP) partnership.

Such partnership, he said had facilitated four citizen transporters to deliver petroleum products worth P8 billion to Jwaneng, Orapa, Letlhakane and Damtshaa mines over a period of five years.

He said it was commendable that Botswana Oil Limited spent more than P345 million on citizen companies contracted for the transportation of petroleum products over the past three years.

“During the current financial year of 2024/2025, Botswana Oil has so far spent close to P100 million and expected to spend P300 million by end of the year, having supported up to 16 citizen transporters with a fleet of 115 trucks,” he said.

He said the ministry envisioned an increase in truck ownership locally in the next 12 to 24 months as Botswana Oil was in the process of engaging more citizen transporters on long term contracts so that they could increase their capacity.

The increase in the number of trucks, he said, had a multiplier effect in the creation of employment for drivers, maintenance services, truck staging facilities and other activities related to the transportation of petroleum products. ENDS