President Emmerson Mnangagwa’s advisor Chris Mutsvangwa has said that he is fighting a monopoly in the fuel industry because it is benefitting only one person. Mutsvangwa and some of President Emmerson Mnangagwa’s allies are reported to be planning to construct a second fuel pipeline from Beira and have lined up a deal with South African fuel giant Mining, Oil and Gas Service (MOGS) to build the pipeline. MOGS has promised to supply Zimbabwe with six months of fuel and to provide the government with foreign currency as part of the deal. Speaking to The Standard, Mutsvangwa said,
Since 2015, I have been fighting against the monopoly in the fuel industry. We can’t have one person eating for everyone and crafting artificial fuel shortages. I don’t have respect for such businesspeople who rely on allocation of foreign currency from the Reserve Bank.
However, Sakunda Holdings boss Kudakwashe Tagwirei is reported to be resisting the construction of the second pipeline arguing that he has invested a lot of money in the Beira-Feruka oil pipeline. A source who spoke to The Standard said,
Tagwirei does not want MOGS in the market because he has invested a lot in the Feruka-Msasa pipeline after having made an advance payment of $120 million to refurbish the pipeline in 2014. He also parted with huge sums of money to construct the Mabvuku fuel gantry under a public/private partnership. He put in more than $11 million into that project and he now feels his investment would go to waste if MOGS comes into the market.
More: The Standard
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