Published by the government of Zimbabwe
Fanuel Kangondo
9 November 2009
Harare — A high-powered delegation from South Africa is today expected in Zimbabwe to meet Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere over proposals to dispose of BP and Shell's assets in the country.
The visit comes in the wake of reports that the firm's proposal to sell the assets to KenolKobil and Engen Petroleum has been turned down by the Government after it was found that the proposal was not compliant with the country's indigenisation laws.
Under the existing Indigenisation and Economic Empowerment Act, the disposal of any concern should constitute 51 percent local component, and this appeared not to be so in the deal.
Herald Business understands that the chairman of BP Southern Africa, Advocate Rams Ramashia, the chief executive of BP Africa Sipho Maseko and Rahid Yusuf the CEO of Engen Petroleum in Africa are scheduled to meet Minister Kasukuwere this morning.
Although efforts to get details of what will be discussed were unsuccessfully, it is reliably understood that the oil company was coming up with new proposals on the way forward.
Several indigenous oil companies and existing employees of BP and Shell in Zimbabwe have expressed their opposition to the KenolKobil and Engen transaction which would have seen the company go into the hands of foreigners. BP and shell runs a network of 75 service stations and bulk storage facilities including a Harare blending plant with a capacity of 30 million litres of fuel per year.
Minister Kasukuwere was not available for comment, but officials in his ministry said they had been overwhelmed with requests from various stakeholders who wanted to be afforded an opportunity to participate in the sale of the BP and Shell shares in Zimbabwe.
They said they were waiting anxiously to see what the new proposal would bring to the table as a restive petroleum sub-sector awaits to see the off spins of the country's indigenisation laws.
While some sections in the economy have raised concern over the stance taken by the ministry as an affront to the country's investment thrust, others have taken it as a test case of the interpretation of the prevailing legislation.
While inflows of investment were welcome, they have said, these should be in compliance with the laws of the land.
Calls to the acting general manager of BP and Shell in Zimbabwe Mr Rodrick Kusano went unanswered as it emerged that he was part of a management proposal to buy the shares on offer.
Herald Business understands that some local oil companies had sought legal advice regarding the KenolKobil and Engen transaction basing their argument on the fact that they were never given an opportunity to participate in the disposal of the BP and Shell shares.
They had also enlisted the support and protection of Minister Kasukuwere to ensure that their interests were also considered.
There are more than 60 registered oil companies in Zimbabwe and none of them were ever approached regarding the disposal of the BP and Shell shares.
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