Namcor wants to dominate fuel market
22 November 2019 | Energy
Laying out Namcor's goals, CEO Immanuel Mulunga said it was common practice worldwide for national oil companies to dominate their own domestic markets.
“We have a mandate to play a role in the downstream sector. Although the downstream sector is highly regulated, we believe there is more scope for better margins in the retail sector. What is the point of having a national oil company if you only have a market share of 3%?” he said.
“We have made a conscious decision to compete in this market and the entire petroleum value chain that we can,” he said.
Mulunga said Namcor would emulate the example of other national oil companies like Malaysian oil company Petronas, which owns the Engen brand that operates in the southern African market.
“This is the trend worldwide where national oil companies start off and end up dominating their own markets and even go abroad to other markets. There is no reason why Namcor should not do the same,” he said.
The Hosea Kutako filling station would be followed by others at Oshakati, Karasburg, Opuwo, Swakopmund and Rundu, Mulunga said.
“It is really, I would call it shameful, if we continue playing the role that we have been playing in the last 28 years where we have effectively been punching below our weight.
“The Hosea Kutako International Airport retail site is one of many retail sites that we are going to roll out in the next 12 to 18 months.
“This is one of three retail sites that we have started. The second one is at Ongwediva that has started trading; the third one is at Otavi which is nearing completion,” he said.
“We need the country's support because this is our own brand, our own retail site,” he said.