ENERGY EXPERT CALLS FOR PROACTIVE STEPS TO CAPITALISE INDENI UNDER NEW BUSINESS MODEL
By Lukundo Nankamba
Energy Expert Johnstone Chikwanda has challenged government to work with various stakeholders to provide working capital for Indeni Oil Refinery to transition smoothly and become functional as an Oil Marketing Company -OMC-.
Mr. Chikwanda says the onus is on shareholders to pump in 100 percent equity and capitalize the company, find a strategic partner who can bring in capital or float shares on the Lusaka Securities Exchange -LUSE- for a venture capital especially that Indeni already had a proven business system with assets that would enable it to raise money.
Government last year announced that Indeni Oil Refinery will be reorganized from the previous operations into an oil marketing company business model to enhance the efficiency of the entity.
But Mr. Chikwanda says while government has placed Indeni under care and maintenance, the Industrial Development Corporation –IDC- which is a major shareholder, must explore various means to raise capital for the business including the option of a Public-Private Partnership -PPP- venture.
He tells Phoenix News that the functioning of Indeni as an Oil Marketing Company requires wider participation as it is a new business model that can revamp the economy and reduce fuel pump prices for Zambia once it begins to function effectively.
PHOENIX NEWS
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