THE National Petroleum Corporation of Namibia (Namcor) has partnered with several companies to build fuel service stations across the country, an arrangement that includes politically connected individuals.
Namcor has so far entered into partnerships with more than 10 companies as part of the parastatal’s plan to build 33 service stations by 2024.
Towns with service station partnerships include Windhoek, Ongwediva, Mariental, Outapi, Karasburg, Khorixas, Oshakati, Otjiwarongo and Otavi.
So far, beneficiaries include former Namibia University of Science and Technology vice chancellor Tjama Tjivikua, businessman Peter ‘Kanu’ Amadhila, former footballer-turned-oil dealer Dan-Boy Njadila, and Roads Authority senior engineer Lazarus Kunugab.
Other partners include businessman Ashipala Uushona, Arno Diberti, businessman Vinod Kumar, and Craig Thompson.
Namcor, however, faces criticism over how it picked its partners.
The company admits it has advertised tenders for two service stations only, while it was approached by its other partners.
Some sources have raised questions over the execution of this scheme, including concerns that the parastatal has picked some inexperienced companies.
Namcor managing director Immanuel Mulunga in April insisted there was nothing sinister about the agreements.
“Dealer recruiting and selection processes within Namcor are transparent, and we follow the same procedures used by world-class organisations. In instances where Namcor owns the land and the facility, we publicly advertise dealer opportunities,” he said.
Individual service stations allegedly cost anything between N$6 million to more than N$30 million to set up.
The state-owned entity says it plans to invest N$100 million to reach a target of establishing 18 service stations in the current financial year.
According to some of the deals, Namcor pays the site’s rent, while the partner pays the rent of the structure put up by the parastatal.
Other deals involve that Namcor puts up the structure and supplies accessories, such as fridges.
The partner is, however, still expected to fund stock and other expences Namcor would not cover.
THE PLAYERS
Educator-cum-businessman Tjivikua’s Waterberg Service Station, located between Khomasdal and Otjomuise is projected to be the biggest revenue generator, with an estimated investment of around N$27 million.
Tjivikua did not respond to questions sent to him.
On his Facebook page he posted an aerial view of the service station with the caption: “New venture, new experience … come one, come all.”
Namcor’s partner at Ongwediva is Arno Diberti. Together, they own Hanover Service Station.
Diberti says the partnership has not turned out the way he wished it would.
“I don’t think I am upsetting anyone by saying this, but I just feel they [Namcor] lack experience, technical know-how, support and expertise in the retail sector,” he says.
Diberti says: “This is not what I was hoping for. There are challenges, but we will sort them out.”
Diberti, who has about 15 years’ experience in the retail sector, says he is currently involved at several service stations with four oil companies.
“I didn’t use connections at all. I own the land, and I could have entered into partnerships with other companies,” he says.
Diberti says his deal with Namcor has provided a blueprint for others to succeed.
“The Ongwediva service station was one of the first, and you could say we are the guinea pigs as we struggled and others have learnt from us.”
Namcor has partnered with Ashipala Uushona at Mariental on Dynamic Mariental Service Station.
It became operational last month.
Uushona says his company invested in the project before Namcor approached them.
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