Rutendo Nyeve [email protected]
THE Mutapa Investment Fund (MIF) has revealed ambitious plans to expand fuel storage facilities in Bulawayo and open a dedicated channel from Matola in Mozambique to the city, a move expected to transform
Bulawayo into a key enabler of regional fuel trade and restore its status as an industrial hub.
The plans, unveiled by MIF Deputy Chief Investment Officer Mr Ernest Denhere in Victoria Falls recently, will be implemented through the National Oil Infrastructure Company (NOIC) and the National Railways of Zimbabwe (NRZ).
This comes as MIF has mobilised US$20 million in capital for the second phase of the pipeline upgrade, which will increase capacity from three billion litres per year to five billion litres per year.
Land has also been granted in Beira to build a new tank farm, a development that will significantly boost Zimbabwe’s energy security.
Mr Denhere said the fund is looking beyond domestic demand.
“Last year, if I recall correctly, we sold or the throughput on the pipeline was 2.7 billion litres. Out of the 2.7 billion litres, 2.2 billion was local in Zimbabwe and 500 thousand was exported,” he said.
“So, I don’t think we can grow our own demand to five billion. So, this means we need a market for the other two billion litres. For us that means talking about earning competitiveness through solving terminal issues at Beira so that we land the product competitively into DRC and Zambia.
“We’re also looking at NOIC in terms of increasing storage presence in the country. We’re looking into the railway with NRZ and their storage capacity to expand it and this will see us opening another channel from
Matola into Bulawayo as another route. So, currently, I am pleased to report that there is an ongoing pilot with a trader and it has been successful in the first month, where they would then invest in dedicated rail to move their own stocks from Matola into Bulawayo. This is why we need to expand the Bulawayo storage facility,” said Mr Denhere.
The MIF deputy CIO said NOIC has been running self-funded initiatives, but the fund now wants to push the company further midstream.
“At NOIC, we have been doing a lot of self-funded initiatives with NOIC, but we’re looking into getting them further midstream. We are looking into port and terminal investments through your ministry,” he said.
“We have been granted land in Beira and we’re working on trying to model out a new tank farm, which would probably give us more energy security as a country. The next development that we are going to be pursuing with NOIC is obviously, there is an existing upgrade project, which I think everyone is aware of, moving from three billion litres to five billion litres,” he said.
Mr Denhere emphasised that the upgrade is not only about volume but connectivity.
“But more importantly, it is how we can connect ourselves with other markets, be it in Zambia or into Botswana. And I think we have done a bit of concept work on that. But once we have upgraded it to five billion litres, the task for NOIC is that we need external markets,” he said.
Bulawayo, once the country’s industrial powerhouse, has suffered from deindustrialisation and rail decline.
The proposed dedicated Matola-Bulawayo channel and expanded storage capacity could revive the city’s logistics sector, create jobs and lower fuel costs for industry.
The pilot with a private trader, which reportedly succeeded in its first month, signals private sector appetite for the route.
The plan also aligns with Zimbabwe’s broader push to become a regional energy transit hub.
By solving terminal bottlenecks at Beira and using Bulawayo as an inland distribution centre, MIF hopes to capture fuel trade into Zambia, DRC and Botswana.
The new Beira tank farm would give the country more leverage and security in fuel procurement.
In that regard, Mr Denhere said MIF is working with relevant ministries, NOIC and NRZ to bank the projects.
The initiative could restore Bulawayo’s rail and storage infrastructure, turning the city into a key enabler of fuel regional trade and a renewed industrial hub.
