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Tinashe Makichi Business Reporter
Fuel retailer, Engen has over the last two years invested about $7 million towards capital expenditure and other expenses aimed at bolstering its retail network. Of that investment, $4 million went towards capital expenditure while additional expenses accounted for another $3 million. That investment has seen the fuel company register a 28 percent growth, increasing operating stations from 20-55 in two years.
Engen managing director Mr Crem Mapfumba told the stakeholders’ breakfast yesterday that the company is playing an elaborate strategy to make itself a brand leader in Zimbabwe as well as demonstrating its confidence in the country’s future by making significant investments.
“We shall continue focusing further on growth, building and harnessing the expertise and full potential of all our people as well as making a significant contribution to the fiscus for the benefit of Zimbabwean people.
“With the international backing of PETRONAS, we are quite optimistic that we will continue to grow to become a powerhouse on the local market,” said Mr Mapfumba.
Engen expects to increase operating stations to 80 by end of 2015 and is planning to grow, basing on its strong presence in the commercial, industrial and mining sectors in the country.
He said the investment includes building long-term relationships with quality players which are strengthening the Engen brand in Zimbabwe.
Engen Zimbabwe is 51 percent owned by locals with 10 percent in the hands of employees and 41 percent in the hands of Croco Consortium. PETRONAS, which is Engen Zimbabwe’s international partner controls the reaming 49 percent stake.
“This year marks 28 months of our existence in Zimbabwe. We started with four service stations, moved to 20 in 2012 and now they are 55 countrywide,” he said.
Mr Mapfumba said the investments are in line with Engen’s objectives to be the oil company of choice in Sub-Saharan Africa and the Indian Ocean Islands by 2016.
He said the company is now well positioned for increased growth and is introducing a number of innovative products and services to the Zimbabwe market.
Among these is the introduction of Engen Diesel 50, a high quality diesel product that contains significantly less sulphur than the standard diesel found on the market.
Vehicles running on Diesel 50 have reduced exhaust emissions and soot formation making, it more environmentally friendly.
Engen is looking at creating seamless structures as those found in South Africa and other regional countries.
“Such level of investment and growth demonstrates not only serious value addition but also underline positive possibilities that manifest when momentum of focus and execution prevails. We will continue to decentralise operations and engage more distributors,” he said.
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