Online Reporter
Africa Moyo
Deputy National Editor
A MAJOR expansion of the country’s fuel pipeline infrastructure is set to boost national fuel security, increase throughput volumes and support economic growth, with annual pumping capacity expected to rise to five billion litres by the end of next year.
This follows the successful completion of the first phase of a pipeline capacity upgrade project, which increased annual pumping capacity to three billion litres last year.
The project is being spearheaded by the National Oil Infrastructure Company of Zimbabwe (NOIC), whose board chairman, Mr Innocent Chiganze, said the company was well-positioned for sustained growth, improved profitability and increased fuel sales.
In a trading update for the period ended May 31, which was presented at the company’s recent annual general meeting, Mr Chiganze said work was already underway on the second phase of the upgrade programme, which will further strengthen the country’s fuel transportation capacity.
“As we look to the future, our business is poised for growth, innovation and transformation,” he told shareholders.
“Pumping is projected to increase during the year considering the successful completion of the first phase of the pipeline capacity upgrade project to 3 billion litres pumping capacity in 2025.
“Works are already underway to ramp up the pumping capacity to 5 billion litres per year through the second phase of the pipeline capacity upgrade earmarked for completion in December 2027. We expect to exceed the annual targets on fuel injections, profitability and fuel sales.”
The enhanced infrastructure comes amid rising fuel demand and increasing use of the country’s pipeline network. In the first five months of this year, total throughput volumes reached 1,17 billion litres, meeting targets.
According to Mr Chiganze, year-to-date fuel throughput volumes have consistently outperformed corresponding levels recorded in 2024 and 2025, reflecting sustained growth momentum.
The increase in throughput was accompanied by a strong financial performance.
Mr Chiganze said total revenue for the period reached US$110,26 million, surpassing the budgeted US$107,07 million, while profit after tax climbed to US$16,19 million, significantly ahead of the budgeted US$9,64 million.
“The company delivered a strong performance for the period ended 31 May 2026, with total revenue reaching US$110,26 million, exceeding the target of US$107,07 million.”
The company also expects growth in its liquefied petroleum gas (LPG) business following the expansion of storage capacity from 650 tonnes to 2 000 tonnes.
The increased capacity is expected to improve competitiveness while supporting hospitality and trading services.
As a result of the strong performance, NOIC declared a final dividend for the year ended December 31, 2025 of ZWG590 656 860, which translates to US$22 734 447.
The dividend represents 50 percent of retained profit after tax achieved during the period under review, reflecting the company’s strong earnings performance while taking into account ongoing capital projects and other financial commitments.
