As fuel queues ease, is Chakwera’s G2G Fuel Procurement Strategy Finally Working?
As Malawi’s fuel queues begin to ease, many are asking whether President Lazarus Chakwera’s much-debated Government-to-Government (G2G) fuel procurement strategy is finally delivering results. With the arrival of at least 300 fuel trucks in recent days, optimism is growing that the crisis that has plagued the nation for months may be subsiding.
The trucks, which began arriving last Saturday, include 100 managed by local transporters and 200 by Tanzanian haulers. These vehicles are part of a larger consignment of 1,409 trucks expected to deliver 51.5 million litres of diesel and petrol under the G2G deal between Malawi and Abu Dhabi, facilitated through Kenya’s existing arrangement with the United Arab Emirates (UAE).
This development has visibly eased fuel queues across the country. The National Oil Company of Malawi (Nocma) has expressed confidence that the ongoing deliveries will sustain the supply. Speaking on the matter, Frank Banda, spokesperson for the Transporters Association of Malawi (TAM), stated that an additional 400 trucks—including 100 from TAM, 86 from International Haulage Brokers, 20 from Petroda, and 200 owned by Tanzanian companies—are currently loading fuel at Tanzania’s Tanga Port and are expected to arrive in Malawi by Tuesday.
Further bolstering the supply chain are 40 trucks from Petroleum Importers Limited and 60 others carrying fuel procured through an open tender, also en route from Dar es Salaam, Tanzania. “We should expect fuel to continue normalizing with this haulage,” said Banda, whose institution plays a critical role in ensuring the smooth transport of fuel into Malawi from Tanzania and Mozambique.
While the easing of fuel shortages is a welcome relief, challenges remain. TAM chairperson Happy Jere has called on the government to address the thriving black market for fuel, which he believes undermines supply efforts. “We hope that the steady fuel supply will continue and that the commodity will also be available in rural areas. The challenge we see is the thriving black market. It has to be dealt with because it creates unnecessary shortages,” he said.
The G2G strategy itself is still evolving. According to Minister of Energy Ibrahim Matola, the current arrangement with Abu Dhabi is an interim measure. The government has invited expressions of interest from refinery countries in the Arab world, including UAE, Saudi Arabia, Oman, Qatar, Bahrain, and Kuwait, to establish a long-term G2G agreement.
“We want to see their margins and premiums so that we can determine who should be given the contract to manage the G2G,” said Matola. He added that government entities such as the Malawi Energy Regulatory Authority (MERA), Nocma, and the Public Procurement and Disposal of Assets Authority (PPDAA) will oversee the process to ensure transparency and accountability.
Malawi’s fuel demand stands at 1.05 million litres each for diesel and petrol daily, translating to an annual import bill of $600 million (approximately K1 trillion), according to the Reserve Bank of Malawi. With such significant expenditures, sustaining a steady supply of fuel remains crucial for the country’s economic stability.
The easing queues and the inflow of fuel are undoubtedly positive signs, but critical questions linger. Will the G2G arrangement prove sustainable in the long term? Can the government address the black market’s impact on fuel availability? And will rural areas, often the hardest hit during shortages, benefit from the improved supply?
For now, Malawians can breathe a sigh of relief as the immediate crisis subsides. However, the true test of Chakwera’s G2G fuel procurement strategy lies in its ability to provide consistent and equitable access to fuel across the nation—a challenge that only time will reveal.
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