Malawi is sitting on nine financial instruments worth $117 million (about K90 billion) that are supporting the importation of fuel into the country this year, the Malawi Energy Regulatory Authority (Mera) has disclosed.
Of the nine facilities, eight are being supported by local commercial banks while one is being discussed and finalised with African Export-Import Bank in Egypt.
Mera chief executive officer Collins Magalasi said this yesterday in Lilongwe during newly-appointed Minister of Energy Newton Kambala’s visit to Mera head office.
Magalasi said the country’s fuel imports this year are being supported by EcoBank’s $15 million Syndicated Facility, National Bank of Malawi’s $15 million Standby Guarantee Facility, Standard Bank’s $15 million Revolving Facility, First Capital Bank’s $10 million facility, FDH Bank’s $5 million Revolving Facility, CDH Investment Bank’s $5million facility, NBS bank’s $5 million facility as well as Nedbank’s $2 million facility.
Currently, the country is also discussing another facility with Afrexim Bank worth $45 million for the National Oil Company of Malawi (Nocma).
Briefing the minister on the fuel supply situation, Magalasi explained that as of yesterday, the country had adequate fuel supplies both within the country and at the ports of supply with internal stocks at an equivalent of 48.5 days cover, 15.8 days cover and 77 days cover for diesel, petrol and paraffin, respectively.
He said Mera is continuously monitoring the fuel supply situation to ensure security of supply.
“Importation of fuel into the country was liberalised, hence having 35 licensed importers. However, Nocma is the authorised manager of the strategic fuel reserves,” explained Magalasi.
Last year, the country imported about 510 million litres of fuel.
Magalasi also informed the minister that the country has 409 licensed service stations undertaking in liquid fuels and gas sector as at June 30, 2020 of which 303 are retail licensed fuel services stations.