Zambia is embarking on a bold transformation of its petroleum logistics infrastructure in a move that is expected to catalyze significant improvements in energy supply and fuel distribution. The Energy Regulation Board (ERB) issued 43 licenses and six construction permits last week, aimed at enhancing petroleum access across the country. This initiative holds significant implications for businesses, particularly in logistics, retail, and manufacturing.

What’s Changing?

The ERB’s approvals span solar and petroleum sectors, but the most notable shift is in petroleum distribution. The government is rolling out over 85 new fuel tankers, green-lighting six new service stations, and repurposing key infrastructure, such as the TAZAMA pipeline and the Indeni refinery, to boost diesel transport and storage capacity.

Moreover, in a strategic push for local participation, the ERB now mandates that at least 50% of fuel transportation must be handled by Zambian-owned companies, a policy designed to strengthen domestic industry capacity and generate local employment.

Business Impact: A Game Changer

For Zambian businesses, this marks a turning point. With more localized fuel logistics, companies can expect:

✅ Stabilized fuel supply and pump prices, reducing operational uncertainty.
✅ Lower transportation and distribution costs, especially in underserved rural areas.
✅ Improved supply chain efficiency and inventory planning.
✅ Increased market access for logistics SMEs entering the fuel distribution market.
✅ Enhanced energy security is crucial for maintaining industrial productivity and fostering confidence in foreign investment.

OfficePhase sees this as a strategic win for Zambia’s private sector. According to our analysis, supply disruptions in early 2025, particularly in Lusaka, were primarily due to logistics gaps rather than product shortages. This shift towards improved internal logistics is poised to create a more predictable operating environment for entrepreneurs and investors alike.

A Broader Vision

This overhaul is part of Zambia’s broader effort to promote import substitution and domestic value creation. The increased focus on liquefied petroleum gas (LPG) also presents startups in the clean energy and cooking fuel sectors with an opportunity to innovate and scale.

While the long-term impact of these reforms will unfold over time, businesses should begin positioning themselves to leverage new infrastructure, partnerships, and policy frameworks that prioritize local empowerment and regional trade.