Ngungula leaves Govt puzzled
• Fuel industry struggles under smuggling crisis
Angolan fuel, known locally as 'ngungula', sells for about N$6.65 a litre.
Mines minister Tom Alweendo has conceded that government is struggling to contain fuel smuggling taking place in northern Namibia.
He acknowledged government’s struggles to contain the smuggling due to the nature of the border between Namibia and Angola during a consultative meeting with members of the Namibia Local Business Association (Naloba).
“The solution is trying to police it, but the problem is, it’s really difficult for them [the Namibian Police] to [do so], unless you really want to have a continuous contingent of police across the borders. All the alternatives we've tried are simply not working and as long as [Angola’s fuel price remains unchanged], we are unlikely to deal with this problem,” Alweendo said.
According to Global Petrol Prices, a litre of petrol costs about N$6.65 in Angola, compared to Namibia’s N$23.
Naloba vice-president Kanu Amadhila said many of its members participating in the retail fuel industry were struggling because of fuel smuggling between Namibia and Angola.
Losing battle
“Minister, fuel smuggling from Angola into Namibia continues to not only destroy our economy, but it has left many businesses closed and caused a loss of jobs - especially in the northern parts of the country. Many entrepreneurs borrowed money from commercial institutions and are unable to service their commitments and [their properties] are being repossessed,” Amadhila, who owns a service station in Outapi, told Alweendo.
Several service stations at Omafo and Ondobe in the Helao Nafidi constituency have closed down, Alweendo was told.
Jafet Nakanue, the owner of EJ Service Station in Oshikango, said he partnered with Puma for the franchise, which is a 25-year agreement, and has been in business for less than 10 years. He only made a profit back in 2016 when he opened the service station, he recently narrated to Namibian Sun.
Nakanue said that was the year before the smuggling started, ‘killing’ the majority of service stations in the area.
“In 2016, I made 100% sales. The years that followed were a nightmare. Things are bad.”
During the Covid-19 pandemic, sales improved when the borders were closed, but soon they began to decline again when the smugglers were back in business, Nakanue said.
He acknowledged government’s struggles to contain the smuggling due to the nature of the border between Namibia and Angola during a consultative meeting with members of the Namibia Local Business Association (Naloba).
“The solution is trying to police it, but the problem is, it’s really difficult for them [the Namibian Police] to [do so], unless you really want to have a continuous contingent of police across the borders. All the alternatives we've tried are simply not working and as long as [Angola’s fuel price remains unchanged], we are unlikely to deal with this problem,” Alweendo said.
According to Global Petrol Prices, a litre of petrol costs about N$6.65 in Angola, compared to Namibia’s N$23.
Naloba vice-president Kanu Amadhila said many of its members participating in the retail fuel industry were struggling because of fuel smuggling between Namibia and Angola.
Losing battle
“Minister, fuel smuggling from Angola into Namibia continues to not only destroy our economy, but it has left many businesses closed and caused a loss of jobs - especially in the northern parts of the country. Many entrepreneurs borrowed money from commercial institutions and are unable to service their commitments and [their properties] are being repossessed,” Amadhila, who owns a service station in Outapi, told Alweendo.
Several service stations at Omafo and Ondobe in the Helao Nafidi constituency have closed down, Alweendo was told.
Jafet Nakanue, the owner of EJ Service Station in Oshikango, said he partnered with Puma for the franchise, which is a 25-year agreement, and has been in business for less than 10 years. He only made a profit back in 2016 when he opened the service station, he recently narrated to Namibian Sun.
Nakanue said that was the year before the smuggling started, ‘killing’ the majority of service stations in the area.
“In 2016, I made 100% sales. The years that followed were a nightmare. Things are bad.”
During the Covid-19 pandemic, sales improved when the borders were closed, but soon they began to decline again when the smugglers were back in business, Nakanue said.
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