Zambia Delays Reopening Main Fuel Pipeline to Open Competition Until January

Zambia has pushed back the return of open access to its primary fuel-import pipeline until January, delaying a transition to market competition months after the International Monetary Fund urged the nation to restore the system.

Ephraim Munshifwa, permanent secretary at the Ministry of Energy, confirmed the revised timeline, noting that government preparations to resume open access are already underway.

“By January, we resume open access,” Munshifwa said.

The 1,700-kilometer Tazama pipeline connects the Tanzanian port of Dar es Salaam to Zambia’s mineral-rich Copperbelt province.

It serves as a vital supply artery for the landlocked Southern African nation, which relies heavily on imported refined petroleum products to power its mining sector and broader economy.

Tazama Pipeline Ltd. had previously asked oil trading companies to pre-qualify to transport diesel through the infrastructure starting in October. The extension means full competitive access will take several months longer to materialize.

Zambia suspended open access to the pipeline earlier this year after geopolitical conflict involving Iran disrupted global energy markets and threatened domestic fuel supplies.

In response, the government enacted emergency measures and awarded Vitol Group, the world’s largest independent commodity trader, exclusive access to supply diesel through the line.

While officials defended the exclusive deal with Vitol as a temporary safeguard against acute supply shortages, international lenders pressed for a swift return to open competition.

The IMF specifically targeted the monopoly arrangement, urging Lusaka to reopen the line to facilitate lower procurement costs and market transparency. Meanwhile, preparations for the transition are now moving forward.

Tazama extended its pre-qualification deadline for prospective importers to Sept. 22 to accommodate interested companies.

When open access resumes in January, multiple fuel traders will compete for capacity on the pipeline, officially ending Vitol’s exclusive arrangement and allowing a broader pool of importers to bring fuel into the country.