By Suleman Chitera
The Centre for Democracy and Economic Development Initiatives (CDEDI) has launched a scathing attack on the government, demanding an immediate reduction in fuel prices and accusing authorities of failing Malawians due to what it describes as state capture by powerful cartels operating within the fuel supply chain, foreign exchange market, and public procurement systems.NOCMA defends UAE and GET Global fuel deals: No foul play involved
In a strongly-worded statement signed by its Executive Director, Sylvester Namiwa, CDEDI alleges that ordinary Malawians are being forced to shoulder the burden of inflated fuel costs while a small group of politically connected individuals and foreign companies continue to benefit from lucrative deals.
Namiwa specifically targeted the National Oil Company of Malawi (NOCMA), claiming that the state-owned entity has abandoned its original mandate of safeguarding national fuel reserves and is now serving the interests of politicians and business elites.
“Instead of protecting the public interest, NOCMA has become a vehicle for enriching a select few,” the statement reads.NOCMA promises improved fuel supply with 19.2 million liters in transit
According to CDEDI, NOCMA has awarded the bulk of fuel haulage contracts to foreign transport companies that are paid in United States dollars, while also relying on foreign insurance providers. The organization argues that these decisions are draining scarce foreign exchange reserves and undermining local businesses.
The pressure group further claims that more than 900,000 litres worth of local tanker capacity remains idle as foreign transporters dominate fuel transportation routes, including corridors that were previously reserved for Malawian-owned firms.
Namiwa accused NOCMA of transforming itself from a strategic reserve manager into a commercial oil marketing company, a move he says has distorted competition and weakened local participation in the petroleum sector.
As part of its proposed reforms, CDEDI wants NOCMA to immediately stop using foreign transporters and prioritize local haulage companies. The organization is also calling for increased use of rail and pipeline infrastructure to reduce transportation costs.Police turn looters: Officers Arrested for Stealing Confiscated Fuel in Mangochi Scandal
In a more ambitious proposal, CDEDI has urged Malawi to partner with neighbouring Zambia in investing in Angola’s Lobito Oil Refinery project and to establish a domestic oil refinery. According to the group, local refining capacity could not only lower fuel costs but also help address recurring fertilizer shortages that continue to affect the agricultural sector.
The accusations come at a time when Malawians are grappling with rising living costs, foreign exchange shortages and growing concerns over the country’s economic direction.
NOCMA had not responded to the allegations by the time of publication.
The claims are likely to intensify debate over fuel pricing, foreign exchange management and the role of state-owned enterprises in Malawi’s struggling economy.Fuel Haulage Row Explodes as TAM Accuses NOCMA of Sidelining Malawian Transporters