Namcor ready to enter fuel retail market

Namcor ready to enter fuel retail market

Staff Reporter

The National Petroleum Corporation of Namibia (Namcor) is ready to make its long-awaited entry into the fuel retail market. This entry into the competitive retail fuel market will require an aggressive and refined marketing strategy given the long existence of the international players with string brands currently operating in the country.

“Our first retail site will be operational and fully branded with our newly developed RVI (Retail Visual Identity) by end of November this year somewhere in the Omusati region. Five additional sites will be completed over the next 6 to 12 months, including our flagship site inside the Hosea Kutako International Airport. After that we will continue increasing our retail footprint in the country in the big towns, regional capitals as well as non-serviced rural areas. This is the beginning of a new era for Namcor,” said Immanuel Mulunga, Namcor’s Managing Director.

Speaking at the launch of the company’s new brand on Wednesday night, Mulunga said this is an era where “Namcor will become a true oil company with access to storage facilities in Walvis bay and new depots in several towns such as Gobabis, Ondangwa and Windhoek. An era where we would again import 50 percent of the country’s fuel requirements like in the past. An era where we would increase our market share by selling more fuel locally and to our neighbouring landlocked countries using Walvis Bay as a fuel export hub. An era where we are going to be a significant player in the lubricants and LPG markets. An era where we would operate our own petroleum exploration licence blocks and adding value to the country’s petroleum exploration endeavour. An era where we will finally take Kudu gas to production stage to produce our own electricity.”

Namcor intends to enter the retail market and roll out its retail strategy via organic and inorganic growth. Whereas an organic network development strategy entails the construction of new-to-industry retail fuel outlets, an inorganic development strategy entails the purchase of infrastructure of existing players or through the takeover of dealer-owned dealer-operated (DODO) retail fuel outlets.

Also speaking at the launch of the new brand, Minister of Mines and Energy, Obeth Kandjoze, said the new Namcor brand signifies the company’s evolving nature, given its expansion into new areas of business. “Some of its growth milestones are beginning to be realised, chief among them its fuel retail agenda, with the opening of the first Namcor branded fuel site at Tsandi in November 2017. This will be followed by another four to five sites in different parts of the country over the next 12 months and beyond,” said Kandjoze in a speech read on his behalf by Deputy Minister of Mines and Energy, Kornelia Shilunga.

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