Zimbabwe Fuel Sector Powers Ahead as Licenses and Imports Soar

Sunday News  

August 3, 2025

Nqobile Bhebhe 

Zimpapers Business Hub

ZIMBABWE’S petroleum sector has significantly expanded over the past 12 years, with operating licences more than tripling and fuel imports hitting record highs, a sign of rising investor confidence, stronger economic activity and deeper integration of energy supply into national development.

According to the Zimbabwe Energy Regulatory Authority (Zera) 2024 annual report, the number of licensed operators across retail, procurement, wholesale, blending and production rose from 299 in 2012 to 1 083 in 2024, a growth of over 260 percent.

Retail, the largest category, saw the most significant jump from 229 licences in 2012 to 996 in 2024 with a notable surge in 2021, when the number rose from 733 to 882 despite global economic headwinds.

Procurement licences, allowing private players to import fuel, peaked at 130 in 2019 before settling at 59 in 2024, indicating sustained private-sector involvement in fuel supply.

Wholesale growth was steady but limited, while blending licences averaged 11 annually in support of the country’s ethanol blending policy.

Production licences remained small in number but are expected to grow as local manufacturing capacity develops.

Zera attributed the expansion to a transparent and enabling regulatory framework that has decentralised supply chains, attracted private investment and expanded infrastructure into growth points and rural areas.

“With over 1 000 active licences across categories by 2024, Zimbabwe’s petroleum sector is positioning itself as a key enabler of industrial growth, trade logistics and transport connectivity in line with Vision 2030,” said economist Ms Alice Chikonzi.

“The consistent increase in the number of retail licences issued is a sign of investor confidence and increased accessibility of petroleum products to consumers across the country.

“Fuel retailing is becoming a viable enterprise, especially as Government policies have allowed more players into the sector.”

The sector’s growth is mirrored in fuel import data. Diesel imports, which are often seen as an economic activity barometer, climbed from 736 million litres in 2020 to 1,1 billion litres in  2024.

Petrol closed 2024 at 568 million litres, while Jet A1 aviation fuel imports rose more than fourfold from 21,8 million litres to 95,1 million litres, reflecting a rebound in tourism and aviation.

Liquefied petroleum gas (LPG) also saw strong growth, up 17,14 percent from 66,1 million kg in 2020 to 77,4 million kg in 2024, driven by households switching from paraffin and firewood to cleaner energy. LPG retail licences peaked in 2021 at 356, with over 1 300 licences issued between 2015 and 2022.

However, Zera warned of continued smuggling of 48kg LPG cylinders, some linked to fire incidents. In 2024, 206 smuggled cylinders were confiscated and destroyed. The regulator is engaging South African suppliers to curb the problem.

“Zera is engaging South African owners of smuggled cylinders, urging them to improve control of the circulation of their cylinders so that they are not smuggled out and end up in the hands of illegal LPG dealers,” the authority said.

With imports rising, licensing expanding, and infrastructure spreading nationwide, analysts say the petroleum sector is poised to remain a cornerstone of Zimbabwe’s industrialisation and economic transformation.