He exudes a natural zest and an easy, quiet confidence. When he speaks, his command of the English language is impeccable and coated with a light, French accent. His in-depth knowledge of Zambia, its history, landscapes, regions, people and economy is nothing short of remarkable; so remarkable, in fact, that at first encounter, you might be forgiven for thinking that he is a resident of the country. He is not. His delivery is matter-of-fact. He is a man who, apparently, believes in telling it as it is and letting the facts speak for themselves.
Enter Mr. Fadi Mitri, the Head of Africa at Puma Energy.
Fadi Mitri is a man with a message and not in any ordinary sense. He wants his message to be heard far beyond media houses. Mr Mitri’s desire is for his story to permeate into the very homes of his customers. Apparently, this lofty ambition was the reason behind the June 23rd lunchtime roundtable discussion with press and media hosted at Intercontinental Hotel by the Zambia subsidiary of Puma Energy.
“This is an opportunity to inform and educate the population,” Mr. Mitri said. “Puma Energy has a policy of presenting facts. We encourage you to ask questions and you can be guaranteed that when you do ask questions, you will be presented with facts. Opinions are welcome, of course; that is your role. But from us, you will get facts.”
That Puma Energy Zambia pulled out such a big gun for a press roundtable is telling, in and of itself. It implies that the company’s leadership believe that they have an important message for the Zambian masses. The manner in which the discussion was conducted appeared to confirm this notion. The roundtable was a cosy affair and comprised only three media guests, one from each of the Times of Zambia, the Daily Mail and Financial Insight Zambia (FiZ). On the other hand, the Puma Energy entourage had six company officers. Alongside the Head of Africa was the Managing Director of Puma Energy Zambia, a Mr. Patricio Chababo, the Chief Financial Officer, Moono Simatyaba, the Operations Manager, Aissata Bah Sondoyi and the Corporate Affairs and Government Relations Manager, Knight Silumesii. The entire event was carefully choreographed by Mildred Kaunda, founder of Cutting Edge Ltd, a corporate affairs and public relations company.
Three against six; talk about being outgunned – but, to be honest, that is a little cruel.
The careful choreography was designed to convey, not just the seriousness of the message that Puma Energy Zambia wishes to share with Zambian citizens, but also the fact that this was not intended as a headline-grabbing event. This approach largely succeeded. It became evident that Puma Energy Zambia is seeking dialogue with its customers; a dialogue that cannot be delivered whilst one is filling up one’s fuel tank. Fadi Mitri, who made most of the presentation, conveyed the central tenets of this dialogue in a characteristically minimalist but incisive delivery.
His message is clear and quite stark: there be dragons behind the scenes of Zambia’s fuel-energy market. All stakeholders of the fuel-energy value chain need to understand the constraints and uncertainties that plague the oil business. To a casual observer, the business model for fuel energy might appear very straightforward and quite attractive. Import fuel and lubricants and resell to the market – simple, right? Well, it turns out, maybe not quite so simple, as the writer got to discover.
The landscape for the international sourcing and supply of fuel energy and related products is a rich tapestry, woven by important, international actors with vested interests. These actors include large oil producing countries, refineries, wholesalers, and traders who transport the products from the refineries to the shores. Only then is a country like Zambia presented with an opportunity to exercise its purchasing power, through its Oil Marketing Companies (OMCs). Zambia’s ability to wield any influence on this market is, at best, limited and, at worst, non-existent.
“It is very important,” says Mr. Mitri, “To explain to the Zambian nation that hydrocarbon energy is something that is price-thick. We cannot go to the international market and demand, to be given oil and gas at the prices the we want and say ‘or else, we will not buy.’ Because the markets will turn around and say well, do not buy, then.” According to Mr. Mitri, the situation for the country is compounded by its land-locked geographical position.
The conditions set by actors in the market, the geographical position of Zambia and the economic realities it faces, such as inflation, interest and exchange rates, combine to create credible threats to the security of supply of fuel energy to the country. Mr. Mitri explored the factors that enhance or reduce the security of supply of fuel energy, including the nature of the pricing model that a jurisdiction adopts and how that pricing model is implemented.
But it is not all doom and gloom because opportunities abound too. While the prospects of a country like Zambia influencing the international oil market might be slim, Mr. Mitri was careful to add that there is a lot that can be done, both at state and private-sector levels. This includes investing in and safeguarding appropriate strategic assets, an activity in which both sectors can participate. Indeed, Mr. Mitri proceeded to highlight a number of strategic investment programmes that are currently being rolled out by Puma Energy Zambia, to ensure that it plays its part in the process of guaranteeing security of supply, including diversifying into renewable energy and investing in rural communities.
In the space of just over an hour, Mr. Mitri and Mr. Chababo delivered a first-class lecture in the basic economics of the supply-side dynamics of the oil and gas industry and in what a country like Zambia can do to remain resilient and ensure continuity of fuel supply. In so doing, the duo also delivered a treasure-trove of content.
FiZ wishes to digest some of this content and share it with its readers. Over the coming weeks, we shall see if we can do just that. Who knows, if you ever think about starting a fuel energy business, Mr. Mitri’s and Mr. Chababo’s insights could prove to be valuable knowledge to have as your starting point.
About Puma Energy’s Operations
Puma Energy operates in 16 countries in Africa, where they have around 700 retail installations with access to about a million cubic metres of storage. In the particular context of Zambia, Puma Energy operate four terminals (depots) and have the largest privately owned, oil-product storage facilities in the country, boasting nearly 25,000 cubic metres. They have expanded their retail offering to 59 sites with plans to reach 66 by the end of next year. Puma energy also operate from Zambia’s three major airports, providing aviation refuelling infrastructure to the air travel industry.
The company’s influence stretches right across Zambia, delivering essential products and services to key sectors. With a comprehensive network of retail sites, Puma Energy is the largest energy retailer in Zambia, consistently holding a significant market share of over 20% overall and over 17% for the retail sector. The company’s extensive storage capacity, both in Zambia and across Southern and Sub-Saharan Africa, guarantees a reliable supply of fuels, LPG and lubricants.
In recent years, Puma Energy has recognised the global shift towards sustainable energy practices and has embraced renewable energy technologies, particularly solar power. Commenting on this strategic shift, Mr. Mitri had this to say: “Before the era of load-shedding, it did not make sense for Zambia to invest in solar energy, because there was no economic case for it. The cost was too high and there was an abundance of relatively cheap hydro-electric power.”
Mr. Mitri went on to posit that while Zambia’s reliance on hydroelectric power historically rendered solar energy less viable, recent challenges such as load-shedding and rising costs of the diesel-powered substitute, alongside the reducing costs of renewable energy, have created a compelling economic case for solar energy investment. By diversifying the energy mix and reducing dependence on fossil fuels, Puma Energy is actively contributing to Zambia’s low-carbon future.
In the employment arena, Puma Energy‘s operations have had a significant impact on jobs. Mr. Mitri stated that the company has approximately 250 direct employees. He added that Puma Energy’s reach extends far beyond the 250 direct workforce by stimulating indirect employment opportunities. Through its retail stations, inland depots and various facilities, Puma Energy has created a robust ecosystem of sub-contractors, transporters and suppliers. When this multiplier effect is taken into account, Mr. Mitri is confident that Puma Energy‘s total employment base is easily four times larger than the headcount of its direct employees. As a vital player in the Zambian economy, contributions by Puma Energy Zambia resonate across multiple industries, particularly mining, aviation and transportation.