By JOHN CHOLA
Indeni Energy Company Limited needs external financing to reposition itself as a key player as the country seeks to boost its copper production to three million metric tonnes by 2033.
Indeni Business Development and Corporate Affairs Manager Nchimunya Milambo said Indeni is exploring financing options, including public-private partnerships (PPPs) to meet increasing demand.
“We are growing organically, reinvesting profits, but we also need external financing to scale up operations and meet Government’s goals.”
Speaking at the inaugural Zambia Mining and Investment Insaka, Milambo, highlighted the company’s role in supplying 60 percent of the nation’s diesel needs, primarily through the Tazama pipeline.
“Sixty per cent of the diesel on the market is supplied through Indeni, with the remainder coming by road. This strategic role, supported by Indeni’s 156-million-litre storage capacity, allows the company to create a buffer, ensuring supply stability and efficiency.”
However, Milambo emphasises the need for further investment to meet Zambia’s growing energy demands, driven by the government’s ambitious mining targets, “Zambia’s industrial growth, particularly the push beyond copper, cannot be realised without corresponding energy investments.”
Indeni is also focusing on modernising its operations, having already installed automated tank gauging systems to improve accuracy and efficiency.
HUMAN CAPITAL
Milambo stresses the importance of human capital development alongside technological upgrades. “It would be catastrophic to invest in technology without equipping our staff to manage it. We are committed to enhancing the skills of our workforce to align with technological advancements.”
Indeni’s strategic expansion comes at a time when Zambia is positioning itself as a middle-income nation.
“The future of Zambia’s mining sector, particularly the goal of three million metric tonnes of copper by 2033, hinges on reliable energy supply. Indeni is prepared to meet this challenge, and we are excited about the opportunities for growth,” Milambo said.
Addressing concerns about Indeni’s sustainability, Milambo has reassured stakeholders that the company is on a solid path.
TRANSFORMED
“There’s no fear now. People still look at us with scepticism, but we’ve transformed our business and are becoming more viable by the day.”
Despite past challenges, the company has remodelled its operations to align with evolving Government policies and market demands.
“We have transformed our trading approach, and profitability is improving day by day. Challenges will always be there, but our extensive experience since 1973 has equipped us to navigate them effectively,” he remarked.
Milambo also highlighted the favourable business environment created by the Zambian Government, which has provided incentives and addressed some liability issues to facilitate Indeni’s growth.
“The overall picture shows that we are trading organically, and the environment is conducive for Indeni to thrive,” he said.
TERMINAL
Indeni’s strategic expansion plans include modifications to its plant to function more like a fuel terminal, enhancing its capacity to handle larger volumes.
While the specifics of the investments required for upgrading loading and offloading systems, or “gantry,” were not disclosed, Milambo assures that detailed plans are in place.
“We are taking a cautious approach to growth, ensuring that we do not rush into partnerships that may compromise our strategic position. We aim for a win-win situation where both Indeni’s mandate and the interests of potential partners are aligned.”
