Government has quietly shelved a controversial fuel supply deal which Secretary to the President and Cabinet, Colleen Zamba, who is also Nocma’s Board Chairperson, facilitated.

In the deal, a “ruler” from the United Arab Emirates (UAE) named Sheikh Ahmed Bin Faisal Al Qassimi would supply 250,000 metric tons of fuel.

Malawi would pay for the fuel in Kwacha.

The deal came with fanfare, with the Nocma (National Oil Company of Malawi) CEO, Clement Kanyama, assuring the nation that the Sheikh was one of the legitimate ‘rulers’ in the UAE. He even said Malawi government and the office of the ‘ruler’ negotiated the deal.

On November 27, 2024 President Lazarus Chakwera announced that his administration had decided to begin the process of transitioning Malawi from the Open Tender System for procuring fuel to a government-to-government arrangement.

He said this would make access to fuel more secure through better payment terms and cycles.

Chakwera further announced that he had constituted a committee to facilitate and execute all aspects of this policy.

Minister of Energy would chair the committee which would comprise a technical team of technocrats from respective ministries to work with the committee to speed up securing of the first G-to-G agreements.

Given Malawi’s struggle to procure foreign exchange for fuel imports, and considering the Sheikh’s offer of fuel assistance payable in Malawian Kwacha, particularly given his position as a ruler in the UAE, Malawi could have been eager to embrace this deal as part of the G-to-G arrangement.

That, however, is not the case. A source within the taskforce on fuel procurement has told Malawi News that revealed that the Sheikh deal isn’t on the list.

“I can confirm that the deal is not on our table. In the UAE, the President and the taskforce are engaging the UAE government directly through the UAE leadership, whom the President met when he visited,” the source said.

The final nail in the coffin for the Sheikh’s deal came from the Malawi Energy Regulatory Authority (Mera).

In a memo to Nocma, Mera revoked its previous resolution, citing concerns about the fuel supply situation, rising pump prices and growing under-recoveries.

The memo, dated October 11, 2024, emphasised that the Sheikh’s deal conflicted with Mera’s ongoing review of the fuel importation and pricing structure.

“I would like to advise that after a careful review of the critical aspects of the fuel supply situation, prevailing pump prices, growing under-recoveries, associated fuel importation costs whilst considering end-user interests, the Authority hereby revokes the said resolution.

“Nocma is therefore prohibited from proceeding with the said tendering and procurement effective immediately, until a subsequent