Zvamaida Murwira-Senior Reporter
A MAJOR expansion of the strategic Beira-Feruka fuel pipeline is set to strengthen the country’s energy security, enhance the profitability of the National Oil Infrastructure Company of Zimbabwe and increase returns to the Mutapa Investment Fund, creating new value from one of Zimbabwe’s most critical national assets.
The project, jointly undertaken by Zimbabwe and Mozambique, will increase the pipeline’s annual pumping capacity from three million cubic metres to five million cubic metres, positioning the Beira Corridor to meet growing regional demand for fuel while reinforcing Harare’s ambitions of becoming a key energy transit hub in Southern Africa.
President Mnangagwa and Mozambican President Daniel Chapo last week presided over the groundbreaking ceremony for the second phase of the upgrade at Nhamatanda in Sofala Province.
The latest phase will see the construction of two new pumping stations; one at Nhamatanda and another at Messica in Manica Province, as the two countries deepen cooperation on strategic infrastructure designed to support trade, industrialisation and economic growth.
For Zimbabwe, the significance extends beyond fuel transportation.
The increased capacity is expected to boost business volumes for NOIC, which is a shareholder in Companhia do Pipeline Moçambique-Zimbabwe (CPMZ), the company that operates the pipeline.
Speaking on the sidelines of the launch, Mutapa Investment Fund chief executive Dr John Mangudya said the expansion would directly enhance NOIC’s revenues and profitability.
“The expansion of the capacity of the pipeline has a positive bearing on the revenue of NOIC because NOIC, as you know, is a partner with CPMZ,” he said. “So, when you increase the volume, you are also increasing business and by doing so, you are raising value and revenue.”
The increase in throughput is expected to strengthen NOIC’s commercial viability and improve dividend flows to the Mutapa Investment Fund, which was established to unlock value from State-owned assets and preserve wealth for future generations.
“When you increase revenue, you are increasing the profitability of NOIC, thereby enhancing dividends by NOIC to Mutapa Investment Fund,” explained Dr Mangudya.
“This is good for Mutapa Investment Fund. As you know, the purpose of the fund is to turn national assets into national value, so an increase in capacity has a bearing on NOIC’s commercial viability and that of Mutapa Investment Fund.”
The project forms part of broader efforts to modernise regional energy infrastructure as demand for diesel, petrol and aviation fuel continues to rise across Southern Africa. Energy and Power Development Minister July Moyo said the country was already looking beyond the current project, with plans to extend pipeline infrastructure deeper into the region.
“We are thinking of how to extend the pipeline. We have signed a pipeline agreement with Zambia and we think if we build that pipeline, other countries like Malawi and the DRC will also benefit.
“We also want to have a pipeline that goes to Bulawayo, and Botswana will draw fuel from that pipeline,” said Minister Moyo.
Such expansion would further cement the country’s role as a regional energy gateway while strengthening economic ties among countries in the region.
The upgrade is also being synchronised with improvements to the PetroZim pipeline linking Feruka and Harare, creating a more integrated fuel transportation system capable of moving larger volumes from the Port of Beira directly into Zimbabwe’s major storage facilities.
Once completed, the project is expected to increase pumping capacity by about 67 percent by the end of next year.
The 294-kilometre Beira-Feruka pipeline remains one of the most important pieces of energy infrastructure in Southern Africa, linking the Port of Beira with Zimbabwe and the wider hinterland.
Established in 1982, CPMZ operates under a public-private partnership model involving the Mozambican State and private investors and runs continuously throughout the year using an entirely Mozambican technical workforce.
Beyond its commercial benefits, the expansion is expected to strengthen regional energy security, improve logistics efficiency and support economic growth across several countries that rely on the Beira Corridor for fuel supplies.
For Zimbabwe, the project represents another example of how strategic infrastructure can be leveraged not only to support national development, but also to create long-term value from public assets through institutions such as NOIC and the Mutapa Investment Fund.
Source: Pipeline upgrade to boost Noic, Mutapa returns – herald
COMMENTS