TAZAMA Deliver K89 million Dividend to Government

TAZAMA Pipelines Limited has handed over a dividend of K89.6 million to government.

The cheque was received on behalf of government by Minister of Finance

Situmbeko Musokotwane, who revealed that the funds will be allocated to sectors that benefit Zambians and help address the drought situation.

TAZAMA is a government parastatal, with Zambia holding 67% of the shares and Tanzania holding the remaining 33%. The company’s board chairperson Peter Mumba confirmed that Tanzania had received K45 million in dividends. The entity has not declared dividends since 2019, when the government received K37 million.

Meanwhile, Minister of Energy Makozo Chikote said that TAZAMA is making good progress in the construction of a new multi-product pipeline to carry five million metric tonnes of petroleum products annually. The original pipeline was built in 1968 with a capacity of 1.2 million metric tonnes annually.

The Minister credited progress at TAZAMA to the leadership of President Hichilema stating, "This milestones has been made possible due to several reforms in place under the able leadership of his Excellency President Hakainde Hichilema, the petroleum sub-sector, including the conversion of TAZAMA pipelines from transporting commingled feedstock to transporting low-sulfur gas oil from Dar es Salaam to Ndola when we took office."

The new oil pipeline is planned to measure around 24 inches and run from Indeni refinery in Ndola to Dar es Salaam in Tanzania. It is hoped that by widening the pipeline from 12 to 24 inches trade will be boosted and the countries will be better positioned to meet increasing demand for energy. Minister Chikote updated that TAZAMA has reached an advanced level stage in the procurement process.