We are the National Oil Company of Malawi (NOCMA) Limited, wholly owned by the Government of Malawi.
We are the National Oil Company of Malawi (NOCMA) Limited, wholly owned by the Government of Malawi. Formed in line with the National Energy Policy of January 2003, NOCMA was registered on 14thDecember 2010 under the companies Act of 1984.
With our head office in Kang’ombe House in City Centre in Malawi’s capital Lilongwe, we have an office at Mwanza border post and have operations through an agent at Songwe border to handle incoming fuel tankers
In the early 1990’s, liquid fuel importation was in the hands of the private sector. Oil imports were facilitated on behalf of Oil Marketing Companies (OMCs) through the Industry Petroleum Supply Unit (IPSU).
The floatation of the Malawi Kwacha in 1994 resulted in heavy exchange losses for the oil industry. Consequently, IPSU handed over fuel importation to Government, which directed that the Petroleum Control Commission (PCC), established by an Act of Parliament, combine both regulation and importation of liquid fuel into the country.
In 1999, PCC stopped importation of fuel because of concerns raised by multilateral partners on governance issues such as combining the role of a regulator and importer of fuel for the country. The role of importation reverted to the private sector through the Petroleum Importers Limited (PIL), a consortium of oil marketing companies.
However, the oil companies do not have adequate storage capacity and do not seem to have the incentive to invest significantly in this area. In the absence of the strategic fuel reserves, this arrangement does not provide for fuel stocks to last for a reasonably longer period, leaving the country very vulnerable to supply chain shocks.
In 2003, the Government of Malawi, with financial support from the World Bank and the United Nations Development Programme (UNDP), developed the National Energy Policy for Malawi. The Energy Policy identified various challenges faced by the oil industry in Malawi. These included unreliability of supplies, lack of competition in the oil industry and the absence of proper institutional arrangements to champion upstream activities in oil and gas for the country.
The policy, therefore, recommended the establishment of a national oil company through an Act of Parliament. However, the company was registered under the companies Act of 1984.