Page 11 - AfrOil Week 02 2023

AfrOil POLICY AfrOil

“The most subsidised [person] of all in the econ- argued, though, that the losses incurred through
omy is the smuggler, so we have to make this a smuggling were outweighing the benefits of the
matter of policy that is not the responsibility of subsidies and urged Luanda to take corrective
the police, who do what they can but are not measures – especially with respect to diesel,
omnipresent,” he commented. “And the more which accounts for the majority of cross-border
you involve the police, the more you are over- sales.
loading the OGE [general state budget].” “The state has to have money to bring benefits
Severino acknowledged that the govern- to those who don’t have energy – to farmers, for
ment’s fuel subsidy was well intended, as it was example – and for that it has to have resources,
designed to make gasoline and diesel more eas- which have to start coming from the balance of
ily available to disadvantaged consumers. He what is the sale of fuel,” he explained. ™

Zambia, Angola sign six accords

to cement bilateral relations

ANGOLA/ZAMBIA ZAMBIA and Angola have signed six agree- office. Hichilema highlighted the need for Africa
ments that seek to boost trade, investment and to respect people’s liberties, news24, a South
general socio-economic development, accord- African publication, reported on January 12.
ing to reports, with fuel and energy supplies high “In order to grow and entrench our democ-
on the agenda. racy, we must work together in ensuring mean-
The southern African neighbours signed ingful participation of all grounds and sections
the deals on road construction, the building of of our societies, by making sure all voices, all
a modern border post, security, education and tribes, genders, and sub-sections of society are
investment promotion during Zambian Presi- heard and heard equally,” he said.
dent, Hakainde Hichilema’s visit to Angola On The last part of his trip was a tour of an oil
January 10-12. refinery being built at Lobito, a port on the
Turkey’s Anadolu Agency cited Hichilema Atlantic coast. In April 2022, Zambia and
on January 11 stressing the need for greater Angola signed a cooperation agreement that
cooperation between the two countries in fuel could result in the former in securing a stake in
procurement and logistics. “We are actually the 200,000-barrel per day (bpd) refinery, whose
ready to sign that contract,” he said about the construction is set to be complete in 2026.
prospects of a petroleum product deal. “I still According to a proposed governance struc-
do not understand why we must import oil, at a ture, private investors, including Zambia, will
huge cost from Saudi [Arabia] and Europe, yet own 70% of the refinery, with Angola’s state oil
Angola just next door here has oil.” firm Sonangol controlling a 30% stake, The East
They agreed to the construction of a road African, a Kenyan publication, reported on Jan-
linking Zambia’s North Western Province and uary 12.
Angola’s town of Luau. “It is very natural that Zambia, as our neigh-
Zambia’s Lusaka Times noted on Thurs- bour, has a great interest in acquiring these
day that the agreement between the Zambia fuels in Angola, in the neighbouring country,
Development Agency and Angola’s Investment especially when Angola has a greater capac-
Agency Private and Export promotion is meant ity to refine the crude oil it extracts,” it quoted
to promote public and private investment in the Lourenco as saying. ™
two countries.
Hichilema’s host President Joao Lourenco
said his country was eager to engage Zambia
in livestock trade, especially beef. He called for
enhanced cooperation in mining to enable local
production of finished products instead of them
exporting raw or intermediate products.
“If we take that route, then we shall be guar-
anteed massive job opportunities for our people
and increased revenue for our countries,” he
said, according to Lusaka Times.
Hichilema addressed Angola’s parliament
on January 11. He praised Angola for holding
a peaceful election in August 2022 that handed
Lourenco a second successive five-year term in Rendering of Lobito oil refinery construction site (Image: Sonangol)

Week 02 12•January•2023 www. NEWSBASE .com P11