As Botswana’s largest citizen-controlled petroleum distributor, Kwa Nokeng Oil has reinforced its commitment to developing local enterprises through substantial investments in citizen-owned transport and supply companies, Chief Executive Officer Mahube Mpugwa revealed this week.
The company’s latest figures demonstrate remarkable progress in citizen empowerment, having created over 500 direct employment opportunities while channeling approximately P69 million annually to citizen transporters and nearly P400 million to local fuel suppliers in the current financial year alone.
Strategic Transport Partnerships
During the 2023/24 financial year, Kwa Nokeng Oil maintained a strong bias toward citizen transporters, contracting 81 fuel tankers in total. Of these, 56 (representing 69 percent) were fully owned by Batswana entrepreneurs, while the remaining 25 (31 percent) were operated by foreign companies. This distribution reflects the company’s deliberate policy to prioritise citizen participation in its procurement value chain.
However, Mpugwa noted a temporary adjustment anticipated in the 2024/25 period, where the total number of contracted tankers is expected to increase to 90, but citizen-owned units may decrease to 51 (57 percent of the fleet). This projected shift stems from recent operational challenges caused by civil unrest in Mozambique and that some of the transporters were avoiding traveling due to incidents of harassment and vehicle damage.
“When the situation stabilises, we will rebalance our transporter mix to include more citizen operators,” Mpugwa assured. “Our commitment to developing Batswana businesses remains unchanged.”
Fuel Volume Distribution
The company’s transportation data reveals citizen operators moved 66,129,446 litres of fuel (66 percent of total volume) in 2023/24, significantly outpacing foreign transporters’ 34,028,135 litres (34 percent). The combined total reached 100,157,580 litres for the period.
Looking ahead to 2024/25, while absolute volumes are expected to grow for both groups, citizen transporters are projected to maintain a majority share at 55 percent, moving 90 million litres compared to foreign operators’ 73 million litres. The overall transportation volume is anticipated to exceed 160 million litres – a substantial increase reflecting the company’s growing market presence.
Procurement Spending Patterns
Kwa Nokeng Oil’s procurement expenditure tells a compelling story of citizen economic participation. In 2023/24, the company spent a total of over P800 million on fuel procurement, with 52 percent going to citizen suppliers and 48 percent spent on foreign suppliers.
For the current 2024/25 period, total procurement costs are projected to rise. However, due to the temporary transport constraints caused by unrests in Mozambique, procurement from citizen suppliers is expected to decrease to 22 percent, while spending on foreign transporters may increase to 78 percent.
“These figures represent operational adjustments, not policy changes,” Mpugwa emphasised. “We remain fully committed to our citizen economic empowerment mandate.”
The company has also maintained significant non-fuel spend such as on tanks, maintenance and equipment sourced through citizen suppliers, and this amounted to over P70 million in 2023/24.
Developing Local Enterprises
What makes Kwa Nokeng Oil’s empowerment strategy particularly impactful is its willingness to nurture startups. “Many of these citizen companies began working with us when they had no balance sheets or trading history,” Mpugwa revealed. “We deliberately gave emerging entrepreneurs opportunities, and we’re proud to see how they’ve grown.”
This development approach has created success stories like one local transporter who began with a single truck and has since expanded his fleet to between five and ten vehicles through a consistent partnership with Kwa Nokeng Oil.
From Humble Beginnings to Market Leadership
Kwa Nokeng Oil’s journey mirrors Botswana’s economic evolution. Founded in 1968 as a modest retail operation in Machaneng village.
Under avid entrepreneur; Clinton van Vuuren, the company initially focused on retail fuel sales until 2005 when it transitioned to commercial fuels and wholesale distribution.
The company established its first commercial fuel depot in 2006, initially distributing one million litres annually. Today, it boasts more than 10 commercial fuel depots nationwide, supplying over 90 million litres of fuel per year – making it Botswana’s largest majority citizen-owned petroleum company.
Strategic Positioning in SADC Trade
Kwa Nokeng Oil’s growth has been closely tied to Botswana’s emergence as a critical transit hub within the Southern African Development Community (SADC) region. The company recognised early the opportunities presented by cross-border trade, particularly after the completion of the Trans-Kalahari Highway, which reduced the distance between Windhoek and Johannesburg by nearly 700 kilometers.
“With Johannesburg being the economic hub of the region, this infrastructure development significantly accelerated goods movement within SADC,” Mpugwa explained.
The company has strategically positioned itself along key trade routes, establishing truck stops at major border posts like Martin’s Drift and Pandamatenga. Today, it operates 10 truck stops across Botswana and the SADC region, offering comprehensive services including all-round refueling facilities, vehicle maintenance support, border crossing assistance and driver amenities including ablutions and WiFi.
Employment and Service Excellence
As a proudly Botswana company, Kwa Nokeng Oil employs over 500 citizens, some of whom have been with the organisation as far back as 1970. The company has built its reputation on reliable service, accountability, and the ability to deliver products to customers’ doorsteps on time, every time.
Future Outlook
With more than 50 percent of its business involving cross-border operations, Kwa Nokeng Oil continues to strengthen relationships across the SADC region to ensure uninterrupted fuel supply. The company’s truck stops now fill an average 1000 trucks daily, with drivers relying on their comprehensive support services.
“We stand out because customers trust us to have the fuel they need when they arrive,” Mpugwa said. “Our success stems from our deliberate policy to partner with citizen companies wherever they complement our operations.”
As Botswana’s fuel sector continues evolving, Kwa Nokeng Oil appears well-positioned to maintain its dual role as both commercial leader and citizen empowerment champion – proving that business success and national development can go hand in hand.
