Zuva Petroleum scouts for partners
Mernat Mafirakurewa Business Editor
Zuva Petroleum owned by businessman and FBC Holdings group chief executive officer John Mushayavanhu has begun scouting for potential partners to operate its service stations in Bulawayo.
Mushayavanhu recently bought 73 former BP & Shell Marketing Services (BPSMS) assets through his investment vehicle — Woble.
The banker acquired the assets from Masawara, which is owned by businessman Shingi Mutasa, for $29,3 million.
In a public notice last Friday, Zuva said in order to qualify, potential partners were required to have a healthy balance sheet including availing $80,000 as security.
“Zuva Petroleum is a major oil company with service stations across the country and is willing to partner with vibrant and enterprising business people to run its service stations available in Bulawayo market as franchisees,” reads the notice in part.
It could not be immediately established how many franchises the company will lease out.
Entrepreneurial skills to profitably run the service stations, a good understanding of the oil industry and a verifiable track record are also some of the requirements.
Mushayavanhu got the nod to acquire the assets ahead of British-based companies Glencore Energy and Strauss Logistics who had set their sight on the assets then held by Masawara Energy Mauritius (MEM), a joint venture between Masawara and Alveir Managament.
The purchase of the company by Mushayavanhu torched a storm from some quarters amid allegations the banker could be a front for British-based commodities firm, Glencore Holdings.
The deal was however sanctioned by the National Indigenisation and Economic Empowerment Board (Nieeb) in compliance with the country’s indigenisation and economic programme that demands that locals own at least 51 percent in foreign owned entities.
A number of foreign-owned companies have expressed interest in investing in the country’s energy industry with Puma Energy, a joint venture between Trafigura, one of the world’s biggest commodity trading companies, and Angolan state-owned Sanagol having acquired a significant stake in Redan Petroleum last year.