Open Access! IMF Disappointed with Zambia
…for failing to fully implement the TAZAMA open access policy, demands that all qualifying distributors and players in the petroleum sector should be able to participate in the use of the pipeline on an even footing, with clear deadlines and objective criteria
By NATION REPORTER
THE International Monetary Fund (IMF) has said it is disappointed that the Zambian government has failed to fully implement the Open Access Policy in the use of the Tanzania Zambia Mafuta (TAZAMA) Pipeline, which would have resulted into the facility being used by all players in the petroleum sector fairly and equitably, the Africa Intelligence has disclosed.
According to the Africa Intelligence, the continent’s daily publication dated November 18, 2025, the IMF is now becoming impatient with the Zambian government and is complaining that TAZAMA had abrogated the policy by awarding a fuel contract to Indeni Energy Company from July, August up to December when they expected a rotational monthly award to different capable companies, according to the Open Access Guidelines.
The abrogation of the guidelines has inevitably resulted into the critical shortage of diesel in the country.
According to the Africa Intelligence, the IMF has now stepped up its demand that Zambia should fully open TAZAMA pipeline to a broad, transparent pool of distributors through the Open Access policy.
It said the principle of the TAZAMA Open Access Policy was to have lower fuel prices, improve price predictability, and strengthen competition in a sector that has long been shielded by a handful of players.
Officials say the IMF’s push for the open access policy was tied to the conclusion of the country’s sixth review under its Extended Credit Facility (ECF).
“When functioning with broad access, the pipeline (TAZAMA) is expected to bring down pump prices and reduce volatility at times of global oil swings yet the process to open the pipeline had been marked by controversy and unfair participation,” the African Intelligence stated.
The Africa Intelligence further reports that since government introduced a semi-annual bidding system earlier this year to shortlist distributors, players had been complaining that the framework had fallen short of its stated transparency.
It stated that in August, state-owned Indeni Energy Company Limited was allowed to run the pipeline for a four-month period – longer than the standard 30-day interval – raising concern about whether fair competition was truly being maintained.
The Africa Intelligence report states that a recent shortlist of distributors for the first half of 2026 was muddled by lack of transparency, further making the implimentation of the Open Access Policy unachievable.
The document included Oasis Oil Co. and Ayoun Energy – new entrants with ties to well-known traders – while others with substantial operating presence, such as Titanium Oil Corp, were sidelined despite successful deliveries through the pipeline.
The Africa Intelligence reveals that other familiar names on the list included Trafigura-linked Puma Energy and Geneva-based Augusta Energy affiliates, while several European and Swiss traders appeared to be missing.
“The list’s composition matters beyond optics. If the shortlist is perceived as favouring established players with deep pockets, the market risks repeating the entrenched pricing patterns that the reforms seek to dismantle,” the Africa Intelligence explains in its report.
It said the IMF’s concern was not just about access but about governance: a transparent, competitive, and predictable process that all eligible distributors could trust.
“The political tempo in Zambia adds another layer. With elections approaching in August 2026, the government is manoeuvring to show tangible gains from the subsidy reforms introduced after it took office,” the report reads.
“In April, prices at the pump fell sharply after the reforms, but they have since stabilised in the mid-20s per litre, reflecting a balance between subsidy withdrawal and global price moves.
The IMF believes: “Open access to critical infrastructure like TAZAMA is essential for healthy competition. We expect all qualifying distributors to be able to participate on an even footing, with clear deadlines and objective criteria.”
Ends.