Mmegi

Stubborn fronting limits citizens in oil sector

Liquid gold: Botswana Oil controls 90% of the country’s fuel imports PIC: MORERI SEJAKGOMO
Liquid gold: Botswana Oil controls 90% of the country’s fuel imports PIC: MORERI SEJAKGOMO

Industry players in the oil and gas sector have expressed growing concerns over the persistent issue of fronting, particularly in filling station ownership, which they say undermines citizens’ participation in the sector.

Under the Trade Act 2003 and regulations issued in 2008, licences for petrol filling stations are reserved for citizens and wholly citizen-owned companies.

However, fronting which involves foreigners working with citizens intermediaries to give the impression of local ownership, is stifling the full participation of Batswana.

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