21 Nov 2024
Vivo Energy Namibia’s focus on innovation, service quality, and strategic growth drives Shell’s expansion across Africa, despite a regulated market and increasing competition.
Shell, operating through Vivo Energy Namibia, remains undeterred by growing competition in the country’s regulated fuel market, as it prepares to integrate Engen service stations into its network, officials said.
Vivo Energy Namibia Managing Director Jaco van Rensburg said the company is focused on innovation and leveraging its strengths.
“Competition is always good, but when it comes to fuels, we operate in a regulated market where prices are determined by the Ministry of Mines and Energy. This means fuel prices are the same at every station, so for us, it’s about providing the best technology, like V-Power, which offers top benefits at the same price as any other fuel in the country,” van Rensburg said.
The statement comes on the heels of Chevron Brands International LLC’s recent partnership with Bachmus Oil to expand its presence in Namibia. Chevron signed a long-term licensing agreement with Bachmus to launch Caltex fuel retail outlets in the country.
Shell’s strategy includes improving service offerings without overcrowding the market. However, van Rensburg noted that competition regulations limit expansion within Namibia.
“We don’t have room to expand significantly in Namibia because of competition regulations, but Vivo Energy, as a company, continues to grow on the African continent. That’s why Vivo acquired Engen from Petronas earlier this year. Now, we are the owners of Engen, which operates in eight African markets alongside our Shell-licensed markets, like Namibia,” he said.
Currently, Vivo Energy manages 75 Shell stations and 58 Engen stations in Namibia. The company’s immediate priority is integrating and rebranding the Engen network, a process expected to take six to nine months.
“Our priority is to integrate and rebrand the Engen stations into the Shell network. This process hasn’t started yet, but it will begin soon. The entire rebranding process will likely take six to nine months before customers start seeing the changes in the market,” van Rensburg said.
The merger of Engen and Vivo Energy has created one of Africa’s largest energy distribution companies. The combined entity operates over 3,900 service stations and manages more than two billion liters of storage capacity across 27 African countries.
Engen, a market leader in South Africa, has approximately 1,300 service stations across seven African nations. Vivo Energy operates over 2,600 service stations in 23 countries under the Shell and Engen brands.
PETRONAS, the Malaysian state oil company, sold its 74% stake in Engen to Vivo Energy earlier this year, marking a significant shift in Africa’s energy distribution landscape.
“For us, it’s about consistently improving our offerings, whether through technology, service, or marketing. By doing so, we ensure that customers always receive value and quality, no matter the competitive landscape,” van Rensburg said.
Shell and Vivo Energy aim to maintain their competitive edge in Namibia and across Africa by prioritizing innovation, quality, and customer satisfaction.