How significant is the Ugandan market for MOGAS Group’s portfolio?

With a presence of over 30 years across East African countries such as Uganda, Kenya, Tanzania, Rwanda, Burundi, and the eastern Democratic Republic of Congo (DRC), MOGAS Group has expanded its footprint in the region. As a locally founded regional oil marketing company, Uganda holds great importance for MOGAS. The company’s retail network comprises 85 service stations across the region, with 32 of them located in Uganda. Additionally, MOGAS operates four regional depots, including one in Kampala, with a combined capacity of 52,500 cubic meters. The company’s premium-quality MOGAS branded oils, lubricants, and LPG products have gained popularity in the Ugandan market, making it a valuable market for MOGAS Group.

What developments has MOGAS Group witnessed in the past year?

The year 2020 presented unique and challenging circumstances for MOGAS Group, primarily due to the unprecedented impact of the Covid-19 pandemic and the decline in oil prices in March. These factors exposed the company to price risks and led to reduced business activity, especially in sectors severely affected by the pandemic, such as hospitality and aviation. However, with the gradual easing of mobility restrictions and the conclusion of elections in Burundi, Tanzania, and Uganda, MOGAS is witnessing a progressive recovery of demand for its products. International oil prices have also started to rise. To adapt to the challenging business environment, MOGAS Group has implemented leaner operations, remote work arrangements, online transactions, social media marketing, and expanded its online presence to improve operational efficiency and cater to changing customer preferences.

Has the pandemic era stimulated investment in digitalization for MOGAS Group?

Yes, the pandemic era has indeed stimulated increased investment in digitalization, particularly in payment platforms. MOGAS Group has embraced digital payment methods such as MTN MOMO Pay, which has gained popularity among motorists for purchasing products and services at points of sale (POS). Across its various lines of business, MOGAS leverages technology to enhance operational efficiency. The company is currently digitizing its POS systems and transitioning its business processes, such as sales order processing, to online platforms. This digitalization has enabled MOGAS employees to work remotely with minimal disruptions while effectively interacting with and serving customers through digital channels. The pandemic era has also accelerated the implementation of home delivery services for MOGAS LPG, which has gained significant popularity.

What opportunities does MOGAS Group see in the Albertine Graben E&P development and East African Crude Oil Pipeline (EACOP)?

The signing of key agreements by Ugandan President Yoweri Kaguta Museveni and Tanzanian President Samia Suluhu Hassan on April 11, 2021, marked the launch of the project works for the EACOP. This transnational crude oil pipeline, stretching 1,140 kilometers from Uganda’s Albertine region to the Tanzanian seaport of Tanga, is set to become the world’s longest heated pipeline upon completion, which is expected in the next four years. MOGAS Group anticipates increased business opportunities in the E&P development and EACOP projects. The announcement of the E&P FID (Final Investment Decision) is imminent, and MOGAS is optimistic about the positive impact it will have on the investment climate in Uganda and the East African Community as a whole. The projects will generate significant demand for local goods and services, promote human resource development, and drive capacity building for local companies. MOGAS looks forward to partnering with major contractors and subcontractors to fulfill their fuel and lubrication needs. Additionally, MOGAS already has an ultra-modern lubricating oils and blending plant in Tanzania’s port city of Tanga, where the EACOP terminates, ensuring reliable production and supply of MOGAS lubricants in the region.

What message does MOGAS Group have for global investors?

MOGAS Group encourages global investors to consider Africa, especially East Africa, as an attractive business destination. Uganda, with its rapidly growing economy, offers a compelling appeal to both local and foreign investors. The country’s ease of doing business, 24/7 services provided by the Uganda Investment Authority, robust physical infrastructure, skilled workforce, minimal market entry barriers, absence of foreign exchange controls and price controls, good security, and stable macroeconomic conditions create a favorable business environment. Moreover, Uganda has double taxation treaties with many countries, allowing for easy repatriation of dividends. In the oil sector, the forthcoming refinery will create additional opportunities for petrochemical industries. Even before that, numerous services will be required, including logistics, financial services, training, quality control, certification, and oil and hazardous waste management. Therefore, MOGAS Group encourages investors to seize the opportunities in East Africa, as the region is poised to become an economic powerhouse in sub-Saharan Africa.