By Zweli Martin Dlamini

MBABANE:TalaI AlRadwan, an international investor with alleged links to the multibillion Petroleum Group Of Kuwait Limited(IPG), is allegedly expressing interest in buying or taking over Galp Eswatini as the fuel company experiences deficit subsequent to increased tariffs imposed by the eSwatini Government on fuel imported outside the South African Customs Union(SACU).

A tariff is a tax imposed by a Government on imports or exports of goods and apart from being a source of revenue for the State, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage and/or safeguard domestic or regional trade.

It has been disclosed that,Galp International constructed a fuel Storage Facility in Mozambique with the hope that, countries that include eSwatini, Mozambique, Zimbabwe and Zambia among others, will purchase the fuel but, eSwatini subsequently imposed high tariffs with intent to encourage buying within the SACU market and/or countries to boost revenue.

An independent investigation conducted by this Swaziland News uncovered that,TalaI AlRadwan, the Kuwait investor with links to the multibillion Petroleum Group Of Kuwait Limited(IPG) was recently appointed by other shareholders as a Director of the Mozambique based Galp Fuel Storage Company that supplies Galp Eswatini with fuel.

But insiders within Galp International told this publication this week that, the Kuwait investor in his proposal suggested that, even though Galp Eswatini might be facing a deficit, IPG will find a way to generate revenue in Mozambique while making a loss in eSwatini.

“With the the multibillion Petroleum Group Of Kuwait Limited(IPG) now owning shares at the Mozambique Fuel Storage that supplies fuel to eSwatini, IPG is hoping to take over Galp Eswatini and continue supplying fuel to the country while paying the high tariffs to Government.If Galp Eswatini and the Mozambique Storage Company are jointly owned by IPG, that would mean the high tariffs paid to Government by Galp Eswatini will then be included in the costs of fuel supply. So even if Galp Eswatini could make a loss,IPG will generate profits in the Mozambique Storage Company that the Kuwait company co-owns with Galp International”, said an insider within Galp International.

Reached for comments by this Swaziland News on Friday afternoon, Bruno Marques, the Galp Eswatini Managing Director said, it was hard for him to confirm or deny whether the company was being sold because such discussions are held at the highest Board and international level.

“I may not be sure what evidence you have regarding this matter because you are a known news writer but, such discussions regarding the sale of an international company like Galp are held at Board and international level.Of course, we are an international company and sometimes Galp receives offers via the Stock Exchange. So it’s hard for me to confirm whether, there’s a new investor interested in taking over Galp Eswatini or not. But I’m available should you need further clarification”, said the Galp Eswatini Managing Director.

A questionnaire was sent to TalaI AlRadwan,the international investor with alleged links to the multibillion Petroleum Group Of Kuwait Limited(IPG), however, he had not responded at the time of compiling this report and, subsequent efforts to contact him through a direct call on his cellphone number proved unsuccessful.

But a brief research about the investor conducted by this publication suggests that, TalaI AlRadwan has been with the oil trading industry for almost ten(10) years now, operating the multibillion Petroleum Group Of Kuwait Limited(IPG) and recently, before the alleged engagements that might result to IPG buying Galp Eswatini, he was appointed the Director of the Mozambique Fuel Storage Company thus placing him at a very strategic position to understand and familiarize himself with the eSwatini fuel market and the trade intersection with Mozambique and neighboring countries.

Having successfully managed the Broad-Based Black Economic Empowerment(B-BBEE) arm of the Petroleum Group Of Kuwait Limited(IPG) in South Africa,TalaI AlRadwan subsequently captured the biggest market share out of Matola-Mozambique.

Efforts to reach eSwatini Finance Minister Neal Rijikernberg proved unsuccessful at the time of compiling this report.

But eSwatini, through the Minister of Finance increased tariffs not only on fuel imported from Mozambique but all goods purchased outside the SACU region and this, “includes import cars known as ‘Dubais”.

Even though this decision might have forced eSwatini citizens to buy cars from South Africa and other SACU countries, it decreased the market and/or demand for fuel as a majority of car dealers, some who originated from Asia closed and re-located to Mozambique, Botswana, Lesotho and other countries within the Southern African Development Community(SADC).

Eswatini has about 70% of the population living below the poverty line and the increased in import tariffs, resulted to some emaSwati struggling to afford cars and by extension, the fuel supply industry was affected.

But despite the new measures introduced by Finance Minister Neal Rijikernberg with intent to boost revenues, eSwatini SACU receipts declined from R13billion in the previous year to R10.4billion this year.

On another note, investors from Galp International and representatives from the Petroleum Group Of Kuwait Limited(IPG) are highly expected to arrive in the country this week to discuss among others, the alleged sale of Galp Eswatini in what insiders “describe as a highly confidential meeting”.