Shell, operating through Vivo Energy Namibia, remains unshaken by competition in the country’s fuel market as plans to integrate Engen service stations into its network gain momentum.
Vivo Energy Namibia’s Managing Director, Jaco van Rensburg, explained that Shell’s focus lies on innovation and leveraging its competitive advantages in the regulated fuel market.
“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.
This comes after Chevron Brands International LLC’s recent partnership with Bachmus Oil to expand its presence in the country.
Chevron Brands International LLC signed a long-term retail trademark licensing agreement with Bachmus Oil and Fuel Supplies to launch Caltex fuel retail outlets in Namibia.
Meanwhile, Shell’s strategy includes enhancing its service offerings while avoiding unnecessary market saturation.
Van Rensburg clarified that, due to local competition regulations, there are no immediate plans for large-scale expansions in Namibia. However, Vivo Energy is pursuing growth opportunities across Africa.
“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 noted.
He said while managing 75 Shell stations and 58 Engen stations across Namibia, the immediate focus is on integrating and rebranding the Engen network.
Van Rensburg emphasised that this process is critical for the company’s strategy moving forward.
“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,” he said.
Shell and Vivo Energy continue to focus on innovation and service quality, capitalising on their established presence in Namibia and the broader African region.
According to van Rensburg, this approach ensures the company remains competitive despite the regulated nature of the market.
“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,” he said.
This comes as Engen and Vivo Energy merged their respective African businesses to create one of Africa’s largest energy distribution companies.
The combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries.
Engen is the clear market leader in South Africa and has around 1,300 service stations across seven African countries.
Vivo Energy is a major pan-African retailer and distributor of fuels and lubricants to retail and commercial customers, with over 2,600 service stations across 23 African countries, using the Engen and Shell brands.
PETRONAS sold its 74% shareholding in Engen to Vivo Energy at completion.
