TAZAMA Pipelines Delivers Record Dividend to Zambian Government
On Thursday, TAZAMA Pipelines Limited handed the Zambian government a dividend check worth K120.4 million (approximately US$6.69 million). The payment follows the company’s strongest financial performance to date for the fiscal year ended 31 December 2025. The ceremony took place at the Ministry of Finance and National Planning, where Acting Finance Minister Mwaka Mukubesa accepted the check on behalf of the state.
Leadership Highlights the Dividend’s Significance
Professor Ephraim Munshifwa, Chairman of the TAZAMA Board, presented the dividend and described it as more than a routine corporate obligation. He characterised the payout as proof that a strategically managed state‑owned enterprise can generate shareholder value while contributing meaningfully to national development.
According to Prof. Munshifwa, the dividend reflects TAZAMA’s solid financial results, rigorous corporate governance, and continued commitment to Zambia’s energy security and broader economic aspirations.
Financial Highlights for FY 2025
The company reported a net profit of K722.3 million in 2025, up from K635.6 million the previous year—a 13.6 percent increase. Throughput reached a historic high of 1,006,995 tons of petroleum products, compared with 747,186 tons in 2024, representing a 34.7 percent rise in volume transported along the Dar es Salaam‑Ndola corridor.
These figures underscore a period of sustained growth and operational improvement for the joint venture, which is equally owned by the governments of Zambia and Tanzania.
Strategic Initiatives Driving Performance
Prof. Munshifwa attributed the strong results to several interconnected factors:
- Higher throughput volumes that maximised pipeline utilisation.
- Enhanced operational efficiency through process optimisation.
- Targeted investments in pipeline safety infrastructure, reducing incident risk.
- Improved plant uptime, ensuring reliable service for downstream customers.
- Successful rollout of the Open Access Policy, which broadened market participation.
- Introduction of a Drag Reducing Agent (DRA) that lowered friction losses and boosted flow rates.
Together, these measures not only lifted financial returns but also reinforced TAZAMA’s role as a dependable conduit for fuel supplies across the region.
Government Response and Wider Implications
Acting Finance Minister Mwaka Mukubesa welcomed the dividend, noting that the inflow would strengthen public finances and support the government’s ability to fund national development priorities such as infrastructure, health, and education.
She praised the TAZAMA board and management for their prudent leadership and urged other state‑owned enterprises to emulate the company’s blend of operational discipline and innovative thinking.
Ms. Mukubesa also highlighted the Open Access Policy and DRA implementation as concrete examples of how sound management, technological adoption, and a focus on sustainability can translate into measurable performance gains.
Looking Ahead
TAZAMA’s leadership indicated that the momentum achieved in 2025 will inform future investment plans, including further safety upgrades, capacity expansion studies, and continued pursuit of efficiency‑enhancing technologies. Stakeholders expect the joint venture to maintain its trajectory of delivering both financial returns and strategic value to Zambia and Tanzania.
