Vivo expands in African markets

TJIPENANDJAMBI KUHANGAVIVO Energy has expanded its retail network to eight countries in Africa, adding 230 new service stations.

Vivo Energy is a Royal Dutch Shell licensee that distributes and markets Shell-branded fuels and lubricants to retail and commercial customers in Africa.

The company has opened new opportunities in commercial fuels, mining and lubricant businesses. It has also expanded its position as the largest pan-African independent fuels and lubricants retailer by a wide margin. The expansion was as a result of Vivo Energy reaching an agreement on the acquisition and restructuring of Engen Holdings.

In a press statement issued by the company on Friday, Vivo Energy said Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe had been added to its list of markets, bringing the total in Africa to 23.

“The transaction comprises an issue of 63 million new shares and US$62 million in cash by Vivo Energy. The cash has been funded by a drawdown on Vivo Energy’s multi-currency facility,” read the statement.

Engen will hold roughly 5% shareholding in Vivo Energy.

The chief executive officer of Vivo Energy, Christian Chammas said the completed transaction opened a new important chapter for Vivo Energy as the company will be welcoming 300 employees, and also increase its target market to around 36% on the African continent.

During the first few years, they made investments to grow the business, which included increasing the service station network and adding new and refurbished convenience retail and quick service restaurants.

“We have an opportunity to replicate this successful business model to drive growth and profitability in our new markets,” Chammas said.

As a company, they are therefore determined to seize this in order to benefit all their customers, deliver value for the shareholders and move closer to achieving the ultimate goal of becoming Africa’s most respected energy business, the chief executive added.

Engen’s managing director, who is also its chief executive, Yusa’ Hassan, said they are excited to embark on this growth journey with Vivo Energy, and to add another strong and well-respected brand to the Vivo Energy group.

The Vivo Energy branch in Namibia was established in 2012. The company currently supplies to most mines in the country; has service stations in strategic locations; runs a nationwide depot network; and is considered one of the market’s leading fuel and lubricants suppliers.

The company has also created lasting social and economic benefits for the community, and has engaged with them to earn their respect and trust.

The key areas of community investment are road safety, education and the environment.