Herman Thom of the NWU’s Small Business Advisory Bureau is the programme leader for the project. He says they have been appointed for a three-year period to implement a retail margin model, as well as to develop and implement a similar model for the oil industry in Botswana. 

“We firstly have to develop and implement the new model for Botswana’s wholesale fuel industry. This model will have to guide them in determining a fair profit margin.”

Herman says they will also be working with fuel retailers and fuel station owners in Botswana. This follows the work done three years ago to develop a model for the Botswana retail industry.

He says what makes him and his fellow consultant, William van der Merwe, especially excited about the mammoth task that lies ahead is knowing that they will make essential contributions towards keeping one of the biggest industries in Botswana economically viable.

“It will bring further stability to the Botswana fuel industry. It will also help to protect all the role-players and give guidelines to ensure that everyone in the industry receives fair compensation.”

Over the next three to four months, the two consultants will spend at least 70 nights in Botswana. They will travel from town to town doing research and investigations at 60 of the more than 200 fuel stations in Botswana.

Prof Tommy du Plessis, director of the NWU School of Business and Governance, says the school and the advisory bureau have extensive experience in this regard. “We have been doing fuel-related investigations since 1997 locally and in Namibia, Swaziland and Lesotho.”

In 2015, the advisory bureau's mandate for Namibia was expanded to include the modelling and determination of the wholesale margin of fuel for the oil industry in Namibia. This mandate has been extended to 2019.

“This is a great opportunity to promote the reputation of the NWU in Botswana. It is a wonderful marketing opportunity and a welcome cash injection for the NWU School of Business and Governance.”