Nigeria’s Sahara Group has supplied 67 million litres of diesel to Madagascar in a major energy deal aimed at supporting the country’s electricity supply.
The shipment was delivered to Toamasina, Madagascar’s main port, on August 12 aboard the tanker Sunda 1. The fuel was negotiated with Sahara Group, the Lagos-based energy company co-founded by Nigerian businessman Tope Shonubi. The entire shipment has been reserved for JIRAMA, Madagascar’s state-owned water and electricity utility.
The 67-million-litre shipment is expected to provide approximately six months of fuel requirements for JIRAMA’s power stations, giving the utility an important supply buffer as Madagascar continues to face challenges in maintaining reliable electricity generation.
The deal is also significant because it marks the first time in nearly three decades that the Malagasy state has directly purchased fuel from a foreign supplier rather than relying entirely on private distributors.
The change follows a new law passed by Madagascar’s National Assembly on July 1. The law transferred responsibility for importing fuel for JIRAMA to State Procurement of Madagascar (SPM), a government purchasing agency. The Constitutional Court approved the legislation on August 3, paving the way for the new system.
Previously, fuel imports were coordinated through the Groupement Pétrolier de Madagascar (GPM), an industry group involving four major private distributors: TotalEnergies, Vivo Energy, Galana and Jovena.
The government’s decision has created tensions with some of these private companies. Madagascar has only one major oil-storage facility at Toamasina, and the government requisitioned the Galana tank farm so that the Sunda 1 could unload its cargo.
Another tanker operated under the previous private-import system was reportedly left waiting offshore because of the limited storage capacity at the port. This raised concerns about possible disruptions to fuel supplies for ordinary consumers and businesses.
Madagascar’s government has defended the new arrangement, saying the fuel supplied by Sahara is specifically reserved for JIRAMA and will not be released into the commercial market.
The move comes at a difficult time for Madagascar’s energy sector. The country has experienced fuel shortages and problems with electricity generation, leaving JIRAMA vulnerable to running out of fuel for its power stations. The government has therefore been seeking ways to strengthen energy security and ensure a more stable electricity supply.
For Sahara Group, the deal further strengthens its presence in Africa’s energy market. The company operates across more than 40 countries and has interests spanning energy trading, power generation and distribution, infrastructure and other parts of the energy value chain.
The agreement also highlights growing South-South cooperation, with an African company supplying another African country with energy resources at a time when Madagascar is attempting to reduce vulnerabilities in its fuel-supply system.
Madagascar still faces challenges because the country depends heavily on imported petroleum products and has limited storage infrastructure. However, the new six-month supply for JIRAMA is expected to provide some relief to the power sector.
The development represents a major business opportunity for Sahara Group while giving Madagascar additional fuel security as authorities work to stabilise electricity generation.
