ZERA moves to rein in fuel sector chaos

SAMANTHA MADE AND KUDAKWASHE CHIBVURI

The Zimbabwe Energy Regulatory Authority (ZERA) is drafting new legislation to control the licensing and siting of fuel service stations, following a dramatic surge of stations cropping up side by side across Harare.

The move comes amid allegations of corruption, political interference, and opaque municipal approvals that have sparked public outrage over safety, environmental, and urban planning risks.

ZERA CEO Edington Mazambani told Business Times, a market leader in business, financial, and economic reportage, that the legislation will stipulate minimum distances between service stations and ensure that ZERA is consulted at the start of the licensing process, rather than after local authorities and the Environmental Management Agency (EMA) have granted approvals.

“We are working on legislation which will stipulate the distances between service stations and bring ZERA into the process at the very beginning,” Mazambani said.

He added that the municipality itself had initiated a moratorium while a study on the mushrooming of fuel sites is underway.
“Municipality of Harare is the one which put a moratorium on issuing permits for new sites while a study on the mushrooming of fuel sites is being done,” Mazambani said.

The regulatory intervention follows revelations by Business Times exposing “widespread conflicts and corruption at Town House,” the city’s administrative headquarters, in the issuance of fuel station licenses.

Harare Mayor Jacob Mafume confirmed that the council has placed a moratorium on issuing new development permits for service stations and housing.
“As the Harare City Council, we are working on a moratorium on planning issues, which has halted the continued issuance of development permits for service stations and housing. The moratorium originated from the Ministry of Local Government,” Mafume told Business Times.

Mafume has also publicly criticized council officials for their “recklessness and endangerment of lives,” warning that the unchecked proliferation of service stations in residential areas has heightened safety and environmental risks.

Residents and environmentalists have voiced alarm over the rapid growth of fuel stations, accusing both the city council and regulatory bodies of corruption. Critics say approvals were granted through opaque processes involving EMA, ZERA, and political actors, allowing multiple stations to be built on corners in residential neighborhoods.

Environmentalists question the rationale behind such “risky developments,” suspecting that corruption influenced the approvals. The issue has also been flagged by the Commission of Inquiry appointed by President Emmerson Mnangagwa to investigate suspicions of financial mismanagement within the city.

Last year, Councillor Takudzwa Dzumbunu, chairperson of the council’s Environmental Committee, testified before the commission that the planning process for service stations was opaque, noting that property owners were exploiting loopholes by changing land use designations. Investigations by Business Times confirmed that proper processes were not adequately followed, fueling allegations of corruption.

Mafume reiterated that council has halted licensing of service stations and plans to engage EMA and ZERA.

Acting Director of Town Planning Samuel Nyabeza defended the decisions.
“We consult experts and neighbors, and decisions are made with full council endorsement,” Nyabeza said.

With both regulatory and municipal interventions now in motion, Harare may finally begin to stem the uncontrolled proliferation of service stations, which has raised serious safety, environmental, and governance concerns.