Black industrialists are getting into the energy sector in full force to make their mark in a space previously dominated by white business.
And one of the many dabbling in this energy space is Nhlanhla Mkhize, 39, from Durban, KwaZulu-Natal. He is the founder and managing director of LVM Petroleum, headquartered in Sunninghill, north Johannesburg, and in Isipingo Hills in KZN.
“The energy sector plays a crucial role in the day to day running of all facets of our economy, in mining and logistics. Domestic households consume energy daily, making the energy value chain an appetising system to venture into.
“I come from a property management background I was running shopping centres in the townships.
“This is where I was exposed to the petroleum industry. I have undergone a retail fuel station readiness programme designed to prepare historically disadvantaged individuals for service station ownership,” he says.
Mkhize highlighted how difficult it was to get into the industry as there was red tape in getting a licence.
“Barrier to entry is a major obstacle for most SMMEs trying to get into the wholesale petroleum industry. One of the barriers is lack of resources and funding for up-and-coming non-refining wholesalers if there are no pipelines or off-takes. It was also not easy to obtain these off-takes when you didn’t have security of product supply. The only way of gaining entry and growth is by partnering with an already established non-refining wholesaler,” he says.
“The wholesale licence application process itself requires some upfront capital, where as a start-up business you might use services of a petroleum consultant who runs the application process on your behalf for a substantial fee.
“However, starting small while relying on more established wholesalers does the trick.”
Mkhize’s company has the capacity to service clients nationally, delivering fuel to various industrial sites for use in heavy-duty machinery.
“We aim to penetrate the oil and gas space, while promoting social responsibility, commitment to skills development, equal opportunity for all but more for the previously disenfranchised, especially black women, youth and
people living with disabilities.
“As LVM Petroleum, we aim to grow towards becoming a distributor for one of the major oil companies we work with by acquiring non-branded service stations and supplying fuel to operators in these areas,” says Mkhize.
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