Sakunda Holdings Biography
Sakunda Holdings is a privately owned Zimbabwean company operating primarily within the commodities sector.
| Legal Name | Sakunda Holdings Private Limited |
|---|---|
| Year Founded | 2005 (21 Years Ago) |
| Type | Private |
| Headquarters | Harare, Zimbabwe |
| Subsidiaries |
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| Key People | Kuda Tagwirei (Founder & CEO) |
Background
Sakunda Holdings was established in 2005 by Kudakwashe Tagwirei, a businessman in the commodities sector who holds majority ownership. It is a privately owned Zimbabwean company primarily operating in the commodities industry and is headquartered in Harare, Zimbabwe.
In May 2014, the Dutch commodities company Trafigura acquired a stake in Sakunda Energy through Puma Energy Africa Holdings, its South African subsidiary. This transaction resulted in the creation of Sakunda Supplies, also known as Trafigura Zimbabwe, which became a subsidiary of Sakunda Holdings. Under this arrangement, Sakunda owned 51% of the entity, while Puma held the remaining 49%. The primary objective of this deal was to facilitate the refurbishment of the Feruka-Harare Pipeline.
Operations and Subsidiaries
Sakunda Holdings engages in energy, logistics, and trading operations within Zimbabwe. The company operates through three distinct divisions:
- Sakunda Energy: This division manages the retail and commercial supply of fuel to government entities, parastatals, and corporate clients. It operates and franchises petrol filling stations across Zimbabwe and distributes commercial fuel products to the mining, transport, agriculture, and industrial sectors.
- Sakunda Trading: This subsidiary is responsible for procuring and importing bulk fuels, including diesel, petrol, renewable biofuel, and kerosene. It supplies these fuels to markets in Zimbabwe, Zambia, and Malawi, and acts as a wholesaler to other oil companies and bulk buyers. The division also trades in agricultural products and minerals.
- Sakunda Logistics: This division oversees the physical movement and delivery of fuel from the point of importation to the end consumer.
Through these operations, Sakunda Holdings maintains a virtual monopoly over fuel distribution in Zimbabwe. The company also distributes chemicals and lubricants domestically.
Key Projects and Government Partnerships
The Dema Power Plant
In January 2016, the Zimbabwean government approved Sakunda's acquisition of a 200-megawatt emergency diesel power plant at the Dema substation to address a national power crisis caused by diminishing water levels at the Kariba Dam. Sakunda had no prior experience in power generation. Reports indicated that the original winner of the contract, APR Energy Holdings, was sidelined in favor of Sakunda following intervention from the President's Office. Sakunda sub-contracted Aggreko, a British multinational that had initially lost the bid to APR, to provide the necessary equipment and technical expertise.
The Dema project produced electricity at a cost of 15.04c/kWh, which was significantly more expensive than alternative local and imported power sources. As part of the arrangement, Sakunda was responsible for providing fuel for the plant and received a special concession allowing it to import this fuel duty-free.
Command Agriculture
Sakunda Holdings was a major partner and the largest conduit of government funding for Zimbabwe's Command Agriculture program. The company received $366 million in government bonds as payment for supplying inputs to the agricultural initiative.
Healthcare and Infrastructure Initiatives
In March 2020, Sakunda received a license to revive two idled private hospitals in Harare—St Anne’s hospital and Rock Foundation Medical Centre—to support the government's response to the coronavirus pandemic. This development occurred following public criticism regarding reports that certain healthcare facilities were being reserved for the elite.
In a separate infrastructure project, Sakunda Holdings had entered an agreement with the Harare City Council to refurbish Rufaro Stadium in Mbare. However, in November 2022, the company withdrew from the partnership, citing malicious and untruthful allegations originating from the local authority.
Controversies and Sanctions
Money Laundering Investigation
In September 2019, the Financial Intelligence Unit of the Reserve Bank of Zimbabwe (RBZ) instructed local financial institutions to freeze the bank accounts of Sakunda Holdings as part of a money-laundering investigation. This action followed warnings from the International Monetary Fund (IMF) that the government's payouts to Sakunda for the Command Agriculture program were negatively impacting the economy and accelerating the deterioration of the local currency. The payouts were reportedly financed by printing money, and Sakunda's redemption of government bonds led to an 80 percent surge in Zimbabwe's monetary base. Despite the account freeze and ongoing investigation, Sakunda continued to distribute inputs for the Command Agriculture program the following month using its CBZ bank accounts.
United States Sanctions
On August 5, 2020, the United States added Sakunda Holdings and its founder, Kudakwashe Tagwirei, to its sanctions list. The designation was implemented due to the company's support for programs run by the Emmerson Mnangagwa-led government, which the US authorities viewed as contributing to human rights abuses in Zimbabwe.