Impact of the Zambian Government’s Liberalized Bulk Petroleum Products Procurement Policy on Service Efficiency and Effectiveness: A Case Study of the Ministry of Energy

Abstract

The study assessed how Zambian Government’s Liberalized Bulk Petroleum Products Procurement Policy affected service efficiency and effectiveness through the Ministry of Energy as a government agent in Lusaka, Zambia. It focused on important factors like efficiency, cost-effectiveness, and service quality while examining the policy itself along with competition and transparency. In carrying out this examination, the following objectives were set; to assess the efficiency of procurement processes under the Liberalized Bulk Petroleum Products Procurement Policy, focusing on factors such as transparency, timeliness, and cost-effectiveness, to examine the extent to which liberalization has facilitated perfect competition among suppliers in the bulk petroleum industry in Zambia, and to analyse the effects of government’s procurement liberalization policy on quality of service and value. To gather comprehensive insights, the researcher conducted in-depth interviews with 10 senior managers from key organizations in Zambia's petroleum sector. Alongside this qualitative approach, the researcher distributed questionnaires to 49 Oil Marketing Companies (OMCs) to gather quantitative perspectives with 44 being returned representing 89.8%. The sampling technique used was non-probability purposive sampling for qualitative data, and for quantitative data involving OMCs (Oil Marketing Companies), simple random sampling was used. The thematic analysis helped in interpreting the qualitative data, while SPSS supported statistical analysis of the quantitative findings. The research revealed that while the policy led to some improvements in transparency, achieving full transparency across procurement processes remained challenging. Competition among suppliers became more diverse post-liberalization, but achieving perfect competition proved difficult, affecting both cost-effectiveness and service quality in various ways. After liberalization, there was an observation of mixed outcomes in service quality and value, with concerns particularly around adherence to standards and the reliability of supplies. In conclusion, the study highlighted the complex impacts of Zambia's liberalization policy on its petroleum sector. In recommendation, it emphasizes the need to strengthen transparency, streamline operations, and implement effective cost management strategies to maintain positive procurement outcomes and enhance service effectiveness. These insights are vital for shaping future policy reforms aimed at fostering a more competitive, efficient, and effective procurement environment in Zambia's petroleum industry.