FOR LUBRICANTS PROFESSIONALS
Building Competitive Lubricant Businesses in Africa
In this edition, Lubezine features Irfan Khan, Founder and Director of Business Development at GAUGE ENERGY, whose experience in finance, lubricants, blending, and market development offers practical perspectives on Africa’s evolving lubricants industry and future.
EXPERT INTERVIEW
Irfan Khan, Founder and Director of Business Development at GAUGE ENERGY
1 You have worked across accounting, finance and the lubricants industry for more than two decades. How has your understanding of the economics of the lubricant business changed as you moved from financial management into manufacturing, blending and business development?
I started my career in accounting and finance in the UAE, where I gained strong practical experience in financial management and business operations. When I moved into the East African market, I was able to transfer that knowledge by training and developing local staff in Kenya and Uganda, and eventually I was selected to continue my work in Tanzania. Being involved in management decisions throughout my career - including learning from both good decisions and mistakes - taught me to look beyond the numbers and understand the real business impact of costs, margins, risks, and future expectations. That experience became a strong foundation when I later moved deeper into lubricants manufacturing, blending, and business development.
2 Africa’s lubricant market continues to balance imported finished products with growing local and regional blending capacity. From your experience, what are the biggest barriers preventing African manufacturers from capturing a larger share of the market?
I see Africa’s lubricant market in three segments: premium, economical, and price-driven products. The biggest barrier is the lack of strong Pan-African investment in local lubricant brands, manufacturing, and regional supply chains, leaving significant value with imports and Middle Eastern suppliers. However, Africa is moving in the right direction, and the success of Dangote Refinery shows what is possible with the right investment and vision.
I see Africa’s lubricant market in three segments: premium, economical, and price-driven products. The biggest barrier is the lack of strong Pan-African investment in local lubricant brands, manufacturing, and regional supply chains, leaving significant value with imports and Middle Eastern suppliers.
3 What does it take to build a lubricant blending operation that can compete on quality, consistency and cost with established international brands?
It takes three things: access to higher-quality Group II/III base oils, stronger support from multinational additive companies for East African blenders, and strict quality standards for all imported products. Local manufacturers already face significant compliance and regulatory costs, so a level playing field is essential to compete on quality, consistency, and cost.
4 Base oil availability, pricing, freight costs and geopolitical disruptions have become increasingly important to lubricant producers. How are these factors changing the way African blenders should approach sourcing and inventory planning?
East African blenders are performing well despite these challenges, but our biggest limitation is the lack of local bulk storage for base oils and additives. Most raw materials still have to be imported, with base oils in flexi bags and additives in drums, making freight, finance, and supply planning critical. We therefore need better inventory planning and stronger regional storage infrastructure. I remain optimistic that investment in this area will bring positive changes soon.
5 Quality remains one of the biggest differentiatorsin a market where customers often compare lubricants primarily on price. How can African lubricant companies demonstrate product quality and build confidence among distributors, workshops, fleet operators and industrial users?
I agree that price and quality remain closely linked in the African lubricant market. East African countries face a natural disadvantage because we remain heavily dependent on imported crude oil and petroleum products. To build confidence, local lubricant companies must focus on consistent product quality, recognized specifications, proper testing, certification, and technical support. Demonstrating this transparency to distributors, workshops, fleets, and industrial users is essential to building long-term trust beyond price alone.
6 GAUGE ENERGY has positioned itself acrossautomotive, industrial, mining, marine and other specialised applications. How different are the lubricant requirements across these sectors, and what does that mean for companies trying to develop a broad African product portfolio?
GAUGE ENERGY was conceived in Dar es Salaam, Tanzania, in 2022 as a proudly 100% African-born and developed organization. We recognize that each sector - automotive, industrial, construction, mining, and marine - has distinct OEM specifications and performance requirements. Competing effectively across these segments requires disciplined product development, quality Group II and III base oils, proven additive technology, precise treat rates, and strong technical capability. Most importantly, we invest in training our local teams so they fully understand what they manufacture and the applications they serve.
We must recognize our responsibility to the planet and to future generations. Africa is still developing, and as responsible organizations and citizens, we must work with our communities to protect the continent we call home.
7 African lubricant markets are not uniform. What differences between countries should lubricant manufacturers and distributors understand before attempting to expand across East Africa and the wider continent?
East African markets are not fully uniform, but many share similar operating conditions and lubricant requirements. What is needed is greater alignment of regional quality standards and a more consistent regulatory framework. At the same time, local manufacturers have a responsibility beyond selling products - we must educate customers, workshops, and communities about correct lubricant selection and quality. Creating this awareness is essential for building a stronger and more responsible African lubricant industry.
8
Sustainability is increasingly influencing lubricant manufacturing and industrial maintenance.
Beyond marketing claims, where do you see the most practical opportunities for African lubricant companies to reduce waste, improve energy efficiency and extend equipment life?
We must recognize our responsibility to the planet and to future generations. Africa is still developing, and as responsible organizations and citizens, we must work with our communities to protect the continent we call home. In lubrication, the practical opportunities are through better product testing, correct lubricant selection, trained technical teams, and educating end users. Extending equipment life, reducing waste, and improving maintenance efficiency are responsibilities that local lubricant manufacturers must take seriously.
9 Digitalisation, oil analysis, condition monitoring and predictive maintenance are changing how lubricant performance is evaluated. How prepared is the African lubricant industry to move from selling products to providing more data-driven lubrication solutions?
To be honest, Africa still has a long way to go in adopting data-driven lubrication and predictive maintenance. However, I am optimistic. Local blenders, whether small or large, can accelerate this transition by working with experienced international and regional partners, learning from established blending operations, and investing in technical skills, oil analysis, and condition-monitoring capabilities.
10 Looking ahead five to ten years, what do you believe will determine which African lubricant companies become regional leaders: manufacturing capacity, technical capability, distribution networks, brand strength, sustainability, or something else?
Multinationals have a strong technical and operational foundation, and companies such as TotalEnergies remain important leaders. At the same time, we are seeing strong progress from regional players and new entrants from the UAE. I believe Africa has enormous potential. Over the next five to ten years, the companies that combine consistent quality, productive local manufacturing, strong distribution, and long-term investment in local communities will be the ones that build lasting regional leadership. .