The planned acquisition of TotalEnergies Marketing Ethiopia by OLA Energy has run into a regulatory roadblock in Ethiopia, with competition authorities halting the deal over concerns that it could distort the domestic fuel retail market and concentrate too much power within a single entity.
The two international energy firms reached an agreement in Paris at the end of June 2026, under which OLA Energy—a pan-African fuel retailer backed by Libyan state investment institutions—would acquire TotalEnergies’ extensive downstream assets in Ethiopia. While financial terms of the buyout remain undisclosed, the transaction faces intense scrutiny from regulators who view the deal as far from a routine business transfer.
The Ethiopian Trade Competition and Consumer Protection Authority has temporarily suspended the approval process. Sources familiar with the matter revealed that regulators are alarmed by projections showing OLA Energy’s combined market share approaching nearly half of Ethiopia’s entire fuel retail sector.
If approved, the merged entity would eclipse the National Oil Company, which currently holds a dominant position in the market. Officials at the Ministry of Trade and Regional Integration confirmed that the pause aligns with the government’s legal mandate to evaluate market concentration risks.
Regulators are particularly concerned that creating such a massive market presence could expose Ethiopia to severe vulnerabilities in fuel distribution. A central fear is that any future operational hiccups, scaling back of services, or sudden exit by a dominant player could trigger widespread fuel shortages and destabilize national transport infrastructure.
Addressing the delay, Bekelech Kuma, communication director at the Ethiopian Petroleum and Energy Authority, explained that the business transfer and merger process between OLA Energy and TotalEnergies cannot be completed in a short period. She noted that it requires a detailed assessment and that the Ministry of Trade and Regional Integration has its own legal framework to evaluate whether the merger creates monopoly concerns or affects market competition.
Under Ethiopia’s Trade Competition and Consumer Protection Proclamation No. 813/2013 and Merger Guideline No. 1/2016, any acquisition exceeding statutory financial thresholds must undergo strict evaluation before completion. Authorities assess factors including overall market share, supplier concentration, barriers to entry, and potential long-term impacts on consumer pricing.
The key assets included in the proposed transaction span significant critical infrastructure. The deal encompasses more than 120 retail fuel stations in major urban centers, a 13,000-cubic-meter central storage terminal in Dukem, aviation fuel operations at Bole International Airport, digital payment systems, lubricant operations, and logistics networks.
The proposed transfer would mark the conclusion of TotalEnergies’ presence in Ethiopia spanning over seven decades. The French energy giant has operated continuously in the country since 1950. Its exit aligns with a strategic shift to restructure and adjust its retail portfolio across selected African markets.
For OLA Energy, formerly known as Tamoil prior to a 2018 rebranding, the transaction represents another ambitious move under the umbrella of the Libyan Africa Investment Portfolio—Libya’s sovereign wealth vehicle focused on African growth. Having posted a net profit of €34.5 million in 2024, OLA Energy already operates more than 1,350 service stations across 17 countries, often expanding by acquiring assets shed by global majors like Shell and ExxonMobil.
Following the agreement, OLA Energy Chairman Abozid Swalem voiced optimism, stating that the buyout reflects deep confidence in Ethiopia’s long-term economic prospects and energy market potential. The company has maintained that it will ensure a smooth operational transition, preserving commercial continuity and service stability.
However, the deal hits at a delicate moment. Ethiopia’s fuel supply chain has faced acute pressure in recent years, driven by foreign currency shortages, rising international import costs, and broader government efforts to modernize distribution and digital payment frameworks. With no firm timeline announced for a final ruling, the transaction remains on hold while authorities weigh market competition against foreign investment goals.
