Zimbabwe, Botswana, and Zambia are poised to benefit from significantly cheaper fuel thanks to a new regional supply plan being developed by the African Export-Import Bank in partnership with the Dangote Group. This initiative aims to establish a fuel tank farm in Walvis Bay, which will act as a strategic distribution hub for petroleum products across Southern Africa.
Regional Fuel Supply Set to Get a Boost
The project is part of a US$3 billion financing facility that seeks to boost intra-African trade in refined fuel, reducing costs for land-linked countries in the process. According to Afreximbank senior vice-president Denys Denya, refined petroleum will be shipped from Lagos, home to the massive Dangote Refinery, to Walvis Bay in under five days. This will enable countries such as Botswana, Zimbabwe, and Zambia to get their fuel directly from Namibia, which is cheaper, Denya explained.
Denya noted that the tank farm will enable these countries to access fuel at a lower cost, saying, “That tank farm will enable countries such as Botswana, Zimbabwe and Zambia to get their fuel directly from Namibia, which is cheaper.” From Walvis Bay, fuel will be distributed inland to these countries, cutting reliance on longer, more expensive import routes.
Logistics and Infrastructure Plans
To ensure the system works immediately, Afreximbank plans to roll out an initial fleet of about 550 fuel tankers to transport petroleum products from Walvis Bay into neighbouring countries. This move is expected to bridge the gap while more permanent infrastructure is developed. In the longer term, the bank is working on plans to construct pipelines linking Namibia to Zimbabwe and Zambia, a move that could further drive down transport costs and stabilise fuel supply in the region.
Dangote’s Growing Presence in Southern Africa
The initiative also builds on growing ties between Southern Africa and Nigerian billionaire Aliko Dangote, whose refinery is expected to anchor the supply chain. During a visit to Zimbabwe last year, Dangote signed deals worth over US$1 billion across sectors including energy, cement, and fertiliser. At the time, he signalled a long-term vision to integrate fuel distribution across the region, saying, “We will bring the product to Walvis Bay and then pipe it down to southern Africa as well.”
Regional Implications
If implemented, the Walvis Bay fuel hub could reshape how Zimbabwe, Botswana, and Zambia access petroleum, reducing costs, improving supply reliability, and strengthening regional trade links. For economies often affected by fuel price volatility and supply disruptions, the project offers a potential lifeline. However, the full impact will depend on how quickly infrastructure plans move from talks to reality. For more information, you can visit the Afreximbank website.
