Natalie Nyathi
Nigeria’s Dangote Petroleum Refinery is making a move to expand its influence in the African energy market by establishing a large-scale fuel storage facility in Namibia. The refinery, owned by Africa’s richest man, Aliko Dangote, plans to construct storage tanks in Walvis Bay, Namibia, capable of holding at least 1.6 million barrels of gasoline and diesel. This strategic initiative aims to supply refined fuel to Southern African nations, potentially reshaping regional energy trade flows and improving access to petroleum products in the area.
The $20 billion Dangote Refinery, which commenced operations in 2024, is the largest in Africa, boasting a refining capacity of 650,000 barrels per day. This capacity surpasses the combined output of the ten largest refineries in Europe. The refinery currently produces aviation fuel, diesel, gasoline, and naphtha.
The new storage tanks in Namibia are strategically located to serve Botswana, Zambia, Zimbabwe, and Namibia, with the possibility of extending supply to the southern Democratic Republic of Congo. A Namibian Ports Authority official has confirmed the plans, noting that the tanks will be housed within the Walvis Bay harbor. Walvis Bay is a key logistics hub on Namibia’s Atlantic coast, making it an ideal location for distributing fuel to landlocked countries in the region.
This expansion comes as Zimbabwe grapples with periodic fuel shortages and relies on imports from distant markets. The Dangote refinery’s Namibian storage facility could lead to faster and more cost-effective fuel deliveries to Zimbabwe, potentially stabilizing local prices. A senior energy ministry official, speaking anonymously, suggested that consistent supply deals with Dangote could significantly ease Zimbabwe’s fuel procurement challenges.
The Dangote Refinery’s move into Southern Africa follows its recent entry into the Asian market, with its first gasoline cargo being shipped to Asia. Once operating at full capacity, the refinery is projected to meet Nigeria’s domestic fuel demand and export surplus to regional and global markets. This would significantly reduce Africa’s dependency on fuel imports and establish Nigeria as a key hub for refined petroleum products.
While the exact cost of the Namibian project remains undisclosed, construction is expected to begin soon, with the facility potentially operational within the next two years.