Zimbabwe, Botswana and Zambia could soon benefit from significantly cheaper fuel under a new regional supply plan being developed by the African Export-Import Bank in partnership with the Dangote Group.
The initiative centres on establishing a fuel tank farm in Walvis Bay, which would act as a strategic distribution hub for petroleum products across Southern Africa.
Fuel to flow faster and cheaper?
The project is part of a US$3 billion financing facility aimed at boosting intra-African trade in refined fuel while reducing costs for land-linked countries.
According to Afreximbank senior vice-president Denys Denya, refined petroleum would be shipped from Lagos, home to the massive Dangote Refinery, to Walvis Bay in under five days.
From there, fuel would be distributed inland to countries such as Zimbabwe, Botswana and Zambia, cutting reliance on longer, more expensive import routes.
“That tank farm will enable countries such as Botswana, Zimbabwe and Zambia to get their fuel directly from Namibia, which is cheaper,” Denya said.
Logistics plan to support regional fuel supply
To make the system work 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 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 expanding footprint 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.
“We will bring the product to Walvis Bay and then pipe it down to southern Africa as well,” Dangote said at the time, signalling a long-term vision to integrate fuel distribution across the region.
What it means for the region
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, though its full impact will depend on how quickly infrastructure plans move from talks to reality.
