Botswana and Namibia Consider Joint Oil Refinery

Botswana and Namibia Consider Joint Oil Refinery. Botswana and Namibia are exploring the possibility of establishing a joint oil refinery to meet growing domestic fuel demands and enhance energy security within the Southern African Development Community (SADC).

This potential collaboration follows recent oil and gas discoveries in Namibia. During bilateral discussions, Botswana President Duma Boko and Namibia’s President Nandi-Ndaitwah agreed to initiate a feasibility study for the proposed refinery. According to an official statement from the Namibian Presidency, both countries emphasised the need for practical, collaborative projects that address economic inequality and promote job creation.

Botswana currently relies heavily on imported refined petroleum, sourcing primarily from South Africa, Namibia, Mozambique, and the United Arab Emirates. In 2023 alone, the country imported refined fuel worth $1.08 billion. Namibia’s refined petroleum imports during the same year amounted to $1.52 billion, sourced mainly from India, the UAE, Saudi Arabia, and South Africa.

For entrepreneurs in Botswana, especially those in logistics, fuel distribution, infrastructure, and industrial services, the proposed refinery presents a potential shift in supply chain dynamics. Local businesses could benefit from future opportunities in construction, maintenance, transport, and ancillary services if the project advances.

The move also complements ongoing national efforts to improve fuel infrastructure. In October 2024, Botswana Oil Limited completed the first phase of its Francistown Fuel Depot Expansion Project with the launch of the Road Loading and Offloading Gantry. When fully completed, the depot will hold a total capacity of 98 million litres, making it the country’s largest petroleum storage facility.

As energy demands grow and regional integration deepens, Botswana-based entrepreneurs are encouraged to monitor developments in this space and position themselves for potential participation in emerging supply chains.