Dangote unveils $2.5bn Namibia fuel storage, pipeline project

The President of Dangote Group, Aliko Dangote on Wednesday launched a $2.5 billion fuel storage and regional pipeline project in Walvis Bay, Namibia, in a move expected to transform fuel supply and distribution across Southern Africa.

The project, unveiled at a ceremony attended by Namibian President Netumbo Nandi-Ndaitwah, is designed to position Walvis Bay as a major petroleum logistics hub while improving energy security for several countries in the region.

Speaking at the event, Dangote said the project would help reduce shipping costs, strengthen fuel supply chains and support economic growth across Southern Africa.

According to him, the infrastructure will enhance energy independence for six African countries while addressing logistical bottlenecks that have contributed to fuel shortages and high distribution costs.

The development will feature a storage terminal with a capacity of 600 million litres – about four million barrels – including 360 million litres of diesel and 240 million litres of petrol.

Dangote said construction is expected to be completed within 18 to 20 months.

He added that the terminal would be linked to a proposed 1,700-kilometre pipeline extending to Botswana, Zimbabwe, Zambia and potentially the Democratic Republic of Congo, creating one of the largest fuel distribution corridors in Southern Africa.

The storage facility will significantly expand Namibia’s fuel reserves, with a capacity roughly eight times larger than the country’s existing 75 million-litre National Oil Storage Facility operated by Namcor.

The Namibia project is the latest in Dangote’s drive to expand his footprint in Africa’s downstream oil sector.

Dangote’s 700,000-barrel-per-day refinery in Lagos remains the largest in Africa, while plans are underway to double refining capacity through expansion and construct another 700,000-barrel-per-day refinery in Kenya.

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Analysts say the latest investment is expected to strengthen Dangote’s position in Africa’s petroleum market while providing a strategic outlet for refined products from his Nigerian refinery.

Senior economist at Oxford Economics Africa, Gerrit van Rooyen, said the project would also enable Dangote to diversify export destinations as demand for refined petroleum products is projected to weaken in Europe and parts of Asia due to the global transition to cleaner energy.

Rooyen noted that the fuel hub would improve regional distribution networks and reinforce Africa’s drive towards greater energy self-sufficiency.