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Namibia and Botswana are embarking on a historic energy collaboration, as both Southern African nations have formally agreed to develop a jointly-owned oil refinery. This strategic venture is set to significantly reduce their reliance on imported refined petroleum products and enhance regional energy security.
Strategic Purpose and Vision
The two land-linked nations have long grappled with the economic burden of importing refined fuels, primarily from South Africa and global markets. This dependence not only subjects them to fluctuating international prices but also limits their energy sovereignty. The new refinery initiative is a bold step toward reversing this trend.
According to a joint statement released by both governments, the refinery will process crude oil into various refined petroleum products such as petrol, diesel, kerosene, and jet fuel. These fuels are critical to powering industries, transportation, and households in both countries.
Proposed Capacity and Location
Although feasibility studies are ongoing, initial plans suggest the refinery will have a capacity ranging between 60,000 to 100,000 barrels per day (bpd). The proposed location is strategically being considered near the Namibia-Botswana border to ensure equitable logistics access and infrastructure connectivity.
Several sites, including locations near Walvis Bay in Namibia and Ghanzi in Botswana, are under assessment, with final decisions expected following the completion of the Environmental and Social Impact Assessment (ESIA) and stakeholder consultations.
Economic and Employment Impact
The refinery project is anticipated to stimulate significant economic growth. It will reduce the heavy costs of fuel imports and retain more value within the region. By establishing domestic refining capabilities, Namibia and Botswana can also improve trade balances and stabilize local fuel prices.
In addition, the construction and operation phases are expected to create thousands of jobs, from civil engineering and construction to skilled refinery operations and maintenance. The initiative aligns with both countries’ goals of boosting youth employment and fostering industrial development.
Regional Integration and Market Expansion
This joint refinery represents a landmark in regional integration under the Southern African Development Community (SADC) framework. Beyond Namibia and Botswana, neighboring landlocked countries such as Zimbabwe, Zambia, and even the Democratic Republic of Congo could benefit from a more stable regional source of refined petroleum.
Furthermore, the refinery has the potential to become a regional export hub, supporting broader energy diversification and economic cooperation in Southern Africa.
Sustainability and Environmental Considerations
Recognizing the global push toward sustainability, the project will incorporate modern refining technologies aimed at minimizing carbon emissions and environmental damage. Both governments have pledged to adhere to strict international environmental standards and consult with affected communities.
There is also a provision for integrating renewable energy sources into the refinery’s operations, reducing the overall carbon footprint and showcasing a forward-thinking energy model.
Funding and International Partnerships
The development will be funded through a mix of public-private partnerships (PPPs), bilateral agreements, and support from multilateral financial institutions. Initial funding discussions are underway with international investors and regional development banks such as the African Development Bank (AfDB) and the Development Bank of Southern Africa (DBSA).
Namibia and Botswana have also signaled openness to technical partnerships with experienced global oil and gas firms to ensure operational efficiency and knowledge transfer.
Outlook and Next Steps
This milestone agreement cements Namibia and Botswana’s commitment to long-term energy security, economic diversification, and regional cooperation. While still in the early stages, the oil refinery project marks a significant shift in the economic landscape of Southern Africa.
Feasibility reports and financing arrangements are expected to be finalized by the end of 2025, with ground-breaking scheduled for early 2026, pending approvals.
