Namibia could become a major fuel distribution gateway for southern Africa as Nigerian billionaire Aliko Dangote prepares to develop a 1.6 million-barrel storage facility at Walvis Bay, with plans for an extensive pipeline network connecting landlocked markets to the Atlantic coast.

The project, being developed by a Namibian unit of Dangote Industries, is expected to introduce new storage infrastructure for diesel and petrol at the country’s main commercial port.

The investment is estimated at $3.5 billion, although its final financing structure has yet to be disclosed.

President Netumbo Nandi-Ndaitwah is expected to attend the project’s launch ceremony, marking a significant step in Namibia’s efforts to strengthen its position in regional energy trade.

A coastal gateway for landlocked fuel markets

The facility’s strategic importance extends beyond Namibia’s domestic fuel market. A proposed pipeline network of more than 2,000 kilometres could eventually connect Walvis Bay to Botswana, Zimbabwe, Zambia and potentially the Democratic Republic of Congo.

Such infrastructure would give fuel suppliers access to a coastal storage and distribution point serving several countries that depend on imported petroleum products.

The initial development will include diesel and petrol storage tanks with a combined capacity of 1.6 million barrels, connected to the port’s jetty by a pipeline running approximately 16 kilometres inland.

The proposed regional network would significantly expand the project’s reach, although the timeline for construction and the final route have yet to be established.

The African Export-Import Bank, known as Afreximbank, has indicated that it could support financing for the development.

Fuel security becomes a bigger investment opportunity

The project comes as African economies face pressure from international fuel market disruptions, including the impact of the Iran war on energy supplies and prices.

For countries reliant on imported petroleum products, additional storage infrastructure could provide greater flexibility in managing supply disruptions and distributing fuel across borders.

Namibia’s location on the Atlantic coast gives Walvis Bay a potential advantage as a logistics centre for neighbouring economies.

The proposed pipelines could extend that advantage inland, creating a distribution network that reaches markets beyond the country’s borders.

However, the scale of the planned investment means financing, construction and the development of cross-border infrastructure will be critical to determining how quickly the project can deliver its regional ambitions.

Dangote expands his African energy footprint

The Namibia project forms part of Dangote’s wider push into Africa’s energy infrastructure market. His group operates Nigeria’s 700,000-barrel-per-day Dangote refinery, the continent’s largest, and is expanding the facility.

The billionaire has also announced plans for another refinery with a similar capacity in Kenya.

Forbes estimates Dangote’s fortune at $55 billion, built through a privately controlled industrial empire spanning several sectors.

The Walvis Bay development adds fuel storage and distribution infrastructure to that portfolio, positioning the group to participate in petroleum supply chains beyond its refining operations.

If the proposed regional pipeline network is completed, the project could establish a new route for moving imported and refined fuels into southern Africa’s inland markets.