August 27, 2025 [Further Africa]- Southern Africa is taking a bold step toward regional energy security.Namibia and Botswanahave officially launched afeasibility studyfor a proposed$4 billion joint oil refinery, signalling a strategic move to reduce dependence on fuel imports and harness growing oil and gas potential across the region.
While still in its early stages, the initiative reflects growing momentum inNamibia’s offshore oil sectorand both countries’ desire to build downstream refining capacity that matches their upstream ambitions.
The proposed refinery, which could cost betweenUS$3 billion and US$5 billion, is being explored jointly by the Namibian and Botswanan governments. The two nations are evaluating potential sites, withWalvis Bay in Namibiawidely viewed as the preferred location due to its deep-water port, established logistics infrastructure, and coastal access to export markets.
Ghanzi in Botswana, while also being considered in strategic discussions, is more likely to play a role as astorage and distribution hubrather than the refinery’s primary site. This regional configuration would allow Namibia to host processing operations while Botswana facilitates inland fuel transport and stockpiling.
The feasibility study comes at a time whenNamibia is attracting global attentionfollowing major oil discoveries in theOrange Basin, where TotalEnergies and Shell have led exploratory successes. These finds, although not yet in production, have set the stage for long-term infrastructure planning—including refining, storage, and pipeline capacity.
Botswana, a landlocked country, is especially dependent on imported refined fuels. For both nations, the prospect oflocal refining capacityoffers the promise ofenergy price stability, reduced supply chain risk, andvalue additionthrough local processing and employment generation.
However, experts caution that for the project to be economically viable, it must securelong-term offtake agreementsand achieve a minimum capacity of100,000 barrels per day (bpd)—substantially higher than current domestic demand. Namibia’s current consumption is around25,000 bpd, highlighting the need for a regional or export-oriented business model.
The refinery project reflects a broader trend across Africa, where countries are seeking to move up thehydrocarbon value chain. Instead of exporting crude oil and importing expensive refined products, governments are increasingly prioritisingintegrated infrastructurethat captures greater value domestically.
TheNamibia–Botswana oil refineryalso holds appeal for strategic partners and foreign investors seeking a foothold in a region with rising exploration success, stable governance, and a growing appetite for industrial development.
According toNamibia’s Ministry of Mines and Energy, the feasibility study will assess not only technical and financial feasibility, but also environmental impact, regional logistics, and policy alignment.
Though the project is still at an exploratory stage, thepolitical will,regional coordination, andmarket rationaleare clear. Should the refinery materialise, it would be the first of its kind jointly developed by two Southern African countries, and a potential blueprint for future cross-border energy ventures on the continent.
For Namibia and Botswana, this collaboration represents not only a response to external supply vulnerabilities but also a statement ofeconomic self-determinationin the evolving global energy landscape.
