Namibia and Botswana are collaborating on the development of a jointly-owned oil refinery to reduce dependence on imported refined petroleum products.
Strategic Energy Collaboration
The proposed refinery project was a central topic during Namibian President Netumbo Nandi-Ndaitwah’s recent visit to Gaborone, where she met with Botswana’s President Duma Boko.
The leaders agreed on the necessity of concrete programs to bridge economic disparities and create employment opportunities through such joint ventures.
President Nandi-Ndaitwah emphasized that Namibia’s recent oil and gas discoveries should benefit the broader region, stating, “Now that Namibia has oil and gas, we can not claim this to be a Namibian resource. It’s a resource in our region. It’s a resource in the neighborhood, and we can all benefit from it.”
Economic Imperatives
Both nations have historically relied heavily on diamond exports. However, declining global demand and the rise of synthetic alternatives have prompted a strategic pivot towards energy diversification.
In 2023, Namibia imported approximately $1.52 billion worth of refined petroleum, while Botswana’s imports totaled around $1.08 billion, making refined petroleum the top import for both countries.
The joint refinery is envisioned to not only reduce these substantial import bills but also to position Namibia and Botswana as key players in the regional energy market, supplying refined petroleum products to neighboring countries.
Project Scope and Considerations
While specific details regarding the refinery’s capacity and timeline are still under discussion, the project is estimated to require an investment of approximately $4 billion. Feasibility studies are slated for completion in 2025, with considerations including funding mechanisms, environmental impact assessments, and logistical frameworks.
Industry experts have noted the challenges associated with establishing a refinery in a relatively small market. However, President Boko highlighted that the project’s viability increases when considering the combined populations and energy needs of the Southern African region.
