Southern Africa is set to welcome a new oil refinery, the result of a strategic partnership between the governments of Namibia and Botswana.
The proposed facility is part of broader efforts to deepen regional cooperation in the energy sector and reduce dependence on imported petroleum products.
According to The Namibian, the initiative was a key topic during Namibian President Netumbo Nandi-Ndaitwah’s recent working visit to Gaborone, where she held talks with Botswana’s President Duma Boko.
The leaders discussed establishing a jointly-owned refinery that would enhance energy security, promote infrastructure development, and reduce the region’s reliance on fuel imports.
In a statement from the Namibian presidency, the two leaders agreed that addressing poverty and inequality through job creation and economic empowerment required “urgent and concrete programmes and projects to be implemented by both countries.”
Moving Beyond Diamonds
Namibia and Botswana are among Africa’s top diamond producers. However, both countries are now shifting focus toward economic diversification in response to declining global demand for natural diamonds and increased competition from lab-grown alternatives.
“As diamond-producing countries, Nandi-Ndaitwah and Boko directed sector officials to work together to maximize revenue and value from diamonds in both countries,” the statement read.
In 2024, Botswana’s Debswana reduced production by 6 million carats to 17.9 million, while Namibia’s Debmarine is planning a 5% production cut in 2025 following a 13% reduction in 2024.
These figures highlight the growing need to diversify away from diamond dependency and build resilience against commodity price volatility.
Namibia and Botswana currently rely heavily on imported refined petroleum. In 2023, Namibia’s petroleum imports reached $1.52 billion—its largest import category.
Key suppliers included India ($395 million), the UAE ($284 million), Saudi Arabia ($206 million), Oman ($163 million), and Malaysia ($108 million).
Botswana imported $1.08 billion in refined petroleum the same year, mainly from South Africa ($773 million), followed by Namibia ($242 million), Mozambique ($59.4 million), the UAE ($1.98 million), and India ($1.96 million).
A jointly-developed refinery could reduce both countries’ dependence on these external suppliers, lower fuel costs, and contribute to energy independence.
Southern Africa is witnessing increased interest in oil exploration and production. Namibia, South Africa, and Mozambique are actively pursuing offshore and onshore hydrocarbon development to improve energy security and stimulate economic growth.
Namibia, in particular, has become a hotspot for international oil companies exploring the Atlantic coast, where promising offshore oil discoveries have been made.
The planned Namibia-Botswana refinery signals a new chapter in Southern Africa’s energy landscape—one that prioritizes regional integration, economic diversification, and long-term stability.
