Namibia is set to launch the Dangote Namibia Tank Farm and Regional Pipeline Project, a significant investment aimed at enhancing the country's fuel security. The project, located at Farm 58 outside Walvis Bay, is expected to provide a new route for fuel supply, potentially reducing the country's dependence on imported petroleum products. President Netumbo Nandi-Ndaitwah will officially launch the project, which comes as motorists face another fuel price increase. The launch is seen as a crucial step towards addressing Namibia's fuel security challenges.
The fuel price increase, effective Wednesday, 4 November, sees petrol rising by N$2 per litre and diesel by N$3. Petrol 95 at Walvis Bay will now cost N$28.58, Diesel 50ppm N$30.86, and Diesel 10ppm N$30.96. The Minister of Industries, Mines and Energy, Modestus Amutse, attributes the increase to a 40% rise in shipping costs and a 64% increase in vessel waiting costs, alongside exchange-rate pressures. These factors highlight the growing cost of transporting, receiving, storing, and distributing imported fuel.
Dangote's interest in Namibia dates back to his meeting with President Nandi-Ndaitwah at State House in Windhoek on 19 June 2025. The engagement explored potential investment opportunities in Namibia, with Dangote highlighting his group's presence in more than 12 African countries and its 650,000-barrel-per-day Nigerian refinery. The Walvis Bay project is expected to include a petroleum storage facility with a capacity for at least 1.6 million barrels of petrol and diesel.
The proposed infrastructure is part of a larger regional ambition, with Dangote outlining a network of approximately 2,500 to 2,650 kilometres, estimated to cost more than US$3.5 billion, linking Namibia through Botswana towards South Africa, with another corridor through Zimbabwe and Zambia to the Democratic Republic of Congo. For Namibia, the commercial opportunity extends beyond domestic supply, with a regional distribution hub potentially generating storage revenue, pipeline tariffs, port activity, and demand for logistics services.
However, whether the Dangote pipeline can lower fuel prices remains uncertain, as infrastructure does not automatically translate into cheaper fuel. International product prices, exchange rates, insurance, financing, operating expenses, and supply contracts will continue to influence landed costs. There is also a distinction between launching the project and completing it, with the Farm 58 environmental process involving land subdivision, while construction of the storage facility requires further environmental approval.
Namibia is also considering an alternative investment opportunity in Angola's Lobito refinery, following an invitation from President João Lourenço during Nandi-Ndaitwah's state visit in October 2026. The refinery, being developed by state-owned Sonangol, is designed to process 200,000 barrels of crude oil daily, with Angola indicating that shareholder countries could receive priority access to refined products.
The two opportunities offer different commercial propositions, with Dangote's model centring on storage, distribution, and regional fuel trading, while Lobito offers potential equity participation in refining capacity. Ultimately, the test is whether these investments deliver more reliable supply at a lower total cost, while providing value for public money and strengthening Namibia's long-term energy security. The National Energy Fund faces further pressure from fuel under-recoveries, with the government expecting to spend approximately N$384 million covering October's shortfall.
Key points
- The Dangote pipeline project aims to enhance Namibia's fuel security by providing a new route for fuel supply.
- The project is part of a larger regional ambition, with a proposed network of approximately 2,500 to 2,650 kilometres.
- Whether the Dangote pipeline can lower fuel prices remains uncertain, as various factors will influence landed costs.
