Nigerian industrialist Aliko Dangote has launched a US$2.5 billion fuel storage and regional pipeline project in Namibia, in a major investment expected to strengthen petroleum distribution and expand trade links across Southern Africa.
Namibian President Netumbo Nandi-Ndaitwah joined Dangote, chairman and chief executive of Dangote Group, at the launch ceremony on Wednesday, November 4, at Farm 58 near the coastal town of Walvis Bay.
The project includes a petroleum storage facility with a planned capacity of 600 million liters, comprising 360 million liters of diesel and 240 million liters of petrol. It also includes plans for a regional pipeline network extending approximately 1,700 kilometers inland from Walvis Bay towards markets in neighboring countries.
According to Dangote, the proposed network is intended to connect Namibia with Botswana, Zambia, Zimbabwe, Malawi and the southern Democratic Republic of Congo. The final route and length will depend on detailed engineering studies, route surveys and regulatory approvals.
The investment is expected to position Walvis Bay as an important entry and distribution point for petroleum products serving countries across the region, including landlocked markets that depend on transport corridors to access imported fuel.
For Namibia, the project could significantly expand existing fuel storage capacity. The planned 600-million-liter facility is approximately eight times the capacity of the country’s existing 75-million-liter National Oil Storage Facility.
Dangote said the infrastructure would help reduce shipping and distribution costs, while improving energy security and reducing logistical vulnerabilities. He also expects the development to support fuel supply beyond Namibia, creating a wider commercial network for petroleum products across Southern Africa.
The project is part of Dangote Group’s broader expansion beyond Nigeria, where the company operates a major refinery with a capacity of about 700,000 barrels per day. The group has increasingly pursued investments in storage, pipelines and distribution infrastructure as it seeks to move refined petroleum products into more African markets.
The Namibian government has also attached significant importance to the investment. During the launch, Nandi-Ndaitwah said the project would remain under the direct oversight of her office until completion, a measure intended to prevent administrative delays from slowing its implementation.
The president said Namibia could not afford to lose major investments because of bureaucratic obstacles, particularly as the country seeks to create jobs, reduce poverty and expand its industrial capacity.
Beyond fuel storage and transportation, the development is expected to create opportunities for construction companies, local suppliers, logistics operators and other businesses. The government has also presented the project as an opportunity to strengthen skills development and increase local participation in major infrastructure investments.
However, the launch marks the beginning of a major development rather than the start of operations. Dangote told Reuters that completion of the facility and associated infrastructure is expected to take approximately 18 to 20 months.
If delivered as planned, the project could change how petroleum products move through parts of Southern Africa. Walvis Bay would gain a larger role in supplying inland markets, while the proposed pipeline could offer an alternative to the long-distance road transportation currently used to move fuel across several countries.
The scale of the investment also reflects growing competition to develop energy and transport infrastructure across Africa. For Dangote, the Namibian project provides an opportunity to extend the reach of his petroleum business into Southern Africa.
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