Rising tensions around the Strait of Hormuz are pushing Botswana to pursue a stake in a multi-billion-dollar refinery project in Angola, as countries look to safeguard fuel supplies against potential global disruptions and future shocks.
With geopolitical friction between the United States and Iran escalating, nations are stepping up efforts to secure reliable energy sources through partnerships and strategic investments to shield their economies from instability.
Botswana is adjusting its strategy accordingly. As a landlocked country with no crude oil production, it depends entirely on imported refined fuels such as petrol, diesel, paraffin, and liquefied petroleum gas, much of which passes through South Africa.
To reduce this dependence, the country is considering investing in a refinery project in neighbouring Angola, marking a shift from its long-standing reliance on the diamond sector, which is beginning to show slower growth.
Botswana in discussions over Lobito refinery stake
Local reports indicate that Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, informed Parliament that the country has been offered up to a 30% share in an Angolan refinery project following President Duma Boko’s recent visit.
She explained that the delegation held meetings with both the Angolan and Namibian presidents, confirming that initial discussions have begun on Botswana’s potential participation in the refinery development.
Industry sources suggest the project is the Lobito Oil Refinery, a major facility being developed by Sonangol.
The refinery is projected to process about 200,000 barrels per day and is estimated to cost around $6 billion, although the final figure could increase depending on financing and construction factors.
Kenewendo stated that Angola has opened the opportunity for Botswana to acquire up to a 30% stake in the project.
She also emphasized that negotiations are still in the early stages, with ongoing assessments to fully understand the scope, costs, and long-term benefits to Botswana’s energy future.
Angola’s oil strength supports collaboration
Angola remains one of Africa’s top oil producers, with daily output estimated between 1.1 million and 1.2 million barrels. Much of this crude is exported to key markets such as China, India, and Europe.
Its national oil company, Sonangol, manages both upstream and downstream operations and is leading efforts to expand refining capacity through projects like Lobito.
Additional fuel supply plans under review
Kenewendo also revealed that Botswana is exploring fuel supply agreements with Sonangol.
She noted that discussions included the possibility of Botswana being incorporated into Sonangol’s fuel procurement arrangements when sourcing products for Angola.
According to her, talks on this potential arrangement are still ongoing, with further updates expected as negotiations continue.