Zimbabwe, Botswana and Zambia might quickly profit from considerably cheaper gasoline below a brand new regional provide plan being developed by the African Export-Import Financial institution in partnership with the Dangote Group.
The initiative centres on establishing a gasoline tank farm in Walvis Bay, which might act as a strategic distribution hub for petroleum merchandise throughout Southern Africa.
Gas to circulate quicker and cheaper?
The challenge is a part of a US$3 billion financing facility aimed toward boosting intra-African commerce in refined gasoline whereas lowering prices for land-linked nations.
In keeping with Afreximbank senior vice-president Denys Denya, refined petroleum could be shipped from Lagos, residence to the large Dangote Refinery, to Walvis Bay in below 5 days.
From there, gasoline could be distributed inland to nations corresponding to Zimbabwe, Botswana and Zambia, reducing reliance on longer, dearer import routes.
“That tank farm will allow nations corresponding to Botswana, Zimbabwe and Zambia to get their gasoline instantly from Namibia, which is cheaper,” Denya stated.
Logistics plan to help regional gasoline provide
To make the system work instantly, Afreximbank plans to roll out an preliminary fleet of about 550 gasoline tankers to move petroleum merchandise from Walvis Bay into neighbouring nations.
That is anticipated to bridge the hole whereas extra everlasting infrastructure is developed.
In the long term, the financial institution is engaged on plans to assemble pipelines linking Namibia to Zimbabwe and Zambia, a transfer that might additional drive down transport prices and stabilise gasoline provide within the area.
Dangote’s increasing footprint in Southern Africa
The initiative additionally builds on rising ties between Southern Africa and Nigerian billionaire Aliko Dangote, whose refinery is predicted to anchor the provision chain.
Throughout a go to to Zimbabwe final yr, Dangote signed offers price over US$1 billion throughout sectors together with power, cement and fertiliser.
“We’ll convey the product to Walvis Bay after which pipe it all the way down to southern Africa as nicely,” Dangote stated on the time, signalling a long-term imaginative and prescient to combine gasoline distribution throughout the area.
What it means for the area
If carried out, the Walvis Bay gasoline hub might reshape how Zimbabwe, Botswana and Zambia entry petroleum, lowering prices, enhancing provide reliability and strengthening regional commerce hyperlinks.
For economies typically affected by gasoline worth volatility and provide disruptions, the challenge provides a possible lifeline, although its full impression will depend upon how rapidly infrastructure plans transfer from talks to actuality.
