Nigerian billionaire industrialist Aliko Dangote has launched a $2.5 billion fuel storage and regional pipeline project in Namibia, marking a significant expansion of his energy business into Southern Africa and positioning the country as a potential regional petroleum distribution hub.
The project was officially launched on Wednesday, November 4, 2026, in Walvis Bay, at a ceremony attended by Namibian President Netumbo Nandi-Ndaitwah. It is expected to strengthen fuel supply security, reduce transportation costs and improve access to refined petroleum products across several African countries.
The investment comprises a large-scale fuel storage terminal with a capacity of approximately 600 million litres, equivalent to about four million barrels. Of this capacity, 360 million litres will be dedicated to diesel storage, while the remaining 240 million litres will accommodate petrol.
Dangote said the project would help address Namibia’s logistical challenges, high shipping costs and energy insecurity while establishing the necessary infrastructure to support regional fuel distribution.
The facility is expected to be completed within 18 to 20 months, according to statements made by Dangote at the launch.
Once operational, the storage terminal will have approximately eight times the capacity of Namibia’s existing 75-million-litre National Oil Storage Facility, significantly increasing the country’s ability to receive, store and distribute petroleum products.
Regional pipeline to connect landlocked countries
A major component of the investment is a proposed 1,700-kilometre pipeline network designed to transport refined petroleum products from Walvis Bay into neighbouring countries.
The proposed infrastructure could connect Namibia with Botswana, Zimbabwe and Zambia, with a possible extension to the Democratic Republic of Congo (DRC).
The pipeline would provide landlocked countries with an alternative route for accessing fuel supplies, potentially reducing their dependence on longer and more expensive shipping routes and existing distribution networks.
Dangote said the wider project could strengthen the energy independence of six African countries while establishing Walvis Bay as an important logistics and fuel distribution centre for the region.
However, the final pipeline route and its overall length will depend on engineering assessments, route surveys and regulatory approvals.
Part of Dangote’s wider African expansion
The Namibian investment forms part of Dangote’s broader strategy to expand his petroleum production, storage and distribution operations across Africa.
He currently operates the Dangote Petroleum Refinery in Nigeria, which has a capacity of 700,000 barrels per day, making it Africa’s largest refinery. The facility is also undergoing expansion as the industrialist seeks to increase its production capacity and reach additional markets.
Dangote is also pursuing plans to establish another 700,000-barrel-per-day refinery in Kenya, extending his energy investments to East Africa.
The Namibia project could provide an important distribution platform for refined petroleum products from his Nigerian operations, opening up additional markets across Southern Africa.
For Namibia and its neighbours, the investment presents an opportunity to improve fuel supply infrastructure, strengthen regional trade links and reduce exposure to disruptions in international petroleum supply chains.
As African economies continue to grapple with fuel price volatility and dependence on imported petroleum products, the development could become an important addition to the continent’s energy infrastructure.
Nevertheless, the project’s long-term impact will depend on its timely completion, the development of the proposed pipeline connections and the commercial arrangements governing fuel distribution across participating countries.