Africa-Press – Botswana. In a move to strengthen cooperation in the energy sector, Botswana and Namibia are in talks to construct a jointly-owned oil refinery.
Aimed at boosting energy security and reducing reliance on imports, the initiative was a key part of Namibian President Netumbo Nandi-Ndaitwah’s recent working visit to Gaborone, where she met with President Duma Boko.
If successful, the project could mark a significant shift in Southern Africa’s energy landscape, signaling a move toward collaborative infrastructure development and economic self-reliance.
In 2023, Botswana imported $1.08 billion worth of refined petroleum, making it the country’s top import, with Botswana ranking 105th in the world among 226 importers. The majority of these imports came from South Africa ($773M), followed by Namibia ($242M), Mozambique ($59.4M), the UAE ($1.98M), and India ($1.96M), highlighting Botswana’s regional reliance on neighboring energy suppliers.
Refined petroleum also topped Namibia’s import list, valued at $1.52 billion, placing them 92nd among global importers. Key suppliers included: India ($395M), the UAE ($284M), Saudi Arabia ($206M), Oman ($163M), and Malaysia ($108M), underscoring Namibia’s reliance on foreign energy, particularly from Asia and the Middle East.
“We must remove all the trade barriers affecting the flow of trade. It is imperative that as a continent we focus on working together by engaging in measures that would necessitate free and smooth trade,” said Boko, adding he is aware of the discovery of gas and oil in Namibia and the prospects of establishing refineries.
Although details are still sketchy, with discussions at an infancy stage, the refinery will be based in Namibia, with a specific location yet to be announced. An estimated timeframe or cost has not yet been released either.
Oil drilling in Southern Africa is gradually gaining momentum as several countries in the region seek to tap into untapped hydrocarbon reserves to boost energy security and economic growth. Namibia, Mozambique, and South Africa have shown increasing interest in exploring and developing oil and gas fields offshore and onshore. Namibia, in particular, has attracted international oil companies to explore its Atlantic coast, where significant offshore deposits have been identified.
As key diamond producers in Africa, Botswana and Namibia are actively pursuing strategies to reduce their economic dependence on diamonds, a sector that has historically underpinned their national revenues. This shift is driven by declining global demand for natural diamonds, the rise of lab-grown alternatives, and the inherent risks of relying heavily on a single commodity.
In 2024, Debswana cut production by six million carats, ending the year at 17.9 million, while Namibia’s Debmarine plans a five percent reduction in 2025 after a 13 percent cut in 2024.
With their economies exposed to market volatility, both nations are prioritizing diversification and regional collaboration to ensure long-term stability.
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