By Koviao Matuzee
The proposed US$2.5 billion (approximately N$41 billion) Dangote Tank Farm and Regional Pipeline Project could reduce petroleum transportation costs, create employment opportunities and strengthen Namibia’s position as a regional fuel distribution hub, with a planned storage capacity of 600 million litres and a proposed 1,700-kilometre pipeline network.
The project, launched at Farm 58 in Walvis Bay on Wednesday, is expected to improve the movement of petroleum products to Namibia and neighbouring landlocked countries, potentially reducing dependence on road transportation and the associated costs of delivering fuel over long distances.
The proposed pipeline network will extend from Walvis Bay towards Otjiwarongo, with branches towards Rundu, Ghanzi and Francistown in Botswana.
The wider distribution network is intended to serve Botswana, Zambia, Zimbabwe, Malawi and the southern Democratic Republic of Congo.
For businesses, particularly those operating in transportation, mining, construction and logistics, the development presents opportunities through improved fuel supply reliability and potentially more efficient distribution routes.
Dangote Industries chairman and chief executive Aliko Dangote said the investment is intended to strengthen energy security, improve supply reliability and make petroleum products more affordable in Namibia and the wider region.
However, the company has not announced a specific reduction in fuel prices or quantified the expected savings per litre.
The potential benefits will depend on transportation costs, supply arrangements, regulatory requirements and how the savings are ultimately reflected in wholesale and retail fuel prices.
The project is also expected to generate employment and create business opportunities for Namibian contractors, transport operators, engineers, construction companies, professionals and small and medium-sized enterprises.
Dangote said the group intends to support skills development, local procurement and meaningful participation by host communities.
President Netumbo Nandi-Ndaitwah has also called for Namibians to receive employment priority, followed by other Africans.
Although the company has not disclosed the number of direct and indirect jobs expected during construction and operations, the scale of the proposed infrastructure presents opportunities across engineering, construction, petroleum handling, pipeline maintenance, warehousing and distribution.
The tank farm will occupy approximately 70 hectares and provide 600 million litres of storage capacity, comprising 360 million litres of diesel and 240 million litres of petrol. The facility will also include truck-loading, dispensing and associated distribution infrastructure.
The planned storage capacity is eight times the approximately 75-million-litre capacity of Namibia’s existing National Oil Storage Facility, significantly expanding the country’s potential petroleum storage infrastructure.
The proposed 1,700-kilometre pipeline is expected to strengthen Walvis Bay’s role as an Atlantic gateway for petroleum distribution into the Southern African hinterland, offering alternative supply routes to countries that depend on imported fuel.
Dangote said the investment forms part of a broader continental infrastructure strategy aimed at connecting production, storage and distribution facilities across African markets.
He also announced that the group’s African investment ambition has increased from US$50 billion to US$60 billion by 2030, equivalent to approximately N$983 billion at an indicative exchange rate of N$16.39 to the US dollar.
President Nandi-Ndaitwah has placed the project under direct presidential oversight until completion, saying Namibia cannot afford to lose major investment opportunities because of bureaucratic delays.
The project is expected to take approximately 18 to 20 months to complete, according to Dangote’s remarks reported by Reuters, although the proposed regional pipeline will still require detailed engineering studies, route surveys and regulatory approvals.
For Namibia, the investment represents an opportunity to expand petroleum storage, improve regional trade connectivity, attract supporting industries and increase participation by local businesses in major infrastructure developments.
