Dangote Begins Construction of $2.5 Billion Fuel Storage in Namibia After Kenya Refinery

• Dangote has launched a $2.5 billion fuel storage and pipeline project in Namibia to strengthen fuel supply across Southern Africa
• Planned for Walvis Bay, the terminal will store 600 million litres, with a 1,700-kilometre pipeline linking neighbouring countries
• The investment expands Dangote’s African energy network, alongside plans for a 700,000-barrel-per-day refinery in Kenya

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Africa’s richest man, Aliko Dangote, has launched a $2.5 billion fuel storage and regional pipeline project in Namibia, marking another major expansion of his energy investments across Africa.

The project, unveiled on Wednesday in Walvis Bay, is expected to strengthen fuel distribution across Southern Africa and reduce the region’s dependence on costly and vulnerable supply routes.

The development follows Dangote’s announcement of plans to construct a $16 billion refinery in Kenya, as the Nigerian industrialist seeks to establish a stronger presence in Africa’s energy market.

Dangote Targets Six African Countries

Speaking at the launch ceremony attended by Namibian President Nandi-Ndaitwah, Dangote said the project would improve energy security across six African countries.

He explained that the investment would position Walvis Bay as a major regional fuel logistics hub while reducing transportation costs and supply disruptions.

According to him, Namibia stands to benefit from improved fuel availability, lower logistical risks and expanded infrastructure.

The project comes as African economies grapple with volatile international oil prices and supply uncertainties linked to geopolitical tensions in the Middle East, Reuters reported.

New facility to store 600 million litres

The proposed fuel terminal will have a storage capacity of approximately 600 million litres, equivalent to nearly four million barrels.

Of this volume, 360 million litres will be reserved for diesel, while the remaining 240 million litres will accommodate petrol.

The facility will be eight times larger than Namibia’s existing 75 million-litre National Oil Storage Facility, operated by the country's national oil company, Namcor.

Dangote disclosed that construction would take approximately 18 to 20 months.

The development also includes provisions for a 1,700-kilometre pipeline connecting Namibia to neighbouring countries, including Botswana, Zimbabwe, Zambia and potentially the Democratic Republic of Congo.

Kenya Refinery expands Dangote's African ambitions

The Namibian investment adds to Dangote’s growing portfolio of energy projects across the continent.

His refinery in Lagos, Nigeria, currently has a stated capacity of 700,000 barrels per day, with further expansion planned.

The businessman has also announced plans for another 700,000-barrel-per-day refinery in Kenya, strengthening his ambition to develop an integrated African fuel supply network.

Expert explains Dangote's expansion strategy

Gerrit van Rooyen, a senior economist at Oxford Economics Africa, described the Namibian project as part of Dangote’s broader strategy to establish distribution networks for refined petroleum products.

He said the expansion would help diversify Dangote’s export markets and reduce dependence on Europe and East Asia, where the transition towards cleaner energy could weaken long-term fuel demand.

For Nigeria, the investment could also create additional regional markets for refined petroleum products, although actual export volumes will depend on future supply arrangements and infrastructure completion.

Dangote pan-African pipeline firm

Legit.ng earlier reported that Africa's richest man, Aliko Dangote, has announced plans to establish an extensive petroleum distribution network across Africa following the acquisition of a 25 per cent stake in a Kenyan pipeline network, marking another significant expansion of his energy business beyond Nigeria.

The President and Chief Executive of Dangote Industries Limited disclosed that the conglomerate is pursuing major investments in petroleum pipelines, storage facilities and distribution corridors across East, Central and Southern Africa.