Botswana has entered early stage discussions with Angola over a potential equity participation in an oil refinery project, as part of broader efforts to strengthen regional energy cooperation and enhance fuel security.
Speaking before Parliament, Minister of Minerals and Energy Bogolo Kenewendo confirmed that Botswana has been offered up to a 30 percent stake in a refinery initiative under development in Angola. The discussions follow a recent high level visit by President Duma Boko to Luanda, where engagements were held with Angolan authorities and regional counterparts.
According to Kenewendo, the proposal remains under consideration, with technical and financial assessments still underway to determine the viability and strategic value of participation. She emphasised that the government is seeking a clear understanding of the scale, cost structure and long term benefits of the project before making any commitments.
Angola, one of sub Saharan Africa’s largest oil producers, has been investing in domestic refining capacity as part of efforts to reduce reliance on imported refined petroleum products. Projects such as the Cabinda refinery and the Lobito refinery expansion form part of a broader national strategy led by Sonangol, the state owned oil company. These developments are also viewed as having potential regional significance, particularly for landlocked Southern African countries that depend heavily on fuel imports.
Botswana currently sources most of its petroleum products through regional supply corridors linked to South Africa and Namibia. While supply has remained stable, authorities have acknowledged exposure to global price volatility and logistical disruptions, including those linked to geopolitical tensions affecting major shipping routes such as the Strait of Hormuz. The government has therefore been exploring options to diversify supply arrangements and build resilience into its energy system.
Kenewendo indicated that discussions with Angola extend beyond potential equity participation. Botswana has also engaged Sonangol on the possibility of aggregated fuel procurement, whereby Angola’s national oil company could include Botswana’s requirements within its bulk purchasing arrangements. Such a model, if implemented, could offer economies of scale and improved pricing stability.
Regional energy analysts have noted that closer cooperation between Southern African states in refining and procurement could contribute to greater energy sovereignty across the region. However, they caution that refinery investments are capital intensive and require careful alignment with long term demand projections, regulatory frameworks and infrastructure connectivity.
At this stage, both governments have characterised the engagement as exploratory. Further updates are expected as feasibility discussions progress and as Botswana evaluates how participation would align with its broader energy transition strategy and fiscal priorities.
The developments underscore a wider shift towards intra African collaboration in strategic sectors, as countries seek to leverage shared resources and capabilities in addressing common challenges related to energy access, affordability and resilience.
