Botswana negotiates fuel deal with Dangote
By the AFREEQUE newsroom, based on Business Day Nigeria
Botswana is negotiating a refined fuel supply agreement with Dangote to reduce shortage risks and diversify imports. Mines and Energy Minister Bogolo Kenewendo says the government is also speaking with suppliers in Angola and Ivory Coast, according to Bloomberg.
Botswana is negotiating a fuel supply agreement with Aliko Dangote, founder of Nigerian group Dangote, to diversify its imports of refined petroleum products, Bogolo Kenewendo, Botswana’s Minister of Minerals and Energy, said in an interview with Bloomberg. The country is also discussing supplies with providers in Angola and Ivory Coast to reduce the risk of shortages linked to disruptions in global energy markets.
Botswana imports all of its refined fuels and remains exposed to international price fluctuations as well as disruptions to maritime and regional routes. The government has already diversified its routes through Mozambique and Namibia, but it still needs sufficient coastal storage capacity in both countries to make these corridors fully operational.
An agreement has been reached with Oman: OQ Trading delivered its first consignment of diesel to Botswana on 9 October via the port of Matola in Mozambique. Gaborone is also examining a connection to a pipeline project led by Dangote, which is intended to link Namibia with landlocked markets and other regional economies.
The project is part of a programme in which Dangote is investing more than $3.5 billion in a 2,650-kilometre network linking Namibia, Botswana and South Africa. The Nigerian group is seeking to develop, beyond refining, the transport and storage infrastructure needed to distribute fuel in Africa.
