Nigerian businessman Aliko Dangote launched on Wednesday a $2.5 billion project to build fuel storage infrastructure and a regional pipeline at Walvis Bay, Namibia, in an initiative that could reshape Southern Africa's energy supply network by strengthening logistical capacity and reducing dependence on external markets.

The investment forms part of an expansion strategy by the group led by Dangote, widely regarded as Africa's wealthiest individual, who has been steadily deepening his presence in the continent's energy sector. The project comes against a backdrop of heavy African dependence on fuel imports and mounting pressure on international energy markets, compounded by the conflict in Iran.

Dangote currently operates Africa's largest refinery in Nigeria, with a processing capacity of 700,000 barrels of crude oil per day, a facility that is still expanding. The group also plans to build a second refinery in Kenya with an equivalent daily processing capacity of 700,000 barrels.

During the launch ceremony, which was attended by Namibia's President Netumbo Nandi-Ndaitwah, Dangote said completion of the project would reinforce the energy independence of six African countries. He added that the investment should help transform Walvis Bay into a regional fuel logistics and distribution hub. For Namibia specifically, the initiative could reduce logistical vulnerabilities and high maritime transport costs, while also driving the development of storage infrastructure.

The centrepiece of the project is a terminal with a storage capacity of approximately 600 million litres of fuel, equivalent to around four million barrels. Of that volume, 360 million litres will be allocated to diesel storage, with the remaining capacity reserved for petrol.

Speaking to journalists, Dangote said construction is expected to be completed within 18 to 20 months. Once operational, the new facility will have a storage capacity eight times greater than Namibia's current National Petroleum Reserve, which holds 75 million litres and is operated by state oil company Namcor.

Beyond the storage terminal, the project envisages the development of a pipeline stretching approximately 1,700 kilometres to connect Walvis Bay to landlocked countries across Southern Africa. Dangote said the infrastructure could serve markets including Botswana, Zimbabwe, and Zambia, with the prospect of a future extension to the Democratic Republic of Congo.

Gerrit van Rooyen, senior economist at Oxford Economics Africa, said the Namibia investment is part of a broader Dangote strategy to develop African distribution networks for refined fuels. In his assessment, the infrastructure will allow the group to open new commercial channels and expand its footprint in regional markets, linking refining capacity to the expansion of storage and transport systems.

Van Rooyen added that the strategy could also help the group diversify its export markets, reducing dependence in particular on European and East Asian destinations, where the transition to cleaner energy is expected to moderate long-term demand for refined fuels. In this context, the Walvis Bay investment represents a deliberate bet on African distribution networks, with the potential to deepen energy market integration across Southern Africa.