Zimbabwe is set to benefit from a major US$3 billion African Export-Import Bank (Afreximbank) initiative designed to strengthen intra-African fuel trade and...
Zimbabwe is set to benefit from a major US$3 billion African Export-Import Bank (Afreximbank) initiative designed to strengthen intra-African fuel trade and reduce the continent’s dependence on distant overseas suppliers.
Speaking during a media briefing, Afreximbank Senior Executive Vice President Denys Denya said the bank was partnering with Nigeria’s Dangote Refinery to establish a strategic fuel storage facility at Walvis Bay. The project is expected to improve fuel access for Zimbabwe, Zambia and Botswana, with shipments taking less than five days from Lagos.
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Mr Denya said the bank was also procuring around 550 fuel tankers to support road deliveries across the region, while exploring the construction of a pipeline linking Zimbabwe and Zambia.
For Zimbabwe, another key development is Afreximbank’s discussions with Mutapa Investment Fund and private sector stakeholders to increase capacity on the existing Beira–Msasa Pipeline and potentially extend it northwards into Zambia.
The pipeline currently serves as Zimbabwe’s main fuel import route, carrying the bulk of petroleum products from Beira Port through Feruka and onward to Msasa. It remains the cheapest and most efficient transport option compared to road haulage.
Earlier this year, Mutapa chief executive Dr John Mangudya said Zimbabwe planned to expand annual pipeline throughput from three billion litres to five billion litres. The upgrade is intended to support rising fuel demand from the mining, agriculture and industrial sectors.
By increasing monthly handling capacity to about 400 million litres, the project is expected to reduce freight costs, ease pressure on roads caused by tanker traffic, and improve national energy security.
Although the Beira pipeline remains central to imports, Zimbabwe still relies heavily on trucks for inland distribution due to rail bottlenecks and ageing logistics systems. Analysts say reducing road dependence could significantly lower costs.
Investment analyst Walter Mandeya said the combined effect of the Walvis Bay fuel hub and pipeline expansion could reshape Zimbabwe’s fuel supply chain.
“If these projects are delivered on schedule, Zimbabwe could see fuel landing costs fall by between 15 and 20 percent within the next 18 months,” he said.
Mr Denya added that Afreximbank was financing multiple refinery projects across Africa as part of a broader push for self-sufficiency in refined petroleum products and fertiliser production.
“We have the crude oil in Africa. The goal now is to refine it here, retain value locally and strengthen supply security,” he said.
