Botswana seeks Dangote fuel supply deal to guard against Iran war shocks

Botswana has opened talks with Aliko Dangote’s refinery for a fuel supply agreement as it moves to diversify petroleum sources and protect itself from disruptions linked to the Iran war. The country’s Minister of Minerals and Energy, Bogolo Kenewendo, said Botswana was also engaging other African suppliers to strengthen fuel security.

Botswana is landlocked and imports all its refined petroleum products. It has no proven crude oil reserves or refineries, leaving it exposed to international price increases and disruptions along regional supply routes.

Gaborone lines up African suppliers

Kenewendo, speaking in an interview with Bloomberg in Gaborone, said Botswana had engaged Dangote, Angola and Cote d’Ivoire to ensure they can supply the country. “Because we are clear that we never want to have any fuel insecurity, we’ve engaged Dangote, we’ve engaged Angola, we’ve engaged Cote d’Ivoire to ensure that they can supply us,” she said.

Botswana has also diversified its routes to Mozambique and Namibia. Kenewendo said those routes need good coastal storage facilities in both areas to work properly. “We have diversified our routes to Mozambique and to Namibia, and in order for those routes to work properly, we need to have good storage facilities, coastal storage facilities, in both areas,” she added.

The country has already secured a supply arrangement with Oman. OQ Trading delivered Botswana’s first diesel shipment through Mozambique’s Port of Matola on October 9. The government is also exploring supplies through a proposed pipeline that Dangote plans to develop from a terminal at Namibia’s Walvis Bay port through southern Africa. Kenewendo said the alternative corridors would require adequate coastal storage to support distribution and cut reliance on traditional routes through South Africa.

Dangote refinery widens African footprint

Botswana’s move comes as Dangote Refinery expands its presence in African petroleum markets while still supplying Nigeria’s domestic fuel needs. The Lagos-based refinery has drawn growing interest from African governments looking to diversify refined product sources after the Iran war disrupted crude shipments and raised global energy prices.

In March 2026, international traders lifted 12 cargoes containing 456,000 tonnes of refined petroleum products from the refinery for markets including Ivory Coast, Cameroon, Tanzania, Ghana and Togo. Earlier that month, supply inquiries increased from African governments, including South Africa, as countries sought alternatives to fuel supplies affected by the conflict. In December 2024, the refinery said it had exported petrol to Cameroon, Angola, Ghana and South Africa, alongside diesel and aviation fuel shipments to European markets.

African governments tighten fuel security

Other African countries are also taking steps to protect domestic fuel availability as global energy prices remain under pressure. In October 2026, Niger banned petrol and diesel exports to prioritise domestic consumption, although specially authorised exports of surplus supplies by SONIDEP and SORAZ remain permitted. A September 2026 United Nations Development Programme policy brief said global fossil-fuel subsidies could exceed $1 trillion in 2026 as governments absorb part of the energy-price shock.

In Nigeria, Dangote Group’s H1 2026 Macroeconomic Report said the refinery supplied about 50 million litres of petrol daily to the domestic market in the first half of 2026 while expanding exports. The increase in domestic refining has helped Nigeria reduce dependence on imported petroleum products, even as other African countries seek new supply arrangements to protect their markets from disruptions.

For Nigerian businesses, the Botswana talks signal a wider African market for Dangote Refinery’s output. For consumers, stronger regional demand could support refinery utilisation, but the fuel security push across Africa also shows how vulnerable import-dependent economies remain to global shocks.