Technocrats weigh gov’t equity in Angolan refinery
Mbongeni Mguni | Monday July 31, 2023 06:00
BusinessWeek has established that senior officials from the ministry are scheduled to visit the coastal country soon for an on-the-ground appreciation of the project, as part of assessing the offer to invest.
Botswana consumes approximately 100 million litres of various fuels each month and receives nearly all of its supplies from South Africa. However, the regional giant is suffering a rapid loss in refining capacity with several major plants suspended or ageing out of use.
The latest developments come after high-level private and official talks between President Mokgweetsi Masisi and his Angolan counterpart, João Lourenço last week, during the latter’s visit to the country.
“This will assist us in terms of sources of fuel as well as diversifying our supply routes,” an official told BusinessWeek. “Most of our oil is through South Africa now, but now that country is also a net importer.”
According to available reports, Zambia has already taken up equity in the Lopito project, although the quantum of shareholding is unclear.
Speaking in Gaborone last week, Lourenço said the invitation for Botswana to pump equity into the coastal refinery was part of ensuring that regional neighbours share key infrastructure.
“Zambia has already shown interest and we have just invited Botswana to do the same,” he told journalists at a briefing. “Botswana has responded positively and in principle, we will be counting on Botswana as a shareholder of the Lopito refinery. “Regional integration has to take place through infrastructure sharing and there’s no need for everyone to build hydropower stations or refineries provided there are infrastructure sharing policies among the countries of our region.”
Commenting on the matter during a banquet held in Lourenço’s honour, Masisi said petroleum products and supply were one of the priority areas for cooperation between the two governments. He added that the cooperation would flow beyond governments and into partnerships with the private sector.
“We held frank and fruitful discussions both during our private and official talks aimed at advancing our bilateral relations and cooperation. “We immediately instructed our ministers and officials to do more and push the envelope to advance our mutually beneficial bilateral cooperation in various sectors where we have demonstrated sustainable comparative advantages such as mining, agriculture, tourism, petroleum energy, wildlife, water and trade,” he said.
Masisi said sectors such as petroleum products lend themselves well to value addition, adding that both countries had agreed to intensify efforts towards signing memorandum of agreements or understanding for collaboration.
“We need to form partnerships with our private sectors to help us achieve our development programmes,” he said.
Speaking to state television, Foreign Affairs minister, Lemogang Kwape, said ministers from both countries had been tasked to work on areas of agreement quickly.
“They refine oil and their President has invited the President to invest in one of the refineries,” he said. “This will help us get fuel supplies easier and perhaps at cheaper prices. “In terms of prices, Angola has one of the lowest in the region.”
As part of efforts to strengthen the stability of the country’s oil supplies, Botswana Oil is establishing fuel storage facilities at Mozambican and Namibian ports, which will double the country's strategic oil reserves and provide a buffer against declining refining capacity in South Africa.