10 September 20126
Botswana is set to acquire a 30% stake in Angola’s Lobito Oil Refinery, in a move that could significantly deepen the country’s involvement in the regional energy sector and strengthen economic ties between the two Southern African economies.
President Duma Boko announced the proposed investment during the ongoing Botswana–Angola BiNational Commission in Luanda, outlining a shareholding structure that would see Botswana emerge as a major partner in the strategic refinery project.
Under the proposed arrangement, Botswana will hold a 30% stake, Zambia 26%, while Angola will retain the majority shareholding through its national oil company, Sonangol. The proposed investment positions Botswana alongside Angola and Zambia in a major regional energy project, potentially giving the country greater exposure to the oil value chain while strengthening cooperation on energy security, infrastructure, trade and investment.
The Lobito refinery is strategically important to the wider region because of its potential to increase petroleum-product supply capacity and reduce dependence on imported refined fuel from distant markets.
Botswana’s participation could therefore create opportunities for closer regional cooperation around fuel supply, logistics and energy infrastructure.
President Boko said the discussions with Angola had focused broadly on energy, infrastructure, trade and investment, with particular attention being paid to opportunities arising from the Lobito Corridor and the Lobito refinery. The Lobito Corridor, which connects Angola’s Atlantic port of Lobito to mineral-rich areas of the Democratic Republic of Congo and Zambia, has emerged as an important regional infrastructure and trade route.
Greater participation in the corridor could provide Botswana with opportunities to expand its commercial links beyond traditional markets and improve access to regional and international trade routes. Boko’s announcement comes as Botswana seeks to broaden its economic base and strengthen strategic partnerships across the continent.
The President described the engagements in Angola as a full day of diplomatic and economic activity, beginning with a meeting with Angolan President João Lourenço, followed by bilateral discussions and the signing of bilateral agreements. The Botswana delegation also toured Angola’s National Assembly before participating in the Botswana–Angola Business Forum, where opportunities for increased private-sector cooperation and investment were discussed.
Beyond energy, the two countries also reaffirmed their strategic relationship in the diamond industry. Botswana and Angola are among Africa’s significant diamond-producing countries, and Boko used the engagements to emphasise the importance of protecting the value and integrity of natural diamonds amid growing competition from laboratory-grown stones.
He stressed that natural diamonds possess a unique geological and cultural story, having formed naturally over billions of years, and argued that African diamond-producing countries must work together to preserve the value of their natural resources. The President said Africa should move beyond simply extracting and exporting raw resources and instead build stronger partnerships, increase local and regional value addition and assume greater ownership of its economic future.
For Botswana, the proposed 30% investment in the Lobito refinery represents a significant step into an area outside its traditional diamond-led economic model.
If concluded, the investment could provide the country with a strategic foothold in the regional petroleum industry while creating opportunities for cooperation in energy, logistics and infrastructure.
It also signals an increasingly integrated approach to Botswana’s foreign economic policy, with the country seeking partnerships that can support energy security, trade diversification, infrastructure development and greater participation in regional value chains. The proposed refinery investment will therefore be closely watched as Botswana and its partners work towards strengthening economic integration in Southern Africa.
Botswana and Angola sign deals, set up Bi-National Commission for 2027
Botswana and Angola have built on their first Joint Permanent Commission to sign new agreements that will strengthen bilateral co-operation across political, diplomatic, defence, security, and economic development fields.
The two countries plan to work more closely on politics, diplomacy, defence, security, and economic growth.
They will co-operate on many areas, including mining and diamonds, energy, farming and livestock, tourism, wildlife protection, and transport.
On security and justice, they will strengthen joint work on policing, border control, and fighting crime that crosses borders, including wildlife crime and diamond smuggling. The agreements also set out clear steps for putting these plans into action, tracking progress, and checking that commitments are kept. Both countries have agreed to set up a Botswana–Angola Bi-National Commission. Botswana will host the first meeting of this commission in 2027.
Sources: The Projects Magazine & BWgovernment
