In a bold move to redefine Southern Africa’s energy future, Namibia and Botswana have announced plans to construct a jointly-owned oil refinery marking a significant step toward economic diversification and energy independence for both nations.

The groundbreaking initiative was unveiled during Namibian President Netumbo Nandi-Ndaitwah’s recent working visit to Botswana, where she met with President Duma Boko to cement deeper energy cooperation between the two diamond-rich nations.

This planned refinery signals more than just a construction project; it represents a regional pivot toward self-sufficiency, job creation, and reduced dependence on costly petroleum imports. Both countries, historically reliant on diamonds, are grappling with falling global demand and the rise of lab-grown alternatives, pushing them to seek more sustainable economic models.

“The two leaders agreed that bridging the gap between the ‘haves and the have-nots’ and the fight against poverty through job creation required urgent and concrete programmes and projects to be implemented by both countries,” read a joint statement from the Namibian presidency.

For Namibia, refined petroleum topped its imports in 2023 at a staggering $1.52 billion, largely sourced from Asia and the Middle East. Botswana imported $1.08 billion worth, mainly from regional suppliers like South Africa and Namibia itself. These figures highlight a pressing need to localize energy production and ease the fiscal burden of foreign fuel dependence.

The refinery plan is also part of a broader regional trend as Southern African nations explore untapped oil and gas reserves. Namibia’s Atlantic coast, in particular, has drawn international oil majors, signaling a potential shift in the continent’s hydrocarbon map.

While details of the refinery’s scale and timeline are still under negotiation, the symbolism is clear: Botswana and Namibia are not just reacting to a changing global market, they’re actively reshaping their futures through regional integration and shared infrastructure.

As diamond production declines Botswana’s Debswana dropped output by 6 million carats in 2024, while Namibia’s Debmarine plans another 5% cut in 2025 the urgency to diversify has never been greater. The planned refinery could become a beacon of Southern African resilience and innovation in a transforming global economy.