Namibia is set to supply fuel to Botswana, Zimbabwe and Zambia at a cheaper rate.
This is as Nigerian billionaire Aliko Dangote last year announced plans to build a 2 000km fuel pipeline from Walvis Bay through Botswana to Bulawayo in Zimbabwe.
Dangote is working closely with the African Export and Import Bank (Afreximbank) to set up a US$3-billion (about N$49.6 billion) facility targeted at promoting intra-African trade in fuels and will establish a tank farm at Walvis Bay to transport fuel at a cheaper price.
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The bank's senior executive vice president, Denys Denya, says the tank farm will enable countries such as Botswana, Zimbabwe, and Zambia to get their fuel directly from Namibia, which is cheaper.
He was speaking at a virtual press briefing on Monday in response to the initiatives the bank needs to put in place to make sure Africa has more distribution of fuel across the continent, rather than depending on the Middle East.
"It takes less than five days to move refined products from Lagos (Nigeria) to the window. And then at the beginning, we are procuring about 550 tankers to move by road," he said.
The bank is also working on building a pipeline that will connect Zimbabwe to Zambia.
"We are also talking to Mutapa Investment Fund and other private sector players in Zimbabwe to increase the capacity of the Beira Masasa pipeline and then take that further to Zambia as well.
"So, all these initiatives are aimed at ensuring the supply is there and also reducing the cost of this product," Denya said.
In terms of the progress of the African Continental Free Trade Area, he said its success depends on all key players, including the private sector, governments, and institutions, playing their part.
Denya said the governments approved and ratified the agreement in record time.
"We play our part in supporting the secretariat both financially and in terms of human resources, and in advisory services to conclude the protocols that are going to govern intra-African trade. But there's a lot that still needs to be done to make it as effective as we want it.
"For example, the infrastructure deficit on the continent still presents challenges for intra-African trade. If you look at the ports, roads, and rail networks, there's still a lot to be done. Power on the continent to enable industrialisation and beneficiation to take place," he said.
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