Economy

Zambia explores strategic partnership with Dangote Refinery to strengthen fuel security

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The Zambian government has begun discussions with Dangote Refinery of Nigeria for a potential strategic partnership aimed at enhancing petroleum security.

Energy Minister Makozo Chikote held high-level talks with the Nigerian petroleum giant in that country as part of Zambia’s commitment to ensuring fuel security, competitive pricing, and stable supply.

The meeting sought to explore cooperation opportunities while gaining firsthand insights into the impact of Africa’s largest refinery and its vision for the continent’s energy independence, according to a statement from Ministry Principal Public Relations Officer, Bob Sianjalika.

Aliko Dangote, President of Dangote Industries Limited, highlighted the refinery’s massive capacity, which can produce 650,000 barrels per day, making it Africa’s largest.

He noted that the refinery was designed to meet all of Nigeria’s energy needs and serve the broader African market under the African Continental Free Trade Area (AfCFTA) framework.

Minister Chikote reiterated the Zambian government’s commitment to enhancing fuel affordability and energy security.

He stated that Zambia currently relies entirely on private-sector petroleum imports and expressed the need for diversification.

“Given Zambia’s landlocked status, we import fuel through regional ports like Dar es Salaam, Beira, and Walvis Bay. A partnership with Dangote Refinery would provide alternative supply routes, reduce costs, and ensure fuel stability,” Chikote said.

The Minister further stressed that Africa must leverage intra-continental investments to reduce dependence on overseas markets, highlighting that investments like Dangote’s are essential for building a self-sufficient energy sector.

Read More: ERB estimates average daily consumption of petrol in Zambia at 1.6 million litres, dismisses fear of fuel crisis

Chikote also expressed hope that the Dangote refinery could address Zambia’s energy challenges and contribute to lowering fuel prices to foster economic growth.

“The Zambian government is actively seeking partnerships to reduce fuel costs and improve strategic fuel reserves,” he added.

Chikote pointed out that exploring alternative supply routes, such as Walvis Bay in Namibia, which has a 70,000-metric-ton storage facility, would bolster Zambia’s energy security by expanding its fuel reserves. The two-day transit time from Lagos to Walvis Bay would further enhance the supply chain.

Chikote was accompanied in Nigeria by Energy Regulation Board Chairman James Banda, Presidential Delivery Unit (PDU) Delivery Manager-Projects Cuthbert Munankwenka, and Ministry of Energy Acting Director of Petroleum Florence Kambikambi.

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