12 Nov 2025

November 12-Botswana is making strides in bolstering regional petroleum security through major infrastructure projects and strategic initiatives aimed at ensuring a stable and resilient fuel supply.

Speaking at the Gaborone interstate oil industry seminar on November 12, Minerals and Energy permanent secretary, Mr Pelaelo Khowe underscored the importance of regional collaboration and innovative solutions to address ongoing supply challenges amidst global trade tensions.

He explained that member states of Southern African Customs Union (SACU) collaborated on issues including the security of supply, distribution, price harmonisation, quality standards, safety, and other vital matters affecting the oil sector.

Despite the efforts, he acknowledged that fuel supply challenges persisted, especially amid global unrest affecting trade and petroleum prices.

In response to the challenges, he said Botswana was exploring diverse solutions such as biofuels, coal-to-liquid technology, and joint procurement initiatives with neighbouring countries to secure supplies from international markets.

Mr Khowe said the country was also focusing on expanding its storage capacity, which remained critical to ensuring energy security.

He disclosed that currently, Botswana’s strategic fuel reserves cover only 13.9 days of supply, short of the 18 days deemed necessary.

To address this, he stated that government, through Botswana Oil Limited, was investing in major infrastructure projects to increase storage capacity to 100 days.

He said among the projects was the expansion of the Francistown Petroleum Depot from 38 million litres to 98 million litres, which was nearing completion, with an expected commissioning date of June 2026.

Additionally, he said a new Ghanzi petroleum depot with a capacity of 30 million litres was under construction and scheduled to be operational by August 2026.

Mr Khowe said the infrastructure developments being undertaken aim not only to secure supplies but also to improve trade routes, particularly with neighbouring Namibia.

Further plans, he said included developing a 187-million-litre storage facility at Tshele Hills and establishing a cross-border pipeline connecting South Africa and Zimbabwe to Botswana.

“The initiatives are designed to enhance the country’s capacity to manage supply disruptions and ensure consistent fuel availability,” he said. Mr Khowe also reported progress on the review of Botswana’s Petroleum Pricing Slate, completed in September 2024 by the Botswana Energy Regulatory Authority (BERA).

The revised framework incorporates a wholesale margin model and alternative supply routes from Mozambique and Namibia, which are expected to stabilise prices and reduce the financial burden on the National Petroleum Fund. Mr Khowe said, the new pricing system, which commenced on June  1, this year, aimed to balance the interests of suppliers, retailers, and consumers while providing relief to the government’s fuel subsidy programmes.

Looking ahead, Mr Khowe said the meeting would address outstanding issues, including revitalising the SADC petroleum sub-committee and standardising fuel quality across the region.

Discussions will also focus on developing more effective pricing systems that reflect current market realities, ensuring the sustainability and resilience of the regional oil industry.

In his welcome remarks, acting deputy permanent secretary, Mr Midas Sekgabo reiterated the importance of regional cooperation, emphasising that the SACU committee, comprising Botswana, Lesotho, eSwatini, Namibia, and South Africa was established to facilitate collaboration and ensure the continuous supply of petroleum products.

Through harmonised policies, shared infrastructure, and coordinated investments, he said the committee aimed to build a resilient, efficient, and sustainable petroleum ecosystem across Southern Africa. ENDS