Zimbabwe eyes Angola’s US$6bn Lobito Refinery as Harare seeks energy security

By Tichaona Katsvamutima

Zimbabwe has opened talks that could pave the way for investment in Angola’s multi-billion-dollar Lobito Refinery, joining growing regional interest in one of southern Africa’s biggest emerging fuel-processing projects.

Cabinet revealed Tuesday that Angola had expressed readiness to discuss investment and cooperation with Zimbabwe on the Lobito Refinery Project, with Harare now preparing to dispatch an energy ministry delegation to pursue the opportunity.

“The Hon. Vice President also noted the readiness of the Government of Angola to discuss investment and cooperation on the Lobito Refinery Project,” according to the post Cabinet briefing presented on Tuesday.

The Lobito project is being developed by Angola’s state-owned oil company Sonangol in Benguela Province and is designed to process up to 200,000 barrels of crude oil per day.

The refinery is intended not only to reduce Angola’s reliance on imported refined petroleum products, particularly petrol and diesel, but also to create a new petrochemical and industrial hub around Lobito.

The project, estimated to cost more than US$6 billion, has significant financing requirements, with billions of dollars required to bring the refinery to completion.

Its development has increasingly taken on a regional dimension, with neighbouring landlocked countries viewing Angola’s expanding refining capacity as a potential opportunity to diversify their fuel supply routes.

Botswana has explored possible participation in the Lobito project as part of efforts to diversify its fuel sources, while Zambia has also previously expressed interest in participating in the refinery and securing more reliable access to petroleum supplies.

That regional interest adds significance to Zimbabwe’s latest approach, potentially placing Harare alongside its neighbours in seeking strategic access to Angola’s expanding downstream petroleum industry.

Angola remains one of Africa’s major crude oil producers but has historically imported significant quantities of refined petroleum products because of limited domestic refining capacity. The Lobito project forms part of Luanda’s wider strategy to reverse that imbalance.

For Zimbabwe, the discussions come as Government simultaneously strengthens another strategic fuel route through Mozambique.

President Emmerson Mnangagwa travelled to Mozambique on September 2 for the groundbreaking ceremony of the Beira-Feruka pipeline expansion project, which Cabinet said was intended to strengthen regional energy infrastructure, trade and logistics cooperation.

Cabinet said the project also reinforces Zimbabwe’s position as a regional logistics hub.

Taken together, the Mozambique pipeline expansion and emerging Angola discussions point to Harare increasingly looking beyond its borders to strengthen the infrastructure and partnerships underpinning its long-term energy supplies.