HARARE – Zimbabwe is set to feature prominently in a new US$3bn energy financing push by African Export-Import Bank, as the continental lender moves to reconfigure Africa’s fuel supply chains away from traditional Middle Eastern routes and towards intra-African trade.
Speaking in Harare on Monday, the bank’s senior executive vice-president Denys Denya outlined a multi-layered strategy anchored on logistics, storage, and pipeline infrastructure designed to shorten delivery times and lower import costs across Southern Africa.
At the centre of the plan is a proposed fuel corridor linking West African refining capacity—particularly from Dangote Refinery—to downstream markets in the south. Afreximbank is working with partners to establish a strategic tank farm at Walvis Bay, which would serve as a regional distribution hub for countries including Zimbabwe, Zambia and Botswana.
The model aims to cut delivery times to under five days from Nigeria’s Atlantic coast—significantly faster than existing supply routes—and reduce exposure to volatile global shipping lanes.
Pipeline ambitions and domestic bottlenecks
For Zimbabwe, the initiative carries particular significance. Denya confirmed that the bank is exploring the construction of a new pipeline linking Namibia’s coast to inland markets, while simultaneously engaging local stakeholders to upgrade existing infrastructure.
Talks are under way with Mutapa Investment Fund and private sector players to expand the capacity of the Beira–Msasa pipeline—Zimbabwe’s primary fuel artery from Beira—and potentially extend it northwards into Zambia.
The bank is also procuring roughly 550 fuel tankers to support overland distribution, a stopgap measure aimed at easing supply constraints while longer-term pipeline projects are developed.
Zimbabwe’s fuel market has long been constrained by foreign currency shortages and dependence on distant suppliers. A more proximate, Africa-based supply chain could reduce landed costs and improve reliability for both industry and consumers.
Geopolitics reshaping African energy flows
The initiative comes amid heightened concern over global energy security following ongoing instability in the Middle East. Afreximbank has already deployed elements of its crisis-response financing in East Africa, with countries such as Kenya, Ethiopia and Tanzania accessing support.
Denya cautioned that a prolonged disruption in Gulf energy markets could rapidly exhaust the bank’s broader US$10bn contingency facility, underscoring the urgency of building resilient intra-African supply chains.
The shift reflects a wider continental push to internalise value chains in energy and reduce exposure to external shocks—an ambition closely aligned with the goals of the African Continental Free Trade Area.
Infrastructure gaps remain binding constraint
Yet the success of such initiatives hinges on resolving long-standing structural deficits. Across Southern Africa, and particularly in Zimbabwe, infrastructure limitations—from ports and railways to power generation—continue to constrain trade efficiency.
Denya emphasised that the AfCFTA’s promise would only be realised if African economies move beyond trading raw commodities towards finished goods, supported by integrated logistics and financial systems.
To that end, Afreximbank has rolled out instruments such as the Pan-African Payment and Settlement System, designed to facilitate cross-border transactions in local currencies and reduce dependence on the US dollar. The bank has also established a Fund for Export Development aimed at providing long-term capital to African enterprises.
Implications for Zimbabwe
For Zimbabwe, participation in these platforms could offer partial relief from persistent currency pressures and high transaction costs that burden cross-border trade. More fundamentally, improved fuel logistics could stabilise a critical input for the economy, with knock-on effects for transport, manufacturing and agriculture.
However, analysts note that infrastructure financing alone may not be sufficient. Policy consistency, regulatory clarity and credible governance frameworks will be equally important in ensuring that new investments translate into tangible economic gains.
If successfully implemented, Afreximbank’s fuel corridor strategy could mark a shift in how Southern Africa sources and distributes energy—placing Zimbabwe within a more integrated continental system. Whether the country can fully capitalise on that opportunity will depend on how effectively it aligns domestic reforms with this broader regional vision.
