Afreximbank backs Zimbabwe fuel pipeline

Zimbabwe is expected to benefit from a new US$3 billion facility announced by the African Export-Import Bank (Afreximbank), aimed at strengthening intra-African fuel trade and reducing dependence on Middle Eastern supply chains.

Afreximbank senior executive vice president Denys Denya said the bank is working with Dangote to develop a fuel tank farm at Walvis Bay in Namibia. The facility is expected to improve fuel distribution across Southern Africa, enabling countries such as Zimbabwe, Zambia and Botswana to access fuel shipments from Lagos in less than five days.

The bank is also procuring around 550 fuel tankers to support regional road distribution and is exploring the development of a pipeline network linking Mozambique and Zambia, with possible extension into Zimbabwe. According to Denya, discussions are already underway with Zimbabwe's Mutapa Investment Fund and private sector stakeholders to expand the Beira–Msasa pipeline capacity as part of this broader infrastructure push.

For Zimbabwe, which continues to face foreign currency constraints for fuel imports, the initiative could lower import costs and improve supply reliability by shortening logistics chains and reducing reliance on distant suppliers.

Denya also warned that instability in the Middle East could strain global fuel markets, noting that Afreximbank's broader US$10 billion crisis-response programme is already being utilised by several East African countries and could see rapid uptake if disruptions persist.

Beyond energy, the bank highlighted its wider African Continental Free Trade Area (AfCFTA) agenda, including the Pan-African Payment and Settlement System, which allows cross-border trade in local currencies, and new financing tools designed to support industrialisation and export development.

For Zimbabwe, these initiatives could ease pressure on foreign currency demand, reduce transaction costs for regional trade, and improve integration into African supply chains as the country seeks to strengthen its industrial and trade position within the continent.