Industry players push against Botswana Oil import quota
Mbongeni Mguni - Pauline Dikuelo | Wednesday April 8, 2026 10:01
Late last year, multinational oil companies reportedly submitted their views on the review of Botswana Oil’s mandate to import 90 percent of the country’s fuel. Insiders involved in the process say the multinationals, who lost their mandates to Botswana Oil in 2024, have strongly pushed for a reduction of the 90%, a position only hardened by the outbreak of the Middle East crisis.
Engen Botswana, the only listed oil company, this week announced a 55 percent drop in pretax profits which directors said was linked to the “commencement of the petroleum products importation quota”.
“This has resulted in the group being a price taker due to the single source of supply regulation whereas competitors that are not subject to this regulation are able to determine their source(s) of supply and benefit from the prices of procurement,” directors said.
Mmegi is informed that in the wake of the global crude oil disruptions caused by the Middle East conflict, industry stakeholders are ramping up pressure on authorities to significantly review Botswana Oil’s preferred status.
While actual volumes imported by Botswana Oil are said to be less than 90 percent, with the balance brought in by licensed citizen-owned companies, industry players are understood to be pushing for greater latitude.
The U.S and Israel conflict with Iran has raised oil prices by triple figures, while triggering a global scramble for oil, particularly strategic stocks that governments hold as a last resort for their economies.
Ever since April 2024, Botswana Oil has had the sole responsibility of securing 90 percent of supply from the external market and on-selling this in the local market. The Botswana Energy Regulatory Authority has also granted licences to some citizen-owned oil companies.
“The situation is risky for the country’s fuel security,” an industry insider told Mmegi. “The multinationals in the market enjoy broad networks across Africa, the Middle East and the Americas. “They could leverage on these both in terms of product and also in terms of pricing, rather than relying only on Botswana Oil’s suppliers.”
Research firm, Oxford Economic Africa, identified Botswana as one of the countries in Southern Africa with a high fuel security risk from the ongoing global upheaval in oil.
Researchers noted that Botswana is amongst countries that rely heavily on imported refined fuel largely routed through South Africa, a country facing its own challenges.
“The country's low fuel reserves and the dependence of Eswatini, Lesotho and Botswana on South Africa for refined fuel mean that any shortages there would quickly spread across the region,” researchers noted. “Due to declining refining capacity, South Africa has become increasingly reliant on refined fuel imports from the Middle East, further exposing it – and the region – to the recent war.”
Oxford Economics Africa estimated that Botswana imports almost 80% of its oil from South Africa, a figure different from that provided by local authorities. Local industry players estimate that in terms of volumes, about 60 percent is routed through Mozambique and Namibia and the balance through South Africa.
The researchers noted that several major oil-producing nations including China and Russia, have imposed export bans on refined oil products. Should more countries follow suit, the resulting supply squeeze could drive up fuel prices further and trigger shortages across Southern Africa. “There is a risk of refined oil export bans by several Asian countries, compounding the disruptions of exports from Middle East. “China and Russia have already announced a full ban, and further restrictions in Asia would exacerbate fuel costs and shortages throughout Southern Africa,” the researchers noted.
Minerals and Energy minister, Bogolo Kenewendo, last week pleaded with the nation not to panic over fuel supplies, noting that various interventions were being made to ensure stability. Addressing Parliament last Friday, she said government strategic stock stood at 10.56 days, while commercial stocks were estimated 24.1 days.
Both figures represented improvements from the previous reported levels.
“We are running a coordinated approach with our neighbours in SADC because we recognise that it's only when we group our storage facilities and our supplies that we will be able to maintain some level of stability in the region,” Kenewendo said.
She continued: “I can assure you that government has implemented several measures to mitigate potential supply disruptions, including proactive supplier engagement and strengthened supply planning processes, expedited leasing of coastal storage facilities, both in Mozambique and Namibia, increasing monthly procurement volumes to build buffer stocks and continuous monitoring of global supply dynamics to enable early intervention. “These measures are designed to enhance resilience against external shocks, including logistical and geopolitical disruptions.”
Analysts say while the region makes its plans to boost fuel supply security, the ultimate decider will be how long the conflict in Iran lasts.