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Angola is preparing to change the fuel supply story in Southern Africa. The country’s 30,000 barrel per day Cabinda refinery, its first since independence more than fifty years ago, is expected to start producing fuel before the end of 2025.
By Ryan Chigoche
At the inauguration ceremony, attended by President João Lourenço, Oil and Gas Minister Diamantino Azevedo declared:
“Today we can confirm that the Cabinda refinery is entering its decisive phase and that by the end of the year, Angola will have the first commercial derivatives produced at this unit.”
The refinery is a major breakthrough for Angola, but its significance stretches beyond national borders. As the only oil producer in the 16-member Southern African Development Community (SADC), Angola holds the key to reshaping how the region secures its fuel.
For decades, SADC countries have imported the bulk of their refined petroleum from Saudi Arabia and the UAE.
This dependence drains more than US$3 billion every month from African economies into Asia. If member states were to support Angola’s refining capacity and source fuel closer to home, that money could stay within the region, circulating through local economies and building industries instead of enriching foreign markets.
London-based Gemcorp, the main shareholder in the project, says the refinery’s first phase will meet between 5 to 10% of Angola’s fuel demand. A second phase is already planned, which will double output to 60,000 barrels per day and add a hydrocracking unit for diesel and jet fuel production.
Angola’s state owned Sonangol, which owns 10% of the plant, will supply the crude feedstock. Despite being Africa’s second largest oil producer, Angola still imports about 72% of its fuel needs, around 3.3 million metric tonnes annually. The Cabinda refinery is seen as the first step in breaking that cycle.
The impact of such a shift would be especially felt in Zimbabwe. The country has some of the steepest fuel prices in the region, ranking second highest in SADC and fourth in Sub-Saharan Africa. Petrol and diesel currently sell between US$1.55 and US$1.60 per litre, according to the Zimbabwe Energy Regulatory Authority.
In 2023, Zimbabwe spent US$1.55 billion on refined fuel imports, its largest single import item. Its biggest suppliers were the Bahamas (US$469M), Singapore (US$413M), and Bahrain (US$325M).
This reliance on faraway markets not only keeps prices high but also exposes Zimbabwe to global shocks. Political tensions in the Gulf, for example, often trigger sudden oil price spikes that ripple through to Harare’s fuel pumps.
Buying from Angola would be different. It could bring prices down, ensure more stable supplies, and protect Zimbabwe from external volatility.
Just as importantly, it would keep money circulating within SADC instead of leaving the continent.
The Cabinda refinery is therefore more than national infrastructure; it is a chance for the region to reset.
With billions of dollars flowing out of SADC every month for imported fuel, the need for cooperation has never been greater. For Angola, this is about becoming Southern Africa’s energy hub.
For the rest of the bloc, Zimbabwe included, it is about whether leaders are ready to trade with one another, lower costs, and build resilience.
This refinery could well be the catalyst for that long overdue shift.
