US Firm Builds 300M-Litre Fuel Hub, Boosting Namibia's Strategic Role

WASHINGTON, DC – March 26, 2026 – A U.S.-based energy firm, The Atacama Group (TAG), has announced a landmark project to construct a 300-million-litre fuel storage facility in Namibia's Port of Walvis Bay. The development represents one of the largest private infrastructure investments in the port's history and signals a major step toward reinforcing energy security for the entire Southern African region.

A Strategic Gateway for Southern Africa

The planned facility at the Walvis Bay New North Port is designed to function as a strategic Atlantic gateway for the Southern African Development Community (SADC). It will dramatically expand the port's capacity to import, store, and distribute refined fuels to Namibia and its landlocked neighbors, which are heavily reliant on imports that traverse long and often congested supply routes.

Currently, Namibia imports around 60% of its electricity, and its existing fuel import facilities have been described as aging. While the country commissioned a 75-million-litre National Oil Storage Facility (NOSF) in 2021—increasing its fuel supply security from about 10 days to over a month—the new TAG project is four times that size, highlighting the immense scale of the perceived need.

By creating a large-scale storage buffer at a key coastal entry point, the project aims to shorten complex logistics chains, reduce transport bottlenecks, and provide a more reliable energy supply for critical industries. "Walvis Bay is uniquely positioned to serve the energy needs of the interior," said TAG Chairman Scott Lewis in a statement. "By expanding storage capacity at the port, we can connect global fuel suppliers more directly with Southern Africa's industrial and mining economies."

This new infrastructure is set to address a significant gap. Many SADC nations depend on fuel that must travel vast distances inland, creating vulnerabilities and increasing costs. The Walvis Bay hub is envisioned as a central point that will streamline this process, ensuring a more stable and efficient flow of energy to power regional development.

Fueling Economic Growth Across the Region

The economic implications of the project extend far beyond the energy sector. A stable and cost-effective fuel supply is the lifeblood for industries like mining, transportation, and manufacturing—all pillars of Southern Africa's economy. The development is expected to lower logistics costs, improve operational efficiencies, and enhance the competitiveness of Namibian and regional businesses.

The Atacama Group stated the project will foster local employment and technical skills development. While specific job numbers for this project have not been released, similar infrastructure developments in Namibia offer a potential blueprint. The smaller National Oil Storage Facility created over 40 permanent jobs, and other proposed storage projects in the Walvis Bay corridor have projected the creation of over a thousand direct and indirect jobs.

This investment aligns with the Namibian Government's broader strategy to leverage its strategic geographic location and world-class port facilities to become the primary logistics hub for the SADC region. By bolstering the Walvis Bay corridor, Namibia aims to unlock economic potential not only within its borders but also for neighboring countries like Zambia, Zimbabwe, Botswana, and the Democratic Republic of Congo.

The Geopolitical Undercurrents of Energy Investment

The announcement does more than just outline an infrastructure project; it highlights a deepening strategic and economic partnership between the United States and Namibia. The investment is seen as a tangible outcome of U.S. efforts to secure resilient supply chains for energy and critical minerals, positioning American companies at the forefront of Namibia's resource boom.

U.S. Ambassador to Namibia John Giordano framed the project in starkly strategic terms. "The TAG fuel storage project is a critical step in developing the Southern Africa energy and transportation logistics corridor from the Port of Walvis Bay into the SADC region," he stated. "As an American company, TAG is helping advance the infrastructure vital to supporting our critical minerals and energy security objectives in Namibia and the region."

This focus on critical minerals is no coincidence. Namibia is a major uranium producer and has significant deposits of other minerals vital to the global energy transition and high-tech industries. As the U.S. seeks to diversify its supply chains away from other global powers, Namibia has emerged as a key potential partner. This fuel hub can be seen as foundational infrastructure, ensuring the energy required to extract, process, and transport these valuable resources is secure.

Navigating Private Investment and Local Realities

Leading the ambitious venture is The Atacama Group, an enterprise chaired by Maryland-based entrepreneur Scott Lewis, who has over three decades of experience in global supply chains and infrastructure. The firm's focus is on developing large-scale platforms that connect African ports with inland markets. TAG is working in partnership with the IIB Group, an international investment and banking group, and is represented by KRL International, a Washington D.C.-based consultancy known for facilitating complex infrastructure deals in emerging markets.

While the project's exact investment value remains confidential, its scale suggests a figure in the hundreds of millions of dollars, likely dwarfing the approximately N$5.2 billion (over US$300 million at the time) cost of the much smaller national facility completed in 2018. Such a massive private investment underscores a significant bet on the future of the region's economy.

However, projects of this magnitude invariably face local scrutiny, particularly regarding environmental impact. Fuel storage facilities carry inherent risks of spills, emissions, and fire, and past port developments in Walvis Bay have prompted community and environmental concerns. Under Namibian law, a comprehensive Environmental Impact Assessment (EIA) will be a mandatory prerequisite, requiring the developers to identify and propose mitigations for potential risks. The Namibian Ports Authority (Namport) holds ultimate responsibility for environmental protection within the port, and public participation is a standard part of the EIA process. As the project moves forward, navigating these regulatory frameworks and addressing community and environmental considerations will be a critical step in realizing the facility's ambitious goals for both the company and the region.