Oman taps Africa’s supply chains with Botswana energy, mining deals

MUSCAT, APRIL 14
Oman has expanded its strategic economic push into Africa through a set of agreements with Botswana covering solar power, fuel storage and mineral exploration, in a move that signals a broader shift in how the Sultanate of Oman is deploying sovereign-backed capital abroad.
The agreements, signed during Botswana President Duma Boko’s visit to Oman, bring together three Omani entities — OQ, OQ Alternative Energy and Minerals Development Oman (MDO) — and place Oman in sectors increasingly seen as central to Africa’s next phase of growth: energy security, infrastructure and critical minerals. Reuters reported that the deals form part of Botswana’s own drive to diversify beyond diamonds, while Oman is also seeking to broaden its economy beyond oil.
Speaking to the Observer, a specialist in financial markets, urban planning and energy said the significance of the Botswana agreements lies not only in their commercial value, but in what they reveal about Oman’s wider investment posture.
“What we are seeing is a more active Omani role abroad”, he said. “This is no longer just about placing capital. It is about building positions in strategic sectors that can generate long-term value, strengthen economic diplomacy and extend the reach of Omani operational expertise”.
The clean energy component is among the most prominent. Oman’s Foreign Ministry said OQ Alternative Energy signed a power purchase agreement with Botswana Power Corporation to develop a 500-megawatt solar photovoltaic plant in Maun, integrated with a battery energy storage system. The ministry said the project falls within a wider 3,000-megawatt cooperation framework agreed by the two countries in November 2025.
That project is significant in Botswana’s domestic context. Botswana Power Corporation says the country’s peak electricity demand is around 700 megawatts and that the government is targeting a 50 per cent renewable share in the national energy mix by 2030. On that basis, the Maun project is not marginal. It is a large-scale contribution to Botswana’s energy transition and a sign of confidence in Oman’s ability to deliver utility-scale renewable assets overseas.
The second pillar is oil logistics and storage. Botswana Oil Limited signed a joint development agreement with OQ to build oil storage infrastructure in Walvis Bay, Namibia and in Botswana. The cooperation is intended to evaluate integrated storage and supply solutions that would enhance fuel security and create commercially viable investment opportunities.
That matters because Botswana relies fully on imported fuel. Botswana Oil’s published material says the country imports around 1.3 billion litres of fuel annually, underlining the strategic case for greater storage capacity and more diversified supply routes. For Oman, the agreement gives OQ a role in infrastructure tied directly to energy resilience in southern Africa.
Mining forms the third track. The exploration agreement targets vast unexplored areas covering roughly 70 per cent of Botswana’s territory, with interest in minerals including copper, gold, graphite and iron ore. The agreement between Minerals Development Oman and Exploration Investment Company Botswana includes geological data exchange, technical cooperation and joint study of investment opportunities in strategic minerals.
Taken together, the deals suggest that Oman is moving beyond the model of a passive overseas investor and towards that of a strategic developer of real assets. For a country focused on diversification, that has wider implications: stronger access to future-facing minerals, exposure to cross-border energy infrastructure and new openings for Omani firms and expertise in external markets.