South Africa has unveiled plans to expand its strategic oil reserves for the first time since crude stockpiling was undertaken during the apartheid era, marking a significant step in efforts to strengthen energy security and cushion the country against future supply disruptions. A draft policy document released by the Department of Mineral and Petroleum Resources for public consultation proposes maintaining reserves capable of covering 60 days of national demand. Under the proposal, around two-thirds of the reserve would consist of crude oil, while the remaining portion would be held as refined oil products. The plan places renewed emphasis on strategic oil reserves as part of the country’s long-term approach to mitigating supply shocks.
Based on estimates that place South African oil demand at 600,000 barrels per day, the proposed reserve would total about 36 million barrels, representing an asset worth billions of dollars. In addition to the state-held reserves, the draft policy would require licensed wholesalers and importers to maintain inventories equivalent to 21 days of demand. Oversight and management of these strategic oil reserves would fall under the state-owned South African National Petroleum Co.
According to the Department of Mineral and Petroleum Resources, the National Treasury and the SANPC will develop financing mechanisms and instruments for the financing and guaranteeing strategic petroleum stocks.
Regional efforts gain momentum as governments strengthen fuel security
South Africa’s last major emergency stockpiling initiative dates back to the 1970s after the United Nations imposed sanctions on the country over its policy of institutionalized racial segregation. Those circumstances resulted in the construction of the 45 million-barrel Saldanha Bay storage hub on the Atlantic coast.
More recently, concerns over supply security and higher prices linked to the US-Israeli war on Iran have restored the facility’s original purpose of serving as a safeguard against severe oil-supply shortages. The conflict across the Middle East contributed to higher global fuel prices while prompting countries to seek alternative sources of supply. Across Africa, several governments responded by reducing taxes and allocating budget resources to help contain fuel costs.
Alongside these short-term measures, governments are increasingly pursuing infrastructure investments designed to strengthen control over fuel supplies and reduce dependence on trading companies. Morocco announced in June 2026 that it will invest $641 million in the development of fuel-storage facilities, while Uganda plans to expand a state-owned terminal to improve supply stability. Ghana is also preparing to increase the use of domestic crude in its refineries.
At the same time, billionaire Aliko Dangote has accelerated projects across the continent after his Nigerian refinery increased production during the Persian Gulf conflict. These initiatives include constructing another refinery of the same design in Kenya as well as developing storage facilities in The Gambia.
