King Mswati III announced plans for a Strategic Oil Reserve during his meeting with Azerbaijan President Ilham Aliyev in Baku, ahead of the UN World Urban Forum. He said recent geopolitical tensions had exposed vulnerabilities in global supply chains, particularly for fuel, fertiliser and petroleum‑based products.
The monarch told his Azerbaijani counterpart that Eswatini is currently building a Strategic Oil Reserve capable of storing fuel for about two months. He added that the country is actively seeking partnerships for both supply and infrastructure development.
King Mswati invited Azerbaijan’s state‑owned energy company, SOCAR, as well as interested mining firms, to take part in the project. He also floated the longer‑term possibility of constructing an oil refinery domestically.
Eswatini’s Strategic Oil Reserve aims to boost regional energy security
Eswatini, a landlocked nation bordered by South Africa and Mozambique, is positioning itself as a potential regional fuel distribution hub, according to Mswati. The reserve would reduce the kingdom’s reliance on imported fuel and improve its ability to withstand external shocks.
President Aliyev welcomed the proposal and instructed his ministers to explore investment opportunities, citing ongoing fragility in global supply chains due to geopolitical instability. He signalled Baku’s willingness to consider joint ventures in storage and logistics.
The proposed reserve forms part of broader efforts by several African countries to strengthen energy security and reduce exposure to external supply shocks following recent volatility in global oil markets. Regional leaders have stressed the need for domestic buffering mechanisms to safeguard essential services.
By storing fuel for two months, Eswatini could maintain essential transport, agriculture and power generation even if overseas shipments are delayed. This buffer would also give the government greater leverage in negotiating future supply contracts.
Officials have indicated that the reserve will be developed in phases, beginning with above‑ground tanks at a secure site near the capital, Mbabane. Subsequent stages may include underground caverns and pipeline links to neighbouring states.
The king’s outreach to SOCAR reflects Azerbaijan’s own ambition to diversify its energy investments beyond traditional hydrocarbon exports. Baku has been expanding its footprint in African infrastructure through concessional loans and technical assistance.
Industry analysts note that a successful oil reserve could inspire similar initiatives in other landlocked African states, which often face higher logistics costs and supply interruptions. A network of national reserves might eventually support a coordinated continental response to market disruptions.
While the project is still in its planning stages, the commitment from both Eswatini and Azerbaijan signals a growing recognition of energy resilience as a cornerstone of national development. Stakeholders will be watching closely for concrete timelines and financing arrangements in the coming months.
The Strategic Oil Reserve represents a pragmatic step toward reducing vulnerability in a region that remains heavily dependent on imported fuel. If realised, it could enhance Eswatini’s stature as a logistics hub and contribute to broader stability across southern Africa.