Tsantsabane Fuel Depot (Kalahari Fuel Depot)

Project location:
  • District: ZF Mgcawu District Municipality, Northern Cape Province, RSA
  • City/Town: Postmasburg
  • Physical address: ERF 1, Beeshoek Road, Postmasburg.

Project Background

Tsantsabane Fuel Depot was conceived by the management of Mabour Ink Enterprise, a Kuruman/Mapoteng village-based 100% black female-owned oil company. They decided to pursue their vision of establishing the first Northern Cape-based oil major supported by its own oil terminal/fuel depot/tank farm and in the process transform the economy for the benefit of the Northern Cape.

The concept of establishing the Tsantsabane Fuel Depot emerged from this passion and vision. Work on the project officially commenced in 2016, with engagements taking place between the sponsors, the Tsantsabane Local Municipality, Transnet and the mines in the region.

VGI Consulting Engineers have developed a conceptual design accompanied by an engineering study, which will form the basis of the bankable feasibility study.

Project Description

The facility will handle the storage and distribution of 40 000 000 litres of petrol (ULP), diesel, transmission oil and lubricants.

The project has additionally been allocated the Transnet New Multi-Purpose Product Pipeline (NMPP) approval, which will enable the transportation of fuel stock through the various points in the New Multi-Purpose Product Pipeline (NMPP). This approval further emphasises the strategic fit of the project to the country’s logistics infrastructure plans.

Transnet’s intention is the integration of the project into the Saldanha–Sishen rail corridor for enhancing the economic viability of the corridor.

  • Number of jobs to be created: The total number of jobs to be created (direct and indirect/construction) is 925.
  • Investment value: The total value of the investment is R400-million.
Targeted sectors:
  • Downstream oil and gas
  • Mining
  • Logistics
  • Infrastructure

Project Finance

An initial amount of R15-million is required to ensure the bankability of the project, in order to prepare the project for participation by the IDC and the DBSA.

The IDC has already issued a written expression of interest to finance the project once the initial tasks have been fulfilled by the project sponsors. The R400-million will further be financed by the IDC, the DBSA and a private equity partner brought by Mabour Ink Enterprise through a combination of debt, equity and mezzanine instruments.

Through the support of the Northern Cape Department of Economic Development, an investment of over R400-million will be unlocked and drawn to the Northern Cape Province.

Project Status*

Mabour Ink Enterprise needs R15-million for the bankability of the project. The project is still in Preparation and Engineering Feasibility Phase.

Project preparation is the process of analysing and developing a project idea into a final project ready for implementation. The product of this process is presented in the form of a Project Document. Project Preparation consists of all the work necessary to ensure that a proposed project is feasible and appropriate and that it can be successfully implemented. Mabour Ink Enterprise needs R15-million for the bankability of the project.

*At time of publication.


The Department of Economic Development and Tourism Northern Cape is the custodian of the project. Mabour Ink Enterprise are in talks with private equity investors, and EPC for the development of the project up to Operational phase.

Tsantsabane Local Municipality is the land owner, and authority responsible for zoning, approval of town planning scheme, and the inclusion of the Project in the 2021 IDP of the municipality, and other records of decision (RoD).

Transnet SOC is the precinct owner and conveyance partner. We envisage key development partners as the subsidiaries of the Central Energy Fund (CEF) – Strategic Fuel Fund (SFF) and Petro SA, the Industrial Development Corporation (IDC), the Development Bank of Southern Africa (DBSA), and foreign direct investment (FDI).

Contact information

Investors interested in discussing the opportunity with the project team are encouraged to contact the project promoters here:

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