Justicia Shipena
The resignation of James Mnyupe from the Namibia Green Hydrogen Programme (NGH2) has reignited doubts about the future of the ambitious project.
On Wednesday, reports by The Namibian said Mnyupe stepped down because of a lack of political support.
Mnyupe was appointed by former president Hage Geingob as the country’s first green hydrogen commissioner in August 2021.
He later became head of the Namibia Green Hydrogen Programme.
The green hydrogen project was the brainchild of Geingob. Geingob first announced the project during the high-level segment of COP26 in Glasgow in 2021.
Corporate governance expert Johan Coetzee told the Windhoek Observer that Mnyupe’s departure could negatively affect Namibia’s international marketing of the initiative.
“Mnyupe’s departure raises questions, especially since most of the programme’s visibility abroad was tied to him,” he said.
Coetzee pointed out that political support for the hydrogen drive has not always been strong.
“It is also well known that even in that context, the current president, prior to the national elections, wasn’t very much in favour of hydrogen. Not as much as the late president. So, if he said he was not politically supported, that means a serious problem. From, I think, the ruling party’s side,” he said.
In February, Swapo leaders and government technocrats finalised the party’s N$85.7 billion manifesto implementation plan.
Reports say green hydrogen was absent from the document, and the cabinet later approved it without a single reference to the project.
Before taking office, reports noted that President Netumbo Nandi-Ndaitwah asked government officials to explain the programme’s viability, which raised speculation that she leans toward the oil sector.
After assuming office, she placed oil and gas activities under her direct control.
According to Coetzee, the resignation could reinforce doubts among the public. “It will cause several doubts that have existed in the public’s opinion for some years now about the hydrogen project,” he said.
He also criticised the lack of transparency.
“Recently, as we have seen, now it started with a preferred status and so on. Transparency is not associated with that. So, I think it cannot impact very positively from a marketing perspective. Yeah, I think it can be quite negative,” he said.
Coetzee added that the development could still bring benefits if it leads to scrutiny.
“If we can remove the hype and start to look at the numbers – how many people have now already been employed due to the project, what benefits have been received, and how much has been invested in it, so that we get those numbers. Each resignation can trigger such questions, and that’s positive,” he said.
Investor confidence at risk
In May, Mnyupe left his role as economic presidential advisor after five years. He was first appointed as an advisor in 2020 during Geingob’s term and stayed on for a month for transition purposes.
Namibia hopes to industrialise and create jobs to ease the unemployment rate of about 37%. Several energy projects have been developed, including the Hyphen project in the Tsau/Khaeb National Park.
From 2028, the country expects to produce one million tonnes of green ammonia each year, mainly for export to Europe and Asia.
The Green Industrialisation Blueprint projected the strategy could create up to 250 000 jobs, with 185 000 direct jobs in construction and operations and another 70 000 in supporting industries.
Economist Joseph Sheehama told the Windhoek Observer that the resignation could unsettle investors if not managed well.
“If there’s no successor, this is bad news; if there is, it is excellent news,” he said.
He warned that investor confidence could suffer. “Investors may momentarily lose interest in it due to their faith in Mr James Mnyupe,” he said.
Sheehama said the project could falter if more investors withdraw.
“The majority of Namibians are skeptical about green hydrogen, which raises the probability that the nation’s initiative would fail,” he said.
He added that the sector demands expertise. “Green hydrogen requires people with knowledge and understanding, which makes it extremely difficult to make economically viable even with all the inflation reduction,” he said.
He emphasised that the government’s response will determine investor confidence.
“Considering the success of the project and public opinion, this is a major factor in sustaining green hydrogen as a means of promoting long-term economic prosperity. Governments should take confidence into account more when it comes to economic stimulation,” he said.
Last year, the Institute for Public Policy Research (IPPR) warned that the green hydrogen sector faced corruption risks if governance was not strengthened.
In a report titled ‘Why Namibia’s Green Hydrogen Sector Cannot Ignore Corruption Risks’, IPPR’s executive director Graham Hopwood said Namibia’s record of scandals, such as the fishrot case and the collapse of the SME Bank, highlighted the dangers.
The report flagged the refusal to release agreements, unclear processes on finance and land, limited consultation with communities, and the involvement of politically exposed persons.
“The sooner we recognise that green hydrogen projects cannot thrive on hype alone but require strong governance frameworks, the better their chances for success,” Hopwood had stated.
Some political parties have supported the idea of a green project, while others dismissed it as “all hype.”
A government report in July said the sector had attracted investment worth N$2 billion since its inception.
