Patience Makwele
Africa Provider Offshore Services (APOS) chief executive Veronique Hermans said Namibia stands at a “critical turning point”, as offshore discoveries in the Orange Basin attract global attention and investment.
Her comments come as momentum builds around the development of major oil and gas discoveries.
“Participation must occur on a level playing field,” Hermans said, stressing that both local and foreign companies must comply with Namibian tax and labour laws.
She said enforcing these rules is key to ensuring oil revenues flow into state coffers and support priorities such as infrastructure, healthcare and education.
The government has indicated it wants stronger local participation in the sector. Policy frameworks aim to increase Namibian ownership while expanding employment and skills development.
The debate has widened to include concerns about resource governance, local content requirements and the risk of capital flight as multinational companies expand operations in Namibian waters.
Some analysts say the main challenge is not the discovery itself but how the sector is managed. “Petroleum is less about geology and more about institutions,” one policy analysis states, pointing to governance, licensing and revenue management as key factors.
Others warn that oil wealth does not automatically lead to development.
“Natural resources do not automatically translate into national prosperity,” analysts said, citing experiences from other resource-rich countries.
Hermans said local companies must play a central role as the industry develops.
She pointed to collaboration through the Contractors Oil and Gas Association of Namibia (COGANAM) as a way for Namibian firms to compete for large contracts.
By forming consortia and sharing expertise, local companies can build the scale needed to participate in the value chain, she said.
“Every Namibian worker trained and every local company engaged is an investment in the country’s future capacity,” Hermans said.
Hermans also raised the issue of data ownership, saying access to reliable information is important for managing the sector.
She said Namibia must move from being a resource holder to an active participant in the industry.
Hermans said the country should expect challenges as the sector develops.
“Namibia will likely encounter its own missteps as the sector matures,” she said.
Hermans said maintaining local ownership and decision-making authority will allow Namibia to learn from its mistakes and strengthen its institutions.
“There is a profound dignity in ownership,” she said.
Economist Robin Sherbourne warned that local content policies must be carefully designed.
He said companies are likely to source locally “where it makes commercial sense” and cautioned that excessive intervention could increase costs and create room for rent-seeking.
