TURNING POINT | Cape Fria and the crisis of trust: Why government must reset its relationship with Namibian entrepreneurs

The renewed national conversation around the proposed Cape Fria harbour development is both timely and necessary. For decades, Cape Fria has occupied a near-mythical space in Namibia’s development imagination, a strategic deep-water port on our northern coastline that could unlock regional trade, stimulate industrialisation, and rebalance economic activity away from the traditional Walvis Bay–centric axis.

From a purely academic standpoint, the logic is compelling. Namibia sits at the crossroads of southern Africa, with direct access to landlocked economies such as Zambia, Zimbabwe, and parts of the Democratic Republic of Congo. A well-executed harbour at Cape Fria would not only complement existing infrastructure but potentially reposition Namibia as a logistics powerhouse along the Atlantic seaboard. It would catalyse sectors ranging from fisheries and oil services to manufacturing and tourism.

Yet, as with many grand visions in our national story, Cape Fria has been plagued by inconsistency, speculative proposals, and a troubling lack of institutional clarity. The recent controversy surrounding the so-called “Kaoko Fria” smart city, complete with exaggerated investment figures and unrealistic job promises, only served to erode public confidence. It is within this context that President Netumbo Nandi-Ndaitwah’s caution against “dubious actors” must be understood and, indeed, supported.

The President is correct.

Namibia cannot afford to gamble its developmental future on opaque entities with questionable track records. Large-scale infrastructure projects demand not only capital but also technical expertise, governance discipline, and long-term commitment. The risks of failure are simply too high, economically, politically, and socially.

However, while we agree with the President’s insistence on credibility and competence, there is a deeper, more uncomfortable truth that must be confronted: Namibia’s development challenge is not merely about filtering out dubious foreign actors. It is also about confronting the persistent mistrust between government and its own entrepreneurial class.

For too long, Namibian entrepreneurs have operated in an environment that oscillates between benign neglect and outright suspicion. The implicit assumption, rarely stated but often felt, is that local business lacks the sophistication, capital depth, or integrity to execute projects of national significance. As a result, government tends to look outward first, seeking validation from foreign investors, consultants, and developers.

This must change.

There is a growing cohort of Namibian entrepreneurs, many of whom are highly educated, globally exposed, and deeply invested in the country’s future, who are more than capable of participating meaningfully in projects like Cape Fria. They may not always have balance sheets that rival multinational conglomerates, but they possess something arguably more valuable: contextual intelligence, long-term commitment, and a vested interest in national success.

From an academic perspective, development literature consistently emphasises the importance of endogenous capacity-building. Countries that succeed in industrialisation and infrastructure development do so not by outsourcing their ambitions, but by cultivating domestic capabilities. South Korea, Singapore, and even closer examples like Botswana have demonstrated that sustainable growth is rooted in empowering local actors while strategically leveraging foreign expertise.

Namibia must heed this lesson.

A reset is urgently needed in how government engages with Namibian entrepreneurs. This is not a call for blind patriotism or preferential treatment devoid of merit. Rather, it is a call for structured inclusion, transparent frameworks, and genuine partnership.

Firstly, government must create clear pathways for local participation in large-scale projects. This includes consortium models where Namibian firms can partner with credible international players, ensuring both skills transfer and local value retention. Too often, local companies are relegated to peripheral roles, subcontractors rather than co-creators.

Secondly, there must be an intentional effort to de-risk local enterprise. Access to finance remains a major constraint for Namibian businesses. Development finance institutions, both public and private, should be mobilised to support viable local participation in strategic projects. Without this, calls for “local involvement” will remain rhetorical.

Thirdly, and perhaps most importantly, there must be a shift in mindset. Trust is not built through speeches; it is built through consistent action. When government signals confidence in its own entrepreneurs through procurement decisions, policy frameworks, and public rhetoric, it creates a virtuous cycle of investment, innovation, and accountability.

The Cape Fria project presents a unique opportunity to demonstrate this new approach.

Imagine a development model where credible international investors are partnered with Namibian firms from the outset. Where local engineers, financiers, and project managers are embedded in the core of the project, not its margins. Where the economic benefits, jobs, skills, and profits are meaningfully retained within the country.

Such a model would not only enhance the project’s legitimacy but also ensure that its impact extends far beyond the harbour itself.

Of course, this requires discipline from the private sector as well. Namibian entrepreneurs must rise to the occasion, embracing higher standards of governance, transparency, and execution. The era of entitlement must give way to an era of excellence. Credibility, after all, is earned.

But credibility must also be recognised.

President Nandi-Ndaitwah’s warning about dubious actors is a necessary safeguard. Yet, it must be complemented by an equally strong message of confidence in Namibia’s own capabilities. The two are not mutually exclusive; they are, in fact, mutually reinforcing.

Cape Fria should not become another chapter in Namibia’s long history of unrealised potential. Nor should it become a playground for speculative opportunists. Instead, it should mark the beginning of a new developmental compact, one grounded in competence, transparency, and, above all, trust.

The time has come for government to press the reset button. Not just on Cape Fria, but also on its relationship with Namibian entrepreneurs. Because no nation can outsource its future.

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