Justicia Shipena
President Netumbo Nandi-Ndaitwah says Cabinet has approved the upstream local content policy in principle.
The national upstream petroleum local content policy is aimed at building local capacity and facilitating skills transfer, with the stated goal of directing the benefits of large-scale energy projects primarily toward Namibians.
It also seeks to create a globally competitive petroleum sector that maximises national benefits by fostering meaningful and lasting participation by Namibians and local businesses across the value chain.
Through the policy, the government also aims to diversify Namibia’s revenue sources beyond taxes and royalties by focusing on value extraction through backward, sideways and forward linkages.
It places emphasis on technology transfer, knowledge sharing and skills development, while promoting Namibian ownership and financing at all levels of the sector.
A key focus of the policy is balancing stronger local participation with continued foreign investment.
Data from the Ministry of Industries, Mines and Energy shows Namibia’s offshore oil and gas reserves could bring in up to N$7.7 billion a year for the government through royalties and taxes.
Nandi-Ndaitwah stated that the newly approved policy aims to guarantee direct benefits for Namibians as the country approaches its first oil production.
“This policy ensures that Namibians participate meaningfully in the sector through skills development, employment creation, and enterprise growth,” she said while opening the eighth Namibia International Energy Conference in Windhoek on Wednesday.
She said local content is central to the country’s development agenda.
“The objective is not only to produce oil but also to leverage this opportunity to advance national development, strengthen economic resilience, and improve the livelihoods of all Namibians,” she said.
Nandi-Ndaitwah said Namibia must ensure its natural resources support inclusive growth and warned against models that do not benefit citizens.
She said the country is entering a new energy phase that requires cooperation, investment and the use of local skills.
“The road to the first oil and beyond requires investment and partnership for economic growth and development to be realised,” she said.
The policy also seeks to move Namibia beyond relying only on taxes and royalties, with the aim of drawing more value from backward, sideways and forward linkages.
While the policy was still in the draft phase, concerns were raised that foreign investors dominate the oil and gas sector, which has become a cash cow for a few connected locals who sell exploration rights to international companies.
In September last year, the presidency, through its Upstream Petroleum Unit, launched public consultations on the local content policy in Lüderitz. The consultations were expected to cover all 14 regions.
In 2022, the Cabinet approved the drafting of the policy.
The following year, the Ministry of Mines and Energy said it was working to finalise the framework.
The sixth National Development Plan (NDP6) sets targets for the sector by 2030.
The targets include increasing carried participation from 10% to 15% over five years, producing 150 million barrels of oil equivalent, raising gas production to 130 million standard cubic feet per day, and creating 22 800 jobs.
Over the past three years, royalties from mining contributed N$5.96 billion to state revenue.
The conferences come at a time when major players, such as Shell, TotalEnergies, and Qatar Energy, have already made offshore discoveries.
Other companies exploring the Orange Basin include ExxonMobil, the French company Maurel & Prom, Chevron, Woodside Energy, Pancontinental Energy, Galp Energia and Rhino Resources, amongst others.
Two days ago, BP agreed to acquire a 60% interest in three offshore exploration blocks in Namibia from Canada-based Eco Atlantic Oil & Gas as part of its strategy to expand its upstream portfolio.
The Institute for Public Policy Research has previously noted that the local content policy will likely lead to revisions of the Petroleum Act, its regulations and model agreements between the Mines and Energy Ministry and international oil companies.
The IPPR also warned of the risk that international firms could use bribes to create local fronts to meet policy requirements.
Namibia is also at the forefront of championing green hydrogen energy and the kudu gas project.
Oil bill to speed decisions
Nandi-Ndaitwah also put the Petroleum Exploration and Production Amendment Bill in the spotlight at the conference.
The bill is before Parliament after the then interim industries, mines and energy minister Frans Kapofi failed to get it passed on an urgent basis last year. The National Assembly then put the proposal on hold after opposition lawmakers questioned the urgency.
The bill returned to the National Assembly two months ago through industries, mines and energy minister Modestus Amutse.
It came a day after Nandi-Ndaitwah, while opening Parliament this year, called on lawmakers to urgently consider amendments to laws governing Namibia’s natural resources.
The proposed legislation includes a fine of up to N$20 000 or imprisonment of up to five years for officials who breach conflict of interest rules in the petroleum sector.
The bill also proposes shifting authority over the oil and gas sector from the minister of industries, mines and energy to the Presidency.
The changes would give the Presidency power to grant, renew or revoke oil and gas licences.
“This reflects the strategic importance of the sector and ensures policy coherence, faster decision-making, improved coordination and strengthened accountability and shared prosperity,” Nandi-Ndaitwah said.
She said the discoveries offer a chance to drive economic change through higher revenues, infrastructure development, industrial growth and job creation.
“The government’s focus is to convert these resources into long-term national value through prudent management, local capacity development and economic diversification,” she said.
Young talent in the energy sector
African Energy Chamber executive chairman NJ Ayuk said local content policies must move beyond language and promises.
“Local content cannot just be smokes and screens. It has to be action,” he said.
Ayuk called for urgent action on energy security, youth inclusion and local capacity development in Namibia’s energy sector.
He said Namibia is at a critical stage where decisions made now will shape the country’s energy future.
Ayuk warned that Namibia remains heavily dependent on global supply routes, with a large share of its petroleum products moving through a key international shipping corridor.
“That is a reminder that our energy security in this country is important. That is a reminder that we can produce energy in Namibia and for Namibians to benefit Namibians and build this country,” he said.
He said geopolitical developments affecting global supply chains continue to expose weaknesses in Namibia’s energy system.
The conflict in the Middle East has pushed the government to subsidise fuel at a cost of about N$500 million per month. The government has cut fuel levies by 50% for three months and will also absorb part of the import cost through the national energy fund.
For April, fuel increased by N$2.50 for petrol and N$4 for diesel.
Ayuk also highlighted the scale of energy poverty across Africa, saying millions still lack access to basic energy services.
He said the economic cost of energy poverty continues to weigh on the continent, affecting growth and health outcomes.
Ayuk said the energy industry must take responsibility for addressing these challenges while also preparing for future demand, including digital infrastructure.
“Our young people are demanding something bigger of us. They’re saying that we need to use this energy that we found to embrace the future, to drive data centres, and to meet that AI challenge,” he said.
He said the sector’s future depends on attracting and developing young talent.
“Our industry goes nowhere without young people,” he said.
Ayuk said companies must move now to recruit, train and promote young professionals.
“It starts with STEM. It starts with us hiring them, with us promoting them. It starts with us being deliberate to give them those opportunities, not tomorrow, not next year, but today,” he said.
He also urged the industry to focus on growth and innovation despite global pressure to scale back fossil fuel development.
“We have a choice. A choice that says embrace innovation, embrace growth, and embrace prosperity,” he said.
Held under the theme “The Road to First Oil & Beyond: Partnership. Investment. Growth”, the conference is focused on what still needs to happen to reach first oil, the building blocks required and the latest developments in Namibia’s energy sector.
Beyond oil, the 2026 conference also focuses on renewables, natural gas, power and emerging energy solutions.
The conference has brought together policymakers, regulators, investors, industry leaders and innovators to discuss partnerships, investment and long-term growth strategies.
Delegates are reviewing progress, examining challenges and identifying opportunities for value creation across the energy sector.
RichAfrica Consultancy founder and chief executive Ndapwilapo Selma Shimutwikeni, who convenes the conference, called for stronger collaboration to unlock Namibia’s energy potential and ensure long-term economic impact.
“My hope is that this platform does more than facilitate dialogue, that it adds real value, shapes our national energy trajectory, and contributes to practical solutions,” she said.
She said Namibia is one of the world’s most promising new hydrocarbon frontiers but warned that discoveries alone do not guarantee economic transformation.
“The real value lies in what we build around them: industries, skills, infrastructure, and long-term economic resilience. This is where our focus must be,” she said.
Shimutwikeni said success in the energy sector should be measured by its ability to drive broader economic growth through supply chains, local businesses and participation across the value chain.
She said inclusive growth depends on opportunities reaching beyond boardrooms and into communities.
“Sustainable growth is built when local capacity is developed and when opportunity reaches beyond boardrooms into communities and everyday livelihoods,” she said.
She said collaboration remains essential.
“If there is one message I would like to emphasise today, it is this: collaboration is not optional; it is essential. The scale of opportunity before us cannot be realised in silos,” she said.
More than 2 537 delegates from 46 countries, 410 speakers and 1 500 companies are expected to wrap up talks on the energy sector on Friday.
