Namibia’s Mines Minister Calls for Strategic Planning to Maximize Oil and Gas Benefits

Namibia’s Mines Minister Calls for Strategic Planning to Maximize Oil and Gas Benefits

Namibia’s recent oil and gas discoveries in the Orange Basin present a tremendous opportunity for economic transformation, but Minister of Mines and Energy Tom Alweendo warns that deliberate preparation and strategic planning are essential for turning potential into reality.

Speaking at the launch of the Industrial Baseline Survey (IBS) Outcomes for Namibia’s upstream oil and gas (O&G) industry, Alweendo emphasized that economic benefits won’t materialize automatically.

“Just because there’s a discovery doesn’t mean we’ll instantly see GDP doubling or hitting the high figures being mentioned. It requires calculated efforts,” Alweendo said.

He highlighted the need to address infrastructure gaps and build human capital to ensure the O&G sector becomes a catalyst for Namibia’s economic growth.

“We need the required infrastructure and human capability. We know where we stand and what needs to be done,” he explained, stressing that competitiveness and capability-building are crucial for industry success.

Alweendo advocated for a national preparedness strategy to define the roles of all stakeholders in the O&G sector.

Such a strategy would ensure coordination and alignment across government, industry, and entrepreneurs, helping Namibia overcome challenges and seize opportunities.

“If we act separately without understanding what others are doing, we risk missing key opportunities. A comprehensive strategy ensures everyone is aligned toward long-term goals,” he said.

To maximize local participation, the Minister underscored the importance of equipping Namibian entrepreneurs with the skills and resources needed to compete in the global market.

“Denying opportunities to local players without supporting their development would be unjust. We must focus on skills enhancement and quality improvement,” Alweendo said.

The Industrial Baseline Survey, commissioned by TotalEnergies and Shell, provides a roadmap for Namibia’s O&G sector by evaluating local supply chains, workforce capabilities, and investment potential.

According to Deloitte Namibia, the sector is expected to drive GDP growth by 58% annually, contributing an average of $648 million (N$11.5 billion) to GDP each year during the production phase.

During the construction phase, GDP growth is projected at 1%, with an estimated annual contribution of $113 million (N$2 billion) from O&G activities.

The phase will generate approximately 5,000 jobs, including 500 direct, 2,000 indirect, and 2,500 induced jobs. Key beneficiaries include the transport, wholesale and retail trade, and private household services sectors.

In the production phase, anticipated to last 20–25 years, the economic impact will grow even more significant, creating around 7,000 additional jobs across multiple industries.

Alweendo stressed the urgency of addressing gaps in infrastructure, workforce development, and policy alignment before final investment decisions are made.

“Let’s assess what we already have and identify what’s needed to capitalize on this unique opportunity,” he urged.

Namibia’s proactive approach, backed by the IBS findings, positions the country to leverage its oil and gas resources for sustainable economic growth, fostering local content, creating jobs, and ensuring long-term prosperity.

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