By Louise Hangero
Extractive industries operate in socially and environmentally sensitive contexts where regulatory approval alone is no longer sufficient.
In these industries, companies must also secure and maintain what is widely known as a social license to operate, which typically refers to the acceptance and trust of the communities that host extractive activities.
Corporate social responsibility (CSR) has therefore become a primary tool through which companies pursue this license.
Despite growing CSR activity, the contribution of CSR to long-term social and economic development remains uneven. Too often, CSR is treated as a reputational exercise or a mechanism to demonstrate goodwill, rather than as a strategic investment capable of delivering lasting development outcomes.
This context presents an opportunity to rethink the role of CSR in Namibia, shifting from short-term community projects toward initiatives that generate measurable and lasting social impact.
- CSR and the limits of the social license approach
Many CSR initiatives in Namibia are implemented to manage community expectations, reduce potential conflict, or demonstrate goodwill during sensitive project phases such as exploration or construction.
While these interventions can help secure short-term community acceptance and provide tangible benefits, particularly in remote areas where public services are limited, they rarely translate into lasting improvements in community livelihoods.
Investments focused on temporary employment or short-term infrastructure may be welcomed by communities, but without alignment with broader development objectives, they seldom generate sustainable impact.
This limitation is evident in small towns where economic activity has remained limited despite nearby extractive operations.
Despite decades of CSR spending by major operators, economic diversification in many such towns remains constrained, highlighting a fundamental limitation of CSR as a tool for securing a social license to operate. These experiences underscore the need to shift toward more strategic, development-oriented CSR that creates long-term social impact for extractive-dependent communities.
- Visibility-driven CSR
One common feature of CSR programs is the emphasis on visible infrastructure projects such as classrooms, water points, and community facilities. While these can provide immediate benefits, they do not always translate into sustainable economic opportunities.
Instead, this new infrastructure can create additional maintenance obligations for local authorities that are already constrained, particularly where no sustainable funding arrangements exist.
These experiences highlight the limitations of short-term, visibility-driven CSR and reinforce the need for more strategic social investment approaches that prioritize long-term community resilience.
- Project-based CSR
Beyond visibility-driven projects, a deeper issue lies in the project-based nature of many CSR interventions. These initiatives are often implemented as stand-alone projects rather than as part of broader development pathways.
As a result, they frequently operate independently of regional development plans, labour market realities, and the life-cycle of extractive projects.
This challenge is particularly relevant as Namibia’s offshore oil and gas sector begins to take shape alongside other energy initiatives.
While these projects are frequently framed as drivers of inclusive growth, industrialization, and sustainable development, early CSR commitments may replicate traditional extractive-sector models of once-off donations, ad hoc community projects, and limited transparency around how benefits are shared.
- Towards strategic and accountable CSR
To address these challenges, CSR must evolve in several important ways.
- First, CSR planning should be aligned with national development strategies. When social investments complement existing public development priorities, they reinforce rather than duplicate government efforts.
- Second, CSR initiatives should be monitored using outcome-based indicators rather than simply tracking the number of projects delivered.
- Third, communities and government should be meaningfully involved in the design of CSR initiatives. Moving beyond consultation toward genuine co-creation helps ensure that social investments respond to real needs and local aspirations.
- Finally, CSR must be integrated into mine closure, decommissioning, and energy transition planning to safeguard livelihoods beyond the life of extractive projects.
Transparency is equally important. Public disclosure of CSR objectives, budgets, and outcomes would strengthen accountability and build trust among communities, regulators, and investors alike.
*Louise Hangero is a sustainable development researcher focusing on extractive‑sector governance, energy justice, and inclusive development.The views expressed in this article are those of the author and do not necessarily reflect the views of her employer or any affiliated institution.
