Namibia’s emerging oil and gas industry could place unprecedented pressure on the country’s governance and accountability systems, with Bank of Namibia Deputy Governor Nicholas Mukasa warning that stronger oversight will be essential to protect public resources and maintain investor confidence.
Speaking at the Bank of Namibia’s Internal Audit Awareness Day on Wednesday, Mukasa said the country’s recent oil and gas discoveries have the potential to transform the economy, but cautioned that rapid growth and increased financial flows often expose weaknesses in governance structures if institutions are not adequately prepared.
“The larger and more complex our economy becomes, the greater the need for oversight, accountability and assurance mechanisms that safeguard public resources and strengthen public confidence,” he said.
Mukasa’s remarks come as Namibia positions itself to become one of Africa’s newest oil-producing nations, with major offshore discoveries attracting billions of dollars in exploration investment and raising expectations of future economic benefits.
He said the opportunities presented by oil and gas, together with developments in green industrialisation, digital transformation and regional trade, make it increasingly important for institutions to strengthen governance frameworks before the economy enters a new phase of growth.
“As our country positions itself to benefit from opportunities arising from oil and gas discoveries, green industrialisation, digital transformation, regional trade integration and economic diversification, the importance of strong governance systems becomes even more pronounced,” he said.
Mukasa warned that governance failures can undermine economic progress, damage public trust and weaken institutions.
“When governance falters, trust is eroded, value is destroyed and institutional resilience is weakened. The lessons have been both costly and instructive,” he said.
He pointed to past governance failures, including Namibia’s experience with SME Bank, as examples of the risks associated with inadequate oversight and accountability.
According to Mukasa, internal audit functions should play a central role in helping institutions identify risks, improve transparency and strengthen decision-making processes.
“Internal audit is an independent and objective assurance function. It provides assurance, strengthens accountability and promotes ethical conduct across institutions. In many ways, it functions as an organisational conscience,” he said.
His comments highlight growing concerns among policymakers and economists that Namibia must avoid the governance challenges and resource management problems that have affected some resource-rich countries.
Mukasa said the key challenge facing institutions is whether they are prepared to strengthen oversight mechanisms before major risks emerge.
“The real question is whether we are prepared to invest in it, empower it and listen to it before the next crisis emerges,” he said.
