Namibia’s ambition to process more of its minerals locally will remain out of reach unless the country secures affordable and reliable energy, economist Robin Sherbourne has warned.
Speaking during his annual State of the Namibian Economy presentation, Sherbourne said energy remains the single biggest constraint to establishing mineral beneficiation industries, as Namibia continues to rely heavily on imported electricity.
“If we’re going to pursue mineral beneficiation like the Chinese have, then we need energy, capital, skills and markets. We don’t yet have the energy—we’re still importing electricity, and it’s relatively expensive,” he said.
Sherbourne said beneficiation requires far more than government policy, noting that large-scale processing plants also depend on significant capital investment, specialised technical expertise and reliable export markets.
He added that Namibia’s investment environment must also improve, with several key pieces of legislation still awaiting implementation, including the Foreign Investment Act, Empowerment Act, Minerals Act, Special Economic Zone Act and Land Act.
Sherbourne said the country had also yet to introduce the promised Special Economic Zones after phasing out the Export Processing Zone incentive regime.
While Namibia’s mining sector generated more than N$64 billion in revenue in 2025, Sherbourne said the country was still missing opportunities to create additional value through downstream processing.
He argued that addressing the country’s energy deficit would be a prerequisite for unlocking future investment in beneficiation and expanding the mining sector’s contribution to economic growth.
