By Tom K. Alweendo
Namibia’s mining and energy sectors can become the strongest anchors of the country’s next phase of development.
In 2025, mining contributed about 14% of GDP, generated turnover of N$64.2 billion, paid N$7.8 billion in taxes, invested N$7.5 billion in fixed capital and spent almost N$24 billion with Namibian-registered suppliers.
The industry directly employed 20,798 people, while exploration expenditure reached nearly N$1.5 billion.
These are substantial contributions. Yet real mining activity contracted by 9.4% during the year, a reminder that resource economies remain exposed to commodity cycles, production changes and project delays.
Namibia must therefore judge success by more than tonnes produced, exports earned or taxes collected.
The deeper test is whether mining and energy build lasting national capability: competitive Namibian enterprises, skilled people, reliable infrastructure, sound public finances and wider economic ownership.
That is the transformation task before us. It requires vision to define the economy we want, innovation to find practical routes from resource extraction to wider development, and longterm commitment because institutions, skills and businesses are built over decades, not within one project or political cycle.
A clear national bargain
Namibia needs capital, technology and experienced operators capable of turning geological and energy potential into bankable projects.
Investors need stable rules, timely decisions and returns that justify long-term risk. These interests are not opposites.
The country needs a clear bargain: projects must remain commercially viable, but they must also produce measurable national value.
Broad policy ambitions should be translated into practical commitments. Major projects should have clear investment schedules, training plans, supplier-development programmes, local procurement reporting, infrastructure arrangements and agreed review points. The terms must be realistic and applied consistently.
Conditions that make viable projects unbankable produce no jobs or revenue. Equally, projects that leave too little value in Namibia will struggle to retain public support.
Build enterprises, not intermediaries
Mining and energy are capital-intensive. Direct jobs matter, but the larger employment and ownership opportunity lies in the supply chains around exploration, construction, operations and closure.
The almost N$24 billion spent with Namibian-registered suppliers in 2025 shows the size of this market. Registration, however, is not the same as local value creation.
We should know how much of that expenditure supports Namibian wages, management, equipment, technology, manufacturing and retained profit.
Major projects should publish forward procurement plans, preferably three to five years ahead.
This would allow government, industry, financiers and training institutions to identify what Namibian firms can supply now, where certification or working capital is needed, and where partnerships with experienced international firms are justified.
This is particularly important for businesses owned by previously excluded Namibians. Past exclusion still shapes access to capital, skills, networks and opportunity.
Participation must therefore be deliberate, but it must also be credible. Passive shareholding, fronting and politically convenient partnerships do not build capability and will not command public trust.
Support should favour firms with clear beneficial ownership, competent management, proper governance and a credible path to operational depth.
Joint ventures should include timebound commitments for technical training, management participation, access to equipment, technology transfer and the gradual movement of higher-value work to the Namibian partner.
Prepare before investment decisions are fixed
Local participation often disappoints because preparation starts too late. By the time a project reaches construction or final investment decision, engineering standards, vendor lists and financing structures may already be fixed.
Namibia should plan backwards from the project pipeline. For each likely mine, petroleum development, power project or hydrogen investment, we should identify the skills, services and infrastructure required at every stage.
Universities, vocational centres and industry programmes can then train against real demand rather than broad expectations.
Finance must form part of the same plan. Many local contractors can perform the work but cannot fund equipment, performance guarantees or the period between delivery and payment. Supplier-finance facilities, invoice discounting, equipment leasing and partial credit guarantees can turn procurement opportunities into sustainable businesses.
Use infrastructure as a national platform
Resource projects require power, water, rail, roads, ports, storage and digital systems. Where technically and commercially feasible, these assets should be designed for shared use. A transmission line built for a mine can unlock other industrial users. A water scheme can support neighbouring towns and enterprises. Port and rail upgrades can reduce costs across mining, agriculture and manufacturing.
The same commercial discipline should guide value addition. Namibia should pursue processing, fabrication, maintenance, logistics and specialist services where it has, or can build, a competitive advantage. Beneficiation that depends indefinitely on uneconomic subsidies will not last. The goal is not to process everything locally, but to build capabilities that can compete.
Manage revenue for resilience
Resource revenues are volatile. Commodity prices change, production declines, projects are delayed and some discoveries never become commercial developments. Exceptional revenue should therefore not create permanent spending commitments.
A clear fiscal rule should divide windfall income among present development needs, debt reduction, stabilisation savings and long-term investment.
The objective is to convert finite underground wealth into durable assets above ground: infrastructure, human capital, financial savings and capable institutions.
Make execution the competitive advantage
Namibia already has important strengths: political stability, mining experience, a functioning legal framework, Atlantic ports and access to the Southern African market. The next advantage must be execution.
Investors and citizens both benefit from clear timelines, coordinated approvals, consistent rules and transparent reporting. Standards should not be weakened; decisions should be better organised. A credible system says what is required, who decides, by when, and how performance will be measured.
Government cannot deliver this transformation alone. Investors must bring capital, technology and responsible project execution.
Financial institutions must fund viable local participation. Training institutions must respond to actual demand. Namibian firms must compete on performance, and communities must be engaged honestly where projects affect their land and livelihoods.
Namibia’s opportunity is not simply to produce more minerals, oil, gas or electricity. It is to use these sectors to reshape the economy.
The real measure of success will be what remains after the investment cycle: capable Namibian enterprises, a deeper skills base, reliable infrastructure, resilient public finances and broader ownership.
Achieving that outcome will take vision, innovation and long-term commitment. It is difficult work, but it is the work that turns resource wealth into shared prosperity.
