Minister of Mines and Energy, Tom Alweendo, says Namibia’s recent oil and gas discoveries in the Orange Basin will require deliberate preparation and strategic planning to translate into tangible economic benefits.
Speaking at the launch of the Industrial Baseline Survey (IBS) Outcomes for Namibia’s upstream Oil and Gas (O&G) industry, Alweendo cautioned against expecting automatic gains from the discoveries.
“Fortunately, it is not going to happen automatically. Just because there’s a discovery, it does not mean that suddenly we are going to see GDP doubling or matching the numbers being mentioned. It won’t just happen by itself,” he remarked, underscoring the need for calculated efforts to capitalize on these resources.
Alweendo highlighted the necessity of understanding the gaps and capabilities required to develop the O&G sector effectively. He stressed that competitiveness and capability-building are essential to ensure the industry can transform Namibia’s economy. “We need the infrastructure that is required, we need the human capability that is needed, and we more or less know where we are and what we need to do,” he explained.
The Minister called for the creation of a national preparedness strategy that clearly defines roles for all stakeholders involved in the O&G sector. He stressed that such a strategy is vital to ensure a coordinated approach to addressing the sector’s challenges and opportunities.
“If we don’t do that, and we all try to act separately without knowing what other stakeholders are doing, we may actually miss something,” Alweendo said. He noted that a comprehensive strategy would ensure alignment across government, industry, and entrepreneurs to achieve long-term goals.
Alweendo further emphasized the need to equip Namibian entrepreneurs with the skills and capabilities to participate meaningfully in the industry. Without a system to support skills development and quality enhancement, local players risk being sidelined in the competitive global market. “If we simply deny them the opportunity because they lack capability or are still struggling, but we do nothing to help them, I don’t think we would be doing justice to what we need to achieve,” he said.
The Minister stressed that Namibia has a unique window of opportunity to address gaps in infrastructure, workforce capabilities, and policy alignment before final investment decisions are made by industry players. He praised the findings of the IBS for providing a clear roadmap for what needs to be done to prepare the country for this transformative opportunity.
“Let’s really look at ourselves in terms of what is needed and also in terms of what we already have. It is very, very important,” he reiterated.
The IBS, commissioned by TotalEnergies and Shell, evaluated Namibia’s local supply chains, workforce capabilities, and investment potential. These findings, now publicly available, aim to guide Namibia’s policy and strategic priorities for fostering local content and economic growth in the O&G sector.
This comes as Namibia’s gross domestic product (GDP) is forecast to grow by 58% annually, primarily driven by the oil and gas sector, according to a survey by Deloitte Namibia. The IBS findings show that the oil and gas sector will contribute an average of US$648 million (N$11.5 billion) to GDP each year during the production phase.
During the construction phase, Namibia’s GDP is expected to grow by 1%, with an estimated annual impact of US$113 million (N$2 billion) contributed by oil and gas activities. The primary drivers would be an increase in gross operating surplus and additional income for skilled labor, the survey stated.
Meanwhile, as the project transitions into the production phase—projected to last 20 to 25 years—the economic impact is expected to be even more substantial. In a scenario involving one floating production storage and offloading unit, the construction phase is anticipated to last 6 to 8 years and generate approximately 5,000 jobs, contributing to a 1% GDP growth during this period.
The report indicates that these 5,000 jobs will include 500 direct jobs, 2,000 indirect jobs, and 2,500 induced jobs. Key sectors expected to benefit include transport (953 jobs), wholesale and retail trade (598 jobs), and private household services (595 jobs).
Additionally, approximately 7,000 jobs are anticipated to be created during this phase, with private household services, wholesale and retail trade, and transport industries serving as the primary drivers.
