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Positioning Namibia’s oil and gas sector for long-term growth under central oversight

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July 10, 2025
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By Michelle Ngaujake

 

As Namibia enters a new phase in its oil and gas journey, the recent decision to relocate the sector’s oversight (the Upstream Petroleum Unit) to the Office of the President represents a pivotal moment.

More than an administrative shift, this realignment offers a unique opportunity to elevate sector performance through streamlined coordination, high-level visibility, and policy continuity.

In a fast-evolving global energy landscape, governance structures play a key role in investor perception, institutional efficiency, and inclusive national benefit. Namibia’s strong democratic foundation, commitment to the rule of law, and emerging upstream potential position it well to build a globally competitive oil and gas industry.

Within this context, the appointment of two dedicated advisors to the Presidency’s oil and gas unit is a welcome development. It offers the industry a sense of continuity and focus at a critical time of transition. Their leadership presents an opportunity to move beyond symbolic reform by anchoring decision-making in transparent processes, inclusive consultation, and long-term national objectives.

With the right support and mandate, there is every reason to believe these values can be effectively translated into action.

 

Enabling an Efficient and Transparent Governance Model

 

Efficiency and responsiveness remain central to a thriving oil and gas sector. With decision-making now housed within the Presidency, there is an opportunity to reduce inter-agency delays and fast-track strategic approvals.

For this shift to yield results, however, it must be accompanied by strengthened institutional mechanisms – including digital systems, clear lines of accountability, and consistent regulatory coordination.

 

Governance reforms that prioritize turnaround times, clarity in roles, and minimal duplication of effort will help ensure that central oversight translates into operational effectiveness rather than bottlenecks.

 

Guarding Against Informality and Enhancing Integrity

 

Globally, resource-rich economies often contend with the risks of informal influence and regulatory capture, and Namibia is no exception. As oversight becomes more centralized, proactive transparency measures will be key to maintaining public and investor trust.

 

Institutional checks, such as transparent procurement systems, third-party audits, and regular performance reporting, can serve as critical safeguards to ensure decisions are based on national value, not access or influence. Integrity systems must evolve alongside structural changes to ensure that oversight delivers efficiency.

 

Delivering Inclusive Local Content Outcomes

 

The expected release of Namibia’s local content policy is a major milestone for the sector. Properly implemented, it can drive job creation, skills transfer, and the growth of Namibian-owned enterprises across the value chain.

 

To realize this potential, frameworks must extend beyond policy statements. Implementation will require enforceable participation thresholds, targeted supplier development programs, and data systems to monitor impact.

Most importantly, the policy must ensure that benefits reach grassroots communities, particularly SMEs, rural suppliers, and underrepresented groups such as youth, women, the disabled and marginalized communities.

 

Namibia has a unique opportunity to avoid the pitfalls seen elsewhere in the region by embedding inclusivity and long-term capability building from the outset.

 

Maintaining Investor Confidence Amid Structural Change

 

Namibia has quickly earned recognition as one of Africa’s most promising oil and gas frontiers. Offshore discoveries, investor-friendly legal frameworks, and relative political stability have helped to attract significant exploration interest.

 

As oversight shifts, preserving investor confidence will require predictability. Clarity on regulatory procedures, consistency in licensing and fiscal regimes, and respect for existing contracts remain foundational to sector stability. International benchmarking – such as Namibia’s strong performance in the Fraser Institute’s Investment Attractiveness Index – reinforces the value of good governance to Namibia’s global image.

 

Any structural changes must therefore be accompanied by deliberate messaging and engagement to reassure investors that long-term policy direction remains steady.

 

Aligning Sustainability with Sector Growth

Namibia’s international environmental commitments, including its obligations under the Paris Agreement, are becoming increasingly relevant to how resource decisions are made. As global energy investors face rising ESG expectations, integrating sustainability into national oil and gas strategies is no longer optional.

 

Future-focused governance must address emissions, ecosystem protection, and climate resilience – not as constraints, but as enablers of investment. Namibia has the opportunity to position itself as a continental leader in balancing fossil fuel development with green innovation and responsible stewardship.

The Role of Institutions and Dialogue

 

The success of this governance shift will depend not only on what happens within the Presidency, but also on the strength of Namibia’s broader institutional ecosystem. Agencies such as NAMCOR, the Ministry of Mines and Energy, and established platforms like the Namibia Petroleum Operators Association (NAMPOA) and the Contractors Oil and Gas Association of Namibia (COGANAM) are well-positioned to facilitate implementation, coordinate industry perspectives, and foster constructive engagement with government.

 

Robust, inclusive engagement between government, industry, and civil society will help ensure that structural reforms remain people-centred, commercially grounded, and strategically aligned.

 

In Conclusion

Placing Namibia’s oil and gas portfolio under the Presidency marks more than just a bureaucratic shift – it signals a potential turning point in how the country governs, develops, and shares the value of its natural resources.

 

If executed with clarity, transparency, and inclusion, this move could lay the foundation for a modern, investor-ready, and people-centered energy future. Namibia now stands at the edge of opportunity, with the potential to ensure that its natural wealth becomes a sustainable engine for shared prosperity.

 

*The views expressed in this article are solely those of the author and do not represent the views of her current employer. They are intended to encourage constructive dialogue within the industry.

*Michelle Ngaujake is an oil and gas professional based in Namibia. She holds an LLM in Oil and Gas Law from the University of Aberdeen (Scotland), among other qualifications. With over two decades of experience spanning government relations, business strategy, regulatory affairs, and investment policy, she brings a unique, cross-sector perspective to the energy space. Her writing explores the intersection of natural resource governance, investor confidence, and inclusive economic development.

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