The Institute for Public Policy and Research (IPPR) has raised concerns about a lack of transparency surrounding the true beneficiaries of Namibia’s emerging petroleum sector, warning that secrecy over ownership structures could undermine public trust and fuel fears that oil wealth may benefit a small group rather than the broader population.
IPPR Director Graham Hopwood said limited disclosure about local partners in petroleum licences has created uncertainty about which Namibian individuals or companies stand to benefit from the country’s offshore oil discoveries.
For several years, the Ministry of Mines and Energy has encouraged international oil companies to allocate an additional 5% equity stake to Namibian partners, over and above the customary 10% share held by the National Petroleum Corporation of Namibia (NAMCOR) in petroleum licences.
However, Hopwood said the identities of the Namibian partners holding these stakes are seldom publicly disclosed.
“We also need to know which Namibians are involved and which Namibian companies hold these stakes. The Ministry of Mines and Energy has, for a number of years, encouraged international companies to allocate a 5% share to Namibian partners on top of NAMCOR’s conventional 10% stake in petroleum licences. However, these companies are rarely announced, which adds to the opacity surrounding the licensing process,” Hopwood said.
He added that although Namibia introduced requirements for companies to disclose their beneficial ownership information, access to this data has reportedly been restricted.
According to Hopwood, the Business and Intellectual Property Authority (BIPA) previously made beneficial ownership information available upon request when companies registered or updated their details. However, this information has reportedly been classified as confidential, preventing journalists, researchers and civil society organisations from accessing it.
“This undermines transparency and defeats the purpose of collecting the information in the first place, as it becomes more difficult to detect conflicts of interest, corruption or politically connected beneficiaries,” Hopwood said.
Concerns about transparency also extend to petroleum licensing more broadly. Hopwood noted that without a comprehensive access-to-information law, the public often struggles to obtain detailed information about exploration licences, participating companies and the Namibian entities involved.
While major international operators such as Shell are widely known to be active in Namibia’s offshore exploration programme, Hopwood said information about other companies and local partners is not always easily accessible.
The issue is particularly significant as Namibia develops policies aimed at ensuring local participation in the petroleum sector.
Government is currently developing a local content policy intended to ensure Namibians benefit from the oil and gas industry through employment opportunities, skills transfer and participation in the supply chain.
However, Hopwood warned that poorly regulated local content frameworks could create opportunities for patronage if transparency and oversight mechanisms are weak.
He said large procurement contracts linked to the petroleum sector could attract politically connected firms, inflated pricing, bid-rigging and cartel behaviour if robust governance safeguards are not in place.
Weak monitoring systems also make it difficult to assess whether local content policies are delivering measurable benefits such as employment creation, supplier development and gender inclusion.
To reduce these risks, Hopwood said stronger safeguards are needed, including anti-corruption clauses in contracts, independent oversight mechanisms to vet companies and individuals involved in the sector, fair procurement rules and the publication of detailed information on beneficiaries and economic outcomes linked to petroleum projects.
