By Mutindi Lydia Jacobs
Hello everyone, and welcome back to Part 2 of The Energy Explainer. If you read Part 1, you will remember the analogy at the heart of this series: a neighbour coming into your home to bake a cake in your kitchen.
Local content is the set of rules that ensures you are not just a spectator in your own home, that you get to supply the flour, turn on the oven, and eventually, learn to bake the cake yourself.
The good news? The cake is almost in the oven. The not-so-good news? Many of us still haven’t found the recipe.
In this article, we are going to be honest about why most Namibian SMEs are not yet ready to participate in the oil and gas sector, and more importantly, what they can do about it, starting today.
The Countdown Is Real
Let us set the scene. One of the most significant players in Namibia’s Orange Basin, TotalEnergies is expected to make their Final Investment Decisions (FIDs) before the end of 2026. But what does FID actually mean?
Think of it this way: imagine you have been planning to build your dream home for years. You have the land, the architect’s drawings, and you have spoken to the builders.
The FID is the moment you sign the contract, hand over the deposit, and construction begins. For TotalEnergies, this is the moment they commit billions of dollars to developing Namibia’s offshore oil fields and move from exploration into actual production.
Once that commitment is made, procurement begins. Contracts get issued. Service providers get shortlisted.
The supply chain activates. And here is the critical question every Namibian SME owner needs to be asking themselves right now: when that call comes, will I be ready to answer it?
What Are the “Ingredients” Namibian SMEs Need to Supply?
Before we can talk about the readiness gap, we need to be clear on what the oil and gas sector actually needs from local businesses. Returning to our cake analogy, the “ingredients” fall into three broad categories.
The Raw Materials. These are the flour and eggs of the operation, the physical goods that keep a project running. For Namibia, this means local vendors supplying food, water, office consumables, safety gear, and construction materials to onshore support bases and camps.
It also means the potential, over time, to manufacture or assemble smaller components such as pipes, valves, and fittings, within Namibia rather than importing them from other countries.
The Kitchen Tools. These are the bowls, the mixer, and the oven, the capital and infrastructure that make production possible. For local businesses, this translates into opportunities in financing, insurance, port logistics, warehousing, and transport. Namibia has the ports. It has the roads. The question is whether our businesses are positioned to service the infrastructure that international operators will rely on.
The Recipe and Expertise. This is the most valuable ingredient of all, and the hardest to supply. It covers technical services, engineering, environmental assessments, geological surveys, legal drafting, as well as the support services that keep any large operation functioning such as logistics, security, catering, waste management, and IT. Crucially, this is where skills transfer happens. When a Namibian engineer works alongside an international counterpart and genuinely learns the craft, the recipe stays in the country long after the oil company packs up and leaves.
So the ingredients are there to be supplied. The question is whether our SMEs are equipped to supply them.
The Readiness Gap — Where the Pain Is
A couple of weeks ago, I attended the Upstream Oil and Gas Local Suppliers Workshop in Windhoek, hosted by Petrofund and key industry partners. Sessions included Oil and Gas Operators unpacking their procurement procedures and outlining the various requirements that local busineses must meet to participate in their supply chain operations. I want to be honest about what I heard in that room, because it reflects a reality that many Namibian business owners are living but few are saying out loud.
Access to Finance. You cannot win a N$15 million logistics contract if the bank will not lend you the money for the trucks. Oil and gas contracts are large, they have long payment cycles, and they require significant upfront capital investment in equipment, staffing, and insurance. Most Namibian SMEs simply do not have the balance sheet to absorb that kind of risk, and traditional lending institutions have historically been cautious about financing businesses in sectors they do not understand well. This is one of the biggest structural barrier.
Certification Gaps. This one caught many people in that workshop by surprise. The ISO 9001 standard, a globally recognised quality management system certification, is increasingly being treated as a baseline requirement by international oil and gas operators, not a differentiator. If you do not have it, your bid may not even be considered. Yet the vast majority of Namibian SMEs have never heard of it, let alone pursued it. Alongside ISO 9001, sector-specific safety certifications for offshore work are equally critical.
Lack of Formal Business Systems. This is the gap nobody likes to talk about, but it is real. Many Namibian SMEs operate well on the strength of relationships, hustle, and hard work, but they do not have the formal systems that large operators require before awarding contracts: documented processes, audited financial statements, HSE (Health, Safety and Environment) policies, quality management frameworks, and formal governance structures. Without these, even a capable business looks risky on paper.
Inability to Scale. A N$5 million catering contract sounds like a dream, until you realise it requires feeding 800 workers three times a day for 18 months, with cold chain logistics, health compliance, and zero margin for error. Many SMEs that could technically do the work have never had to operate at that scale, and they underestimate what it demands in terms of staffing, systems, and working capital.
Visibility and Market Access. How does TotalEnergies know you exist? International operators work through formal vendor registration systems and curated supplier databases. If your business is not on those lists, you are invisible, regardless of your capability. Too many Namibian SMEs are waiting to be discovered rather than actively positioning themselves in the spaces where procurement decisions are made.
Contractual and Legal Literacy. Oil and gas contracts are dense, technical documents with significant liability provisions. Without access to legal and commercial expertise, Namibian SMEs can find themselves agreeing to terms they do not fully understand, or worse, walking away from contracts because the paperwork feels intimidating.
How to Fix It — A Practical Roadmap
Here is where I want to be direct with you. The readiness gap is real, but it is not insurmountable. The SMEs that will benefit from Namibia’s oil and gas sector will not be the ones waiting for a phone call. They will be the ones who used this window, before FID, before the contracts fly, to get their house in order. Here is how.
- Get ISO 9001 Certified. This is non-negotiable if you are serious about the sector. ISO 9001 is a quality management system standard that demonstrates to clients that your business has consistent, documented processes. The Namibia Standards Institution (NSI) is the national body that can guide you through the process. It takes time and investment, but it is the single most powerful signal you can send to an international operator that your business is serious. Start by visiting NSI’s offices or their website and requesting information on the ISO 9001 certification pathway. See <https://www.nsi.com.na/product/nams-iso-90012015/>.
- Register on Vendor Databases.
Registering on vendor databases does not guarantee a contract, but it puts you in the room. It also forces you to formalise your company profile , which is a useful discipline in itself.
Some examples are:
Total Energies – TotalEnergies operates a global supplier portal called TOPLC, and Namibian businesses are encouraged to register directly. See < https://totalenergies.com/suppliers>.
NAMCOR – (Namibia’s state‑owned oil and gas company) issues tenders and RFQs for goods and services, and typically invites suppliers to register via its procurement page. See <https://www.namcor.com.na/procurement/>
The Namibian Sustainable Supplier Database – an NIPDB linked, national supplier database designed to connect sustainable suppliers in Namibia with potential investors to accelerate market entry and operations. See < https://sd2.nipdb.com/>
Namibia Oil and Gas Supplier Database (community platform)- A dedicated “Yellow‑pages style” supplier database for the Namibian oil and gas sector, intended to connect local SMEs with operators and contractors. See < https://namibiaoilandgas.com/business-directory/>.
NamPort – Supplier Registration (logistics & port services) – NamPort is a key node for oil and gas logistics and storage. Its supplier registration process is online and open to SMEs wanting to bid for port‑related and downstream support work. See < https://www.namport.com.na/procurement/steps-on-supplier-registration-expression-of-interest-of-bids/570/>.
- Pursue Joint Ventures Deliberately. Do not wait for an international company to approach you. Approach them. Attend industry events, introduce yourself, and propose joint ventures where your local knowledge, relationships, and operational presence complement their technical capacity and capital. The oil and gas sector runs on relationships. A JV with an established international firm also gives your business credibility by association, and the opportunity to genuinely learn the industry from the inside.
- Build a Bankable Company Profile. Before you approach any financier or operator, make sure your business presents professionally. This means: audited financial statements for at least two years, a company profile that clearly articulates what you do and your track record, an organogram showing your management structure, and an HSE policy. If you do not have these, NIPAM (Namibia Institute of Public Administration and Management) offers business development training, and the NCCI (Namibia Chamber of Commerce and Industry) can connect you to resources.
- Access Available Finance Instruments. The Development Bank of Namibia (DBN) has specific SME financing products and has signalled interest in supporting businesses entering the energy value chain. Petrofund exists specifically to develop capacity in the petroleum sector and runs training and development programmes. Do not wait until you have a contract to approach these institutions, build the relationship now, so the financing conversation is already underway when the opportunity arrives.
- Get the Legal and Contractual Literacy You Need. The Law Society of Namibia can help you identify legal practitioners with commercial and energy sector experience. Law firms such as Shakwa Nyambe & Company Incorporated are specialized in Energy, Natural Resources, and Commercial Transactions and are well positioned to advise on legal matters pertaining to the industry. Before you sign any contract in this sector, make sure you have counsel who understands what you are signing.
Who to Approach — Your Starting Point
You should not have to figure this out alone. Here are the key institutions that exist to support Namibian SMEs entering the energy sector:
Namibian Association for Offshore Oil and Gas Service Providers (NAOGSP): A newly formed industry association representing Namibian offshore oil and gas service providers. The Association is dedicated to fostering collaboration, facilitating knowledge exchange, and promoting business development among its members, thereby optimizing its contribution to the country’s offshore oil and gas sector.
Petrofund (Petroleum Training and Education Fund): Established specifically to develop human capital and enterprise capacity in Namibia’s petroleum sector. They run training programmes, workshops, and SME development initiatives.
Namibian Youth Energy Forum (NYEF): Established in 2024 as a registered non-profit youth platform driving youth participation, local content development, skills advancement, and inclusive engagement across Namibia’s evolving energy sector.
NIPAM (Namibia Institute of Public Administration and Management): Offers business management, leadership, and entrepreneurship training. Useful for building the management and governance capacity that operators look for.
NCCI (Namibia Chamber of Commerce and Industry): Your primary business networking and advocacy body. They can connect you to other businesses, inform you of upcoming procurement opportunities, and represent SME interests in policy discussions.
DBN (Development Bank of Namibia): For project and SME financing, particularly for capital-intensive ventures. Engage them early about your business plan and the financing you will need.
NSI (Namibia Standards Institution): Your entry point for ISO certification. Contact them about the ISO 9001 pathway and associated costs.
NAMCOR: For vendor registration and sector-specific information about local content requirements and upcoming procurement.
NTA (Namibia Training Authority): For vocational and technical skills training relevant to oil and gas support roles. If you need to upskill your workforce, this is where to start.
Namibian Petroleum Operators Association (NAMPOA): A not-for-profit association established in 1992 to represent the Namibian upstream oil and gas industry, and provides an interface for the industry with the public and the Government. The association’s members have collectively been instrumental in not only increasing the understanding of the petroleum geology of the region, but continue to contribute to the Namibian economy as investors and support Namibia’s economic development.
Each of these institutions has a role to play. You do not need to engage all of them at once, but you should have a relationship with at least two or three of them before the first contracts are awarded.
Stop Watching. Start Baking.
Let me bring it back to the kitchen. The Orange Basin is real. The oil is there. TotalEnergies is expected to make their Final Investment Decisions before the end of this year, and when they do, the procurement engine will start. Contracts will be awarded. Supply chains will be built.
The question is not whether the cake will be baked. It will be. The question is whether Namibian businesses will be the ones supplying the flour, operating the ovens, and learning the recipe, or whether we will once again be watching from outside the kitchen window while someone else takes the cake home.
The readiness gap is closable. But only if we are honest about where we stand and deliberate about what we do next. Get certified. Get registered. Get the financing conversation started. Build your JV pipeline. And show up, at every workshop, every industry event, every opportunity to be seen.
The cake is in the oven. Let’s stop watching and start baking.
See you next week for part 3.
