• Market Watch

Namibia’s upstream local content policy

• 2 Weeks Ago - 2024-12-06 00:00:00

Namibia’s Cabinet has approved the National Upstream Local Content Policy, a transformative framework aimed at reducing reliance on foreign expertise and empowering local communities within the nation’s burgeoning oil and gas sector.
This strategic initiative underscores Namibia's commitment to strengthening economic sovereignty while creating a globally competitive supply chain.
With the first oil production anticipated by 2029 from the Venus and Graff discoveries and potential acceleration from the Mopane field, this policy is timely.
It provides a robust foundation for maximising local involvement in the petroleum value chain, ensuring the benefits of Namibia’s oil wealth remain within the country.

Transformation
Namibia has been on an upward trajectory since major discoveries in the Orange Basin, including Venus-1X, Graff-1X, Jonker-1X and Mopane-1X.
International oil majors such as TotalEnergies, Shell and Galp Energias are leading exploration efforts, with final investment decisions (FID) for Venus-1X and Graff-1X expected by the end of 2024.
The policy ensures that Namibian businesses and workers play a central role in this growing sector.
The National Upstream Petroleum Local Content Policy aims to address challenges such as limited local employment, reliance on imported goods and services and a lack of domestic technological expertise.
By integrating Namibian businesses into the supply chain, the policy is set to create jobs, foster energy independence, and promote sustainable development.

Key policy features
Local Content Plans: Oil operators must submit detailed plans outlining commitments to hiring Namibian labour, engaging local businesses and investing in workforce training.
Regulatory Oversight: The ministry of mines and energy will ensure compliance, creating a stable and transparent environment for investors.
Alignment with national goals: The policy aligns with Namibia’s Vision 2030, Harambee Prosperity Plan, and National Development Plan, all aimed at fostering an industrialised economy driven by Namibians.
Capacity Building: Operators are encouraged to invest in local technology, infrastructure and education to ensure sustainable growth.

Growth
The policy aligns Namibia’s resource wealth with long-term economic goals, emphasising industrialisation, job creation and energy security.
It positions the country as a model for other African nations seeking to balance international investment with local development.

Stakeholder support
The African Energy Chamber (AEC) praised the policy, with its executive chairman, NJ Ayuk, stating: “This policy is essential for Namibia’s energy ambitions.
“It not only ensures economic benefits for the people but also sets a benchmark for responsible investment in Africa’s energy sector. With discoveries exceeding 11 billion barrels, Namibia is poised to become a key player in the continent’s oil and gas industry.”

Pathway to prosperity
As Namibia moves toward implementation, the policy will prioritise local participation, economic diversification and regulatory stability, making the nation a leading example of how to harness natural resources for inclusive growth.
The policy’s success could inspire similar initiatives across Africa, demonstrating the value of balancing foreign investment with domestic empowerment.
With first oil expected in 2029, Namibia’s journey toward becoming an energy powerhouse is well underway, driven by a vision of shared prosperity and national development. - devdiscourse.com