Namibia risks losing control of mines, Amutse warns

Namibia risks losing control over critical industries if state-owned enterprises and local investors do not act decisively, industry, mines and energy minister Modestus Amutse warned yesterday in Windhoek.

Speaking at the rollout of state-owned enterprises (SOEs) overseen by his ministry, Amutse highlighted the growing influence of foreign investors in the mining sector and the urgent need to increase local participation and value addition.

Amutse said international investors are “seeing the opportunity while we are sleeping”, warning that without proactive governance and localisation measures, key sectors such as electricity and minerals could fall under foreign influence. This would limit Namibia’s ability to control pricing and industry decisions, he warned.

He specifically stressed the importance of small processing plants, arguing that raw minerals should not leave the country without being refined to create jobs, promote industrialisation, and add value locally.

“Why should these minerals leave the country the way they are?” he asked. “Why can’t we establish small processing plants so that when they leave, they have added value to many lives already?”

Key driver

According to a recent report by Namibian Sun, at least 11 of the 15 major mining companies operating locally are 80% or more foreign-owned. This is in stark contrast with government’s target under the Sixth National Development Plan (NDP6) to increase Namibian equity in mining ventures to 60% by 2030.

The report noted that the mining sector contributes over 13% to GDP and has been earmarked in NDP6 (2025–2030) as a key driver of economic transformation, job creation and industrial development.

The plan emphasises the need to move beyond primary extraction toward value addition, beneficiation and increased local participation.

Yet, as the Namibian Sun report noted, local equity remains alarmingly low, and the roadmap to reverse this trend is unclear, with ambitious targets but limited mechanisms to ensure meaningful Namibian stakes without scaring away investors.

Reporting inconsistencies

Amutse also framed these challenges as a matter of governance and accountability.

He repeatedly emphasised that execution on the ground, not paper reports, is the true measure of performance. Warning against inflated figures, he described visiting sites where reported 85–95% completion rates did not reflect actual progress.

“When we arrived at the actual site, there were very, very few people,” he said, noting that such discrepancies undermine trust and public confidence.

He pledged to personally visit projects and facilities under his ministry, with or without notice, to verify the reality on the ground – not to expose individuals but to strengthen systems.

The minister said leaders at all levels must take responsibility and assist one another rather than shift blame.

“Let’s assist each other. Let’s be honest. We are a big force; everyone of us has a role to play,” Amutse said, stressing that good governance, transparency and tangible execution are central to building confidence among the public and safeguarding Namibia’s industrial and economic future.

The minister concluded that restoring trust in public institutions, protecting Namibia’s strategic industries and ensuring meaningful local participation require leaders to act decisively today.

Execution, he said, is the measure that will determine whether Namibia’s youth and future generations inherit a strong, equitable and industrially vibrant economy.

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