Cabinet approves upstream local content policy

President Netumbo Nandi-Ndaitwah says Cabinet has approved, in principle, the Upstream Local Content Policy following extensive nationwide consultations, aimed at ensuring meaningful participation of Namibians through skills development, employment creation and enterprise growth.

According to the president, the policy is designed to ensure that the development of Namibia’s petroleum resources translates into tangible socioeconomic benefits for all citizens.

“As Namibia transitions from exploration to development, the focus is on execution, timely project delivery and value realisation. Partnership remains central to achieving these objectives,” she said during the 8th Namibia International Energy Conference in Windhoek on Wednesday.

“While first oil is a critical landmark, it is not the end goal. The objective is structural transformation, inclusive growth and long-term prosperity.”

She emphasised that Namibia remains committed to maintaining a stable, transparent and predictable investment environment, underpinned by good governance, accountability and ethical leadership.

The president added that the development of the oil and gas sector is anchored in the country’s broader policy framework, including Vision 2030, which seeks to transform Namibia into a prosperous and industrialised nation.

She noted that the petroleum sector presents an opportunity to unlock new revenue streams, support industrialisation, drive infrastructure development and address unemployment.

In the medium term, she said, the sector aligns with the objectives of National Development Plan 6 (NDP6), which prioritises economic diversification, value addition, job creation and sustainable resource management.

“Oil and gas developments are expected to stimulate linked industries and expand the country’s productive base,” she said, adding that the sector also reflects commitments contained in the Swapo Party election manifesto, including inclusive growth, national ownership of resources and youth empowerment.

Presidency moves to consolidate control

Nandi-Ndaitwah’s push to take direct control of Namibia’s oil and gas sector has, however, sparked constitutional and political debate. Her administration has moved to shift key petroleum functions from the Ministry of Industries, Mines and Energy to the Office of the President, despite the Petroleum (Exploration and Production) Act of 1991 remaining unchanged.

Under the Constitution, the president has the authority to reassign the administration of laws or sectors among Cabinet members. Article 32(3)(i)(bb) empowers her to designate which minister or office oversees a portfolio.

Using this provision, the president has transferred coordination and policy oversight of the oil and gas sector to her office. However, the 1991 Act still vests licensing, regulatory and enforcement powers in the minister of industries, mines and energy.

In effect, the ministry remains the statutory regulator, while the presidency currently exercises policy and supervisory authority.

To address this gap, a new Petroleum (Exploration and Production) Amendment Bill has been tabled as an urgent measure by defence minister and acting industries minister Frans Kapofi.

If passed, the bill will transfer statutory powers to the presidency and establish an upstream petroleum unit within the Office of the President, headed by a director-general and deputy director-general.

Anti-corruption safeguards proposed

The proposed reforms also introduce stricter governance measures aimed at safeguarding the emerging sector from corruption and conflicts of interest.

Senior officials tasked with overseeing Namibia’s upstream oil and gas industry will be required to declare their assets and financial interests as a condition of holding office.

The Petroleum (Exploration and Production) Amendment Bill, 2025, mandates asset and liability disclosures by the director-general and deputy director-general of the proposed Upstream Petroleum Unit.

Minister of industries, mines and energy Modestus Amutse previously said the provision is intended to strengthen transparency and protect the integrity of public office as Namibia moves closer to becoming an oil-producing nation.

“These measures are meant to strengthen public confidence and uphold the principles of integrity and transparency in the administration of the petroleum sector,” Amutse told parliament during the bill’s second reading. - [email protected]