Critics say new oil policy seeks to empower the rich
Staff Reporter
Windhoek
Government’s proposed national upstream petroleum local content policy has come under fire for focusing on previously disadvantaged Namibians rather than currently disadvantaged Namibians – a distinction critics argue will channel oil wealth to the already wealthy and politically connected.
Cabinet officially approved the policy in late 2024, marking a pivotal moment as the country gears up for first oil production, potentially as early as 2029.
In principle, the policy aims to reduce reliance on foreign expertise and boost economic sovereignty and technical capacity, while ensuring the growth of the oil and gas sector benefits local businesses and workers.
Operators must submit periodic reports covering procurement, performance, training and employment. Proposals not aligned with policy intent will be rejected.
But the Economic Policy Research Association (EPRA) has sounded the alarm about ongoing nationwide consultations on the draft policy, accusing government of repeating past mistakes that have excluded the unemployed, rural poor and jobless youth from genuine economic participation.
According to EPRA, the focus on “previously disadvantaged” beneficiaries mirrors earlier empowerment drives such as fishing quotas, mining deals, state loan schemes, the New Equitable Economic Empowerment Framework (NEEEF) and the Investment Promotion Bill.
In each case, they argue, a small inner circle of elites benefitted disproportionately while the broader population was left out.
New generation
of disadvantaged
Previously disadvantaged Namibians are defined by Article 23(2) of the Namibian Constitution and include individuals from racial groups disadvantaged by past discriminatory laws and practices before independence, as well as women and people with disabilities.
This designation is the constitutional basis for affirmative action policies like NEEEF, which aims to redress socio-economic inequality by providing for the advancement of these groups through various empowerment initiatives.
“The 55% of Namibians who are unemployed are the currently disadvantaged. Yet this group will be overlooked, while those who were once poor but are now rich continue to benefit,” the association said.
The organisation warned that the draft oil and gas framework risks creating what it termed “oil-rot”, echoing the Fishrot scandal that shook Namibia’s fishing sector. It cautioned that politically connected middlemen without technical expertise could once again position themselves as fronts for foreign companies, extracting huge fees without providing real goods or services.
New voices
Social welfare academic and public intellectual Dr Ndumba Kamwanyah said the concerns raised by EPRA are valid, urging government to get this policy right.
“To make sure the local content policy helps those who are truly disadvantaged now – not just those who’ve always had access to the system – we need strong, fair and transparent processes,” he told Namibian Sun.
“That means clear criteria for who qualifies, regular checks to see who is benefitting and open ways for people to raise concerns if things go wrong,” he added.
“We also need to include more voices from different communities, not just the same old ones. If we do that, we can give real opportunities to more people, not just a connected few.”
Small elite
EPRA insists that genuine local content must mean more than attaching a “previously disadvantaged Namibians’ face” to foreign suppliers.
Instead, the group said, it should ensure that oil and gas companies procure from Namibian firms that operate in the country, create jobs and retain value domestically.
“Namibians should reject this notion entirely,” EPRA urged, warning against a repeat of policies that fuel elite enrichment rather than broad-based empowerment.
Despite its small population and vast natural resources, Namibia ranks as one of the world’s most unequal countries.
Experts say this is fuelled by historical dispossession, weak redistributive mechanisms, unequal access to the country’s resources and a dual economy that benefits a small elite.
Windhoek
Government’s proposed national upstream petroleum local content policy has come under fire for focusing on previously disadvantaged Namibians rather than currently disadvantaged Namibians – a distinction critics argue will channel oil wealth to the already wealthy and politically connected.
Cabinet officially approved the policy in late 2024, marking a pivotal moment as the country gears up for first oil production, potentially as early as 2029.
In principle, the policy aims to reduce reliance on foreign expertise and boost economic sovereignty and technical capacity, while ensuring the growth of the oil and gas sector benefits local businesses and workers.
Operators must submit periodic reports covering procurement, performance, training and employment. Proposals not aligned with policy intent will be rejected.
But the Economic Policy Research Association (EPRA) has sounded the alarm about ongoing nationwide consultations on the draft policy, accusing government of repeating past mistakes that have excluded the unemployed, rural poor and jobless youth from genuine economic participation.
According to EPRA, the focus on “previously disadvantaged” beneficiaries mirrors earlier empowerment drives such as fishing quotas, mining deals, state loan schemes, the New Equitable Economic Empowerment Framework (NEEEF) and the Investment Promotion Bill.
In each case, they argue, a small inner circle of elites benefitted disproportionately while the broader population was left out.
New generation
of disadvantaged
Previously disadvantaged Namibians are defined by Article 23(2) of the Namibian Constitution and include individuals from racial groups disadvantaged by past discriminatory laws and practices before independence, as well as women and people with disabilities.
This designation is the constitutional basis for affirmative action policies like NEEEF, which aims to redress socio-economic inequality by providing for the advancement of these groups through various empowerment initiatives.
“The 55% of Namibians who are unemployed are the currently disadvantaged. Yet this group will be overlooked, while those who were once poor but are now rich continue to benefit,” the association said.
The organisation warned that the draft oil and gas framework risks creating what it termed “oil-rot”, echoing the Fishrot scandal that shook Namibia’s fishing sector. It cautioned that politically connected middlemen without technical expertise could once again position themselves as fronts for foreign companies, extracting huge fees without providing real goods or services.
New voices
Social welfare academic and public intellectual Dr Ndumba Kamwanyah said the concerns raised by EPRA are valid, urging government to get this policy right.
“To make sure the local content policy helps those who are truly disadvantaged now – not just those who’ve always had access to the system – we need strong, fair and transparent processes,” he told Namibian Sun.
“That means clear criteria for who qualifies, regular checks to see who is benefitting and open ways for people to raise concerns if things go wrong,” he added.
“We also need to include more voices from different communities, not just the same old ones. If we do that, we can give real opportunities to more people, not just a connected few.”
Small elite
EPRA insists that genuine local content must mean more than attaching a “previously disadvantaged Namibians’ face” to foreign suppliers.
Instead, the group said, it should ensure that oil and gas companies procure from Namibian firms that operate in the country, create jobs and retain value domestically.
“Namibians should reject this notion entirely,” EPRA urged, warning against a repeat of policies that fuel elite enrichment rather than broad-based empowerment.
Despite its small population and vast natural resources, Namibia ranks as one of the world’s most unequal countries.
Experts say this is fuelled by historical dispossession, weak redistributive mechanisms, unequal access to the country’s resources and a dual economy that benefits a small elite.
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