Shaningwa blasts govt’s 10% stake in mines

Swapo Secretary General Sophia Shaningwa has called for an end to the government’s current policy of holding a 10% stake in mining and energy operations, describing it as inadequate for driving meaningful national development.Speaking during the ministry of mines and energy’s budget motivation in Parliament last week, Shaningwa said the existing model limits the country’s economic potential and fails to empower state-owned enterprises.“The issue of 10% shareholding in any mining sector must end,” she said. “Ten percent cannot work for the development of the country.”Her remarks come as the Chamber of Mines of Namibia develops a revised tax model to address the government’s proposed free carry shareholding in mining companies. Currently, only the National Petroleum Corporation of Namibia (Namcor) is mandated to hold a 10% stake in all oil and gas projects. Epangelo Mining, the state-owned mining company, must source its own funding to acquire shares in mining ventures.Shaningwa also criticised the ongoing export of unprocessed raw minerals, arguing that it stifles job creation and economic growth. “We should try by all possible means to turn our raw materials, our stones, into bread. The mining sector is one of the biggest contributors to our GDP. Let it truly benefit our people,” she said.She urged government to reposition Epangelo Mining as a flagship for local mineral beneficiation. “Let us upstage our own state company and allow it to fully participate in this sector,” she added, emphasising that domestic processing would increase employment and enhance economic self-sufficiency.‘Let’s start now’Deputy prime minister and minister of industrialisation and trade Natangue Ithete expressed openness to policy reform, saying it was time to act.“If we need to revise our policy, let’s do it. We’ve received the marching orders from the Head of State,” he said. “Let’s bring forward proposals and lead this change together so that one day, our children can smile. And when should we start? We should have started as early as yesterday. So let’s start now.”The government’s free carry shareholding policy was first announced in March 2023 by then Mines Minister Tom Alweendo, with further elaboration during a mining engagement in Swakopmund that June. According to the 2024 Mining Industry Review Report, such a model would compel mining companies to finance the government’s equity, thereby increasing their operating costs.Chamber developing a new modelFollowing pushback, the Chamber of Mines classified the proposal as a taxation matter and initiated technical consultations involving the Executive Directors of the Ministries of Finance and Mines and Energy.A key meeting in July 2024 confirmed the ministry’s intention to formally introduce a 10% free carry requirement. The Chamber’s Tax Committee has since been working on a revised tax framework that could incorporate the proposal without deterring investment.Analysts: Time for stronger state rolePolitical analysts have welcomed Shaningwa’s stance, arguing that a greater government stake could improve developmental outcomes.“A 10% share is too small to significantly benefit the country. A 50/50 model could ensure better returns, more control over resources, and greater developmental impact,” said analyst Ndumba Kamwanyah. “It may also strengthen public support and national pride, though it could deter some investors. The key will be government capacity and transparency.”Another analyst, Joshua Mario, said Namibia should leverage its natural resources more effectively. “Investor interest remains high. There will always be those who support a genuine win-win approach,” he said. “We can’t remain reliant on investors unwilling to empower the nation. Infrastructure and human capital challenges are real, but not insurmountable. We have skilled Namibians abroad who can be brought back to contribute. Increasing the government’s stake carries long-term national benefits.”

Shaningwa blasts govt’s 10% stake in mines

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Namibian Sun 2025-07-01

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Shaningwa blasts govt’s 10% stake in mines

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Namibian Sun 2025-07-01

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