Oil, gas and the governance challenge: Are Namibia’s institutions up to the task?
Namibia is brimming with excitement over its anticipated oil and gas discoveries. These resources could transform our economy, create jobs, and ease the fiscal strain the country has endured for years. Yet beneath the promise lies a deeper question—one that goes beyond revenue, investment, or production. It is a question of governance.
How Namibia manages this new sector will reveal whether our institutions are strong enough, our systems disciplined enough, and our leadership steady enough to turn opportunity into shared benefit. Oil and gas will not only reshape our economy; they will test our governance maturity.
A mirror to the state: Public enterprises as a reflection of institutional strength and weakness
For years, our public enterprises—also known as state-owned enterprises (SOEs)—have reflected how we govern. Many were established with noble intentions: to implement public policy goals such as service delivery, industrialisation, and equitable development. Yet, time and again, familiar problems have emerged—political interference, blurred mandates, weak oversight, questionable procurement practices, and at times, a lack of accountability.
The result has been mixed performance and growing public frustration. Only a handful of SOEs are profitable, while many survive on state subsidies. These patterns matter because they are not isolated. The same governance culture that shapes our SOEs will shape how we manage the oil and gas sector.
If accountability has been elusive when the stakes were modest, how will our systems hold up when billions are at play, and when powerful investors, multinational corporations, and global markets enter the equation?
A test of maturity: What the oil and gas era will reveal about Namibia’s governance
The emerging oil and gas sector will test Namibia in several key areas:
• Independence: Can regulatory and administrative decisions—on licensing, contracts, and oversight—be made on merit, free from political or commercial pressure?
• Transparency: Will contracts, licensing information, and revenues be disclosed openly to citizens?
• Accountability: How will ministries, regulators, and oversight bodies ensure that public interest prevails over personal or political gain?
• Capability: Do we possess the skills, systems, and ethical grounding within the public sector to handle the complexity of extractive industries?
These are not new questions—they echo across the broader public sector. But the stakes are now higher. This is no longer about administrative lapses; it’s about how Namibia defines integrity in public life.
Learning from others
Across Africa, there are valuable lessons—both cautionary and inspiring.
Ghana, for instance, built public trust by ensuring oil revenues were traceable through a clear legal framework. Botswana’s disciplined management of diamond wealth turned natural resources into long-term national benefit.
Conversely, countries that rushed into extraction before strengthening their institutions paid the price—through corruption, inequality, and a loss of public confidence.
Namibia need not copy anyone, but one lesson stands out clearly: governance systems must evolve before the money starts flowing, not after.
Lessons from our own public sector
Three truths stand out when we examine our public sector:
1. Clarity of roles is crucial. When institutions overlap or compete for the same space, accountability blurs and performance declines.
2. Transparency must become habit, not obligation. Publishing a report is not enough if the culture within the public service views openness as a risk rather than a duty.
3. Accountability is more than compliance. It requires a willingness to explain decisions, face scrutiny, and learn from mistakes. That spirit separates systems that evolve from those that collapse under pressure.
These lessons apply beyond oil—they speak to how we govern as a nation.
The culture question
At the heart of everything lies governance culture. Laws and policies matter, but they only work when institutions and people take them seriously. The oil and gas era will demand not only strong regulations but also a public service ethic rooted in honesty, stewardship, and pride in doing things right.
If we can build a culture where openness is expected, competence rewarded, and public trust protected, Namibia’s oil and gas story could become one of institutional renewal—not decline.
Oil and gas may change our balance sheet, but the real story will be how they change the way we govern. The promise is real, but so is the test. What happens next will depend less on what we find beneath the ground, and more on what we build above it—institutions that can stand firm even when the money starts to flow.
* Martha Haipinge is a Namibian governance and development expert with extensive experience in public policy and institutional reform across Africa. She currently serves as Head of the UN Resident Coordinator’s Office and Development Coordination in Zambia and is pursuing a PhD in Public Administration at the University of Namibia. She writes here in her personal capacity.
How Namibia manages this new sector will reveal whether our institutions are strong enough, our systems disciplined enough, and our leadership steady enough to turn opportunity into shared benefit. Oil and gas will not only reshape our economy; they will test our governance maturity.
A mirror to the state: Public enterprises as a reflection of institutional strength and weakness
For years, our public enterprises—also known as state-owned enterprises (SOEs)—have reflected how we govern. Many were established with noble intentions: to implement public policy goals such as service delivery, industrialisation, and equitable development. Yet, time and again, familiar problems have emerged—political interference, blurred mandates, weak oversight, questionable procurement practices, and at times, a lack of accountability.
The result has been mixed performance and growing public frustration. Only a handful of SOEs are profitable, while many survive on state subsidies. These patterns matter because they are not isolated. The same governance culture that shapes our SOEs will shape how we manage the oil and gas sector.
If accountability has been elusive when the stakes were modest, how will our systems hold up when billions are at play, and when powerful investors, multinational corporations, and global markets enter the equation?
A test of maturity: What the oil and gas era will reveal about Namibia’s governance
The emerging oil and gas sector will test Namibia in several key areas:
• Independence: Can regulatory and administrative decisions—on licensing, contracts, and oversight—be made on merit, free from political or commercial pressure?
• Transparency: Will contracts, licensing information, and revenues be disclosed openly to citizens?
• Accountability: How will ministries, regulators, and oversight bodies ensure that public interest prevails over personal or political gain?
• Capability: Do we possess the skills, systems, and ethical grounding within the public sector to handle the complexity of extractive industries?
These are not new questions—they echo across the broader public sector. But the stakes are now higher. This is no longer about administrative lapses; it’s about how Namibia defines integrity in public life.
Learning from others
Across Africa, there are valuable lessons—both cautionary and inspiring.
Ghana, for instance, built public trust by ensuring oil revenues were traceable through a clear legal framework. Botswana’s disciplined management of diamond wealth turned natural resources into long-term national benefit.
Conversely, countries that rushed into extraction before strengthening their institutions paid the price—through corruption, inequality, and a loss of public confidence.
Namibia need not copy anyone, but one lesson stands out clearly: governance systems must evolve before the money starts flowing, not after.
Lessons from our own public sector
Three truths stand out when we examine our public sector:
1. Clarity of roles is crucial. When institutions overlap or compete for the same space, accountability blurs and performance declines.
2. Transparency must become habit, not obligation. Publishing a report is not enough if the culture within the public service views openness as a risk rather than a duty.
3. Accountability is more than compliance. It requires a willingness to explain decisions, face scrutiny, and learn from mistakes. That spirit separates systems that evolve from those that collapse under pressure.
These lessons apply beyond oil—they speak to how we govern as a nation.
The culture question
At the heart of everything lies governance culture. Laws and policies matter, but they only work when institutions and people take them seriously. The oil and gas era will demand not only strong regulations but also a public service ethic rooted in honesty, stewardship, and pride in doing things right.
If we can build a culture where openness is expected, competence rewarded, and public trust protected, Namibia’s oil and gas story could become one of institutional renewal—not decline.
Oil and gas may change our balance sheet, but the real story will be how they change the way we govern. The promise is real, but so is the test. What happens next will depend less on what we find beneath the ground, and more on what we build above it—institutions that can stand firm even when the money starts to flow.
* Martha Haipinge is a Namibian governance and development expert with extensive experience in public policy and institutional reform across Africa. She currently serves as Head of the UN Resident Coordinator’s Office and Development Coordination in Zambia and is pursuing a PhD in Public Administration at the University of Namibia. She writes here in her personal capacity.
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