Namibia Prepares for Oil Industry Boom, But Questions Remain on Local Benefits

Namibia is on the cusp of an oil industry boom, with international companies spending millions of dollars on exploration. The government is putting policies in place to ensure that Namibians benefit when commercial production begins. However, there is a pressing question that needs attention: who will actually make money from the oil boom? The business opportunities will extend far beyond drilling, with oil companies needing ships, transport, engineering services, equipment, construction, catering, accommodation, and hundreds of other supplies.

The Namibian government has begun putting rules in place to increase local participation in the oil industry. On 4 August 2026, Cabinet approved the National Upstream Petroleum Local Content Policy, which seeks to increase Namibian ownership, employment, procurement, and skills development in the petroleum industry. Vice President Lucia Witbooi urged oil companies to involve local businesses from the early stages of their projects, emphasizing the need for early identification of procurement opportunities, transparent contracting processes, and meaningful training programs.

TotalEnergies has provided one indication of the money already entering the local supply chain, stating that it has spent more than US$141 million (approximately N$2.32 billion) on Namibian goods and services since 2022. Its direct supplier base has grown from eight to 62 businesses. However, important questions remain unanswered, such as who the 62 suppliers are, how many are owned by Namibians, what contracts they have secured, and how much money has actually reached locally owned businesses.

A company registered in Namibia is not necessarily Namibian-owned, and not every dollar spent locally remains in the country. Some businesses may be foreign-owned, while others may rely heavily on imported equipment and services. The distinction matters, as Namibia needs to know whether its oil industry is creating local businesses or simply creating more work for international suppliers operating through local offices.

The first Industry Baseline Study, conducted by Deloitte Namibia in 2024, found considerable interest among local businesses, with about 80% of 254 suppliers surveyed expressing interest in entering the oil and gas industry. However, the study identified 218 occupations required by the industry, with only 143 available locally. A second Industry Baseline Study, IBS 2.0, was launched on 3 November 2026, to provide updated information on supplier capacity, workforce requirements, and opportunities for Namibian businesses.

Economic Association of Namibia chairperson Jason Kasuto advises businesses to become bankable and finance-ready, as growth in the industry will come quickly and not wait for local businesses to prepare. Access to finance remains a major concern, with small businesses often unable to raise the necessary money on their own. Local banks and development finance institutions need to consider how to finance companies with credible business plans and the potential to supply the petroleum industry.

Namibia can learn from countries that have developed petroleum industries, such as Nigeria, where companies are encouraged to work together rather than compete individually for every opportunity. Partnerships with experienced African companies could provide access to technology, expertise, and capital while helping local firms build their own capabilities. The goal should be to develop companies that can compete beyond Namibia, not businesses that depend entirely on one oil project.

Key points

• The Namibian government has approved the National Upstream Petroleum Local Content Policy to increase local participation in the oil industry.
• TotalEnergies has spent over US$141 million on Namibian goods and services since 2022.
• Local businesses need to become bankable and finance-ready to benefit from the oil industry boom.