Who will make money from Namibia’s oil boom?

Billions of dollars are being committed to offshore exploration, but the question of how much Namibian businesses will earn from the industry remains largely unanswered.

Elvis Mboya

Namibia is preparing for an oil industry that could change the country’s economy. International companies are spending millions of dollars on exploration.

The government is putting policies in place to ensure that Namibians benefit when commercial production begins.

But there is a question that deserves more attention: who will actually make money from the oil boom?

The business opportunities will extend well beyond drilling. Oil companies need ships, transport, engineering services, equipment, construction, catering, accommodation and hundreds of other supplies. They also need lawyers, accountants, insurers and financial institutions.

For Namibian companies, these contracts could open doors to a new market. But securing them will not be easy. The industry demands substantial capital, specialised skills, equipment and strict international standards.

The concern is whether local businesses will be ready to compete when the major contracts are awarded.

Government wants a bigger local share

The government has begun putting rules in place to increase local participation.

On 4 August 2026, Cabinet approved the National Upstream Petroleum Local Content Policy. It seeks to increase Namibian ownership, employment, procurement and skills development in the petroleum industry.

Speaking at the Namibia Oil and Gas Conference in August, Vice President Lucia Witbooi, delivering a statement on behalf of President Netumbo Nandi-Ndaitwah, urged oil companies to involve local businesses from the early stages of their projects.

“Early identification of procurement opportunities, transparent contracting processes, meaningful training programmes, technology transfer, mentorship, secondments and supplier development must become part of project planning from the outset,” Witbooi said.

The clear message is that Namibian businesses should not be brought in only after major contracts have already been awarded.

Kornelia Shilunga, Special Adviser and Head of the Upstream Petroleum Unit in the Office of the President, said successful implementation would require cooperation between government, petroleum operators, contractors and local businesses.

The policy is an important step. However, its impact will depend on how the government enforces it and whether local companies secure actual business.

N$2.3 billion spent, but who benefited?

TotalEnergies has provided one indication of the money already entering the local supply chain.

The company says 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.

At a suppliers’ workshop in April, Veronica Mungonena, TotalEnergies’ Lead for Contracts, Procurement, Engineering and Local Content, said: “To date, we have spent over US$141 million on local goods and services, and about 10% of our expenditure so far has been directed towards local suppliers.”

The figures are significant, but they leave important questions unanswered.

Who are the 62 suppliers? How many are owned by Namibians? What contracts have they secured? How much money has actually reached locally owned businesses?

A company registered in Namibia is not necessarily Namibian-owned. Nor does every dollar spent locally remain in the country. Some businesses may be foreign-owned, while others may rely heavily on imported equipment and services.

The distinction matters. Namibia needs to know whether its oil industry is creating local businesses or simply creating more work for international suppliers operating through local offices.

Can local companies compete?

The first Industry Baseline Study, conducted by Deloitte Namibia in 2024, found considerable interest among local businesses.

Of the 254 suppliers surveyed, about 80% expressed interest in entering the oil and gas industry. But interest is only the starting point.

The study identified 218 occupations required by the industry. Only 143 were available locally. The remaining 75 had no identified local skills match.

It also highlighted gaps in equipment, technical expertise, certification and health and safety compliance.

A second Industry Baseline Study, IBS 2.0, was launched on 3 November 2026.

It is expected to provide updated information on supplier capacity, workforce requirements and opportunities for Namibian businesses.

The findings will be important. They should help establish what local companies can supply now and what investment they need to compete for bigger contracts.

For Economic Association of Namibia chairperson Jason Kasuto, businesses cannot afford to wait until the industry is fully operational before preparing.

“When the growth comes, it comes fast and it does not wait,” he said at the Namibia Oil and Gas Conference.

His advice to businesses was equally direct.

“Become bankable. Finance follows paperwork, it does not follow your passion,” Kasuto said.

Access to finance remains a major concern. A company seeking an offshore supply contract may need expensive equipment, insurance, specialised employees and working capital.

Many small businesses cannot raise that money on their own.

This is where local banks and development finance institutions need to come into the discussion. They must consider how to finance companies with credible business plans and the potential to supply the petroleum industry.

Lessons from other African producers

Namibia can also learn from countries that have developed petroleum industries.

Felix Ogbe, Executive Secretary of Nigeria’s Content Development and Monitoring Board, has encouraged African companies to work together rather than compete individually for every opportunity.

“If all these companies can come together and form a consortium and bid for projects together, it is possible to localise across Africa,” Ogbe said at the Namibia Oil and Gas Conference.

His proposal raises an important possibility for Namibian businesses. 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.

The money must stay in the economy

Minister of industries, mines and energy Modestus Amutse has argued that local content should support investment rather than discourage it.

“Local content, properly done, is not a tax on your investment. It is the durability of it,” Amutse said in his August 2026 ministerial address. He also told investors: “Namibia does not move goalposts.”

That assurance is important for companies making long-term investment decisions. But predictability must go hand in hand with accountability.

The government needs to publish information showing which companies receive major contracts, their ownership structures and the value of business awarded to Namibian suppliers.

It must also guard against fronting, where local names are used to qualify foreign-controlled companies for business reserved for Namibians.

The oil industry should create more than export earnings and government revenue. It should help build businesses in marine services, engineering, manufacturing, logistics and other sectors.

Namibia has a chance to use the industry to expand its private sector. But that will require more than policies and conference commitments. Local companies need finance, skills, equipment and access to real procurement opportunities.

For now, one important question remains unanswered: how much of the money already being spent by oil companies is reaching genuinely Namibian-owned businesses?

That is a question the government and the petroleum operators should be prepared to answer.

Namibia may be on the way to becoming an oil producer. Whether it also becomes home to a strong oil-services industry will depend on who gets the contracts, who owns the companies and where the money ultimately goes.