Only About 10% of Exploration’s N$33 Billion Spent on Locals … local content policy still not finalised

 

By: Nghiinomenwa-vali Erastus

 

Namibia’s burgeoning oil and gas exploration sector, which has attracted investments valued at over N$33 billion between 2021 and 2023, has raised concerns due to its limited contribution to local firms.

Merely 10% of exploration expenditure has benefitted domestic companies, with the bulk of investments flowing abroad.

The oil and gas sector is widely seen as a potential game-changer for Namibia’s economy. However, increasing local involvement and ensuring the country benefits from these developments have proven to be significant challenges.

In response, Namibia is in the process of crafting a Local Content Policy for Upstream Oil and Gas under the auspices of the Ministry of Mines and Energy (MME).