As new oil discoveries continue off the coast of Namibia, authorities are refining their strategy to ensure the economic benefits of this windfall are not limited to multinational corporations.

As commercial oil production nears, with the first barrel expected as early as 2029 from the Venus and Graff fields, Namibia is establishing a framework to turn this windfall into a driver of inclusive development. The country is focused on building an ecosystem to redistribute oil wealth rather than pursuing short-term gains sustainably.

In line with the guidelines of its Sixth National Development Plan, the country has taken actions to reduce national participation in oil projects from 10% to 1% by 2030. The approach goes further, however. The government approved a national Local Content Policy in December 2024 after developing it in 2022.

The framework aims to embed Namibian businesses across the entire value chain, from exploration to specialized services. A $200 million port expansion and logistics hub in Lüderitz is part of this strategy.

Deputy Minister of Petroleum Upstream Kornelia Shilunga says the current legal framework is outdated and prevents the state from fully benefiting. She is calling for a major reform to ensure effective governance, structural transformation, and active Namibian participation. A new Petroleum Code is expected to include specific local content obligations in contracts.

Upstream petroleum is capital intensive, highly technological, and has long development cycles, which historically has generated few local jobs in African producer countries. Namibia wants to avoid those mistakes. Under its new policy, each operator must submit a detailed Local Content Plan, including commitments on subcontracting, local hiring, and training.

The Ministry of Energy will oversee these provisions, emphasizing transparency and predictability for investors.

Youth at the Heart of the Planned Transformation

Youth are central to this strategy. At a recent Youth in Oil and Gas Summit, several officials stressed the need to integrate young people through internships, technical training, and better access to public sector contracts.

To support this vision, Petrofund, a public fund for petroleum training, launched a scholarship program that fully finances technical studies related to the industry in Namibia, within the Southern African Development Community region, and internationally. To date, more than 438 students have received support, with 90% of master’s graduates finding employment.

Petrofund is also strengthening partnerships with national institutions and major industry players like TotalEnergies, Shell, SLB, and TechnipFMC to provide real-world experience. The fund is developing a national oil sector resume database to connect trained youth with employers. These initiatives aim to ensure the sector’s growth translates into real value for Namibians.

For now, redistribution remains largely structural and forward-looking. Everything depends on implementation. The next key steps include finalizing investment decisions by operators, adopting the new legal framework, launching a sovereign wealth fund to manage revenues, and defining a clear budget redistribution strategy.

Olivier de Souza