Namibia has all but transformed from a low-key market into one of Africa’s hottest investment stories.
Oil discoveries have drawn global attention and green hydrogen has attracted billions of dollars in planned investment. Mining continues to expand and international investors are arriving with confidence and capital.
That is good news. However, more pressing is whether Namibia is preparing for what comes next. And what happens after headlines fade?
Countries are rarely remembered for what they discovered. They are remembered for what they built.
Natural resources alone have transformed very few economies, and history is dotted with countries that exported massive wealth while importing inequality, unemployment and missed industrial opportunities.
Namibia has time to choose a different route. Are we exporting resources or are we building industries?
Significant minerals – including oil, gas and green hydrogen – should never be viewed as separate investment stories. Together, they present Namibia with a once in a generation opportunity to reshape our economy.
Every major investment should strengthen engineering, finance, logistics, local manufacturing, technology and professional services.
Every project should leave behind stronger businesses and competitive industries.
Extraction creates income and industrialisation creates economies. The difference matters.
WHY CARE?
Numerous people assume investors only follow natural resources. They do not.
Investors follow certainty. Hence the search for efficient infrastructure, capable institutions, skilled people, predictable regulation and reliable local suppliers.
Countries that develop these foundations reduce business risks. And it is lower risk that attracts more investment and with more investment comes more opportunities.
Industrialisation is therefore not only good for public policy, it is good for business.
Who should benefit?
The answer should not be limited to multinational companies. Imagine local engineering and insurance firms winning contracts. Imagine small and medium enterprises and big local technology companies developing digital solutions for energy projects.
Imagine manufacturers producing components locally and young entrepreneurs building businesses that become part of the global supply chains.
International University of Management, University of Namibia, Namibia University of Science and Technology and technical and vocational education and training centres producing graduates whose skills are shaped by future industries instead of yesterday’s economies.
That is what successful industrialisation looks like.
THE PRIORITY
The conversation must move beyond attracting investment. The priority should be about maximising investment that necessitates practical action.
Thus the Namibian government should continue strengthening policy certainty and strategic infrastructure, and encourage financial institutions to expand access to capital for businesses capable of joining emerging value chains.
For their part, universities and vocational institutions should align their programmes with the skills demanded by new industries.
Private companies should consciously invest in supply development, local enterprise growth and technology transfer.
Industrialisation is not the responsibility of one institution, it is a product of coordinated leadership.
Very few countries receive immediate opportunities in green hydrogen, oil and gas, or renewable energy. Namibia now faces a real-time test.
The million-dollar question will be: did Namibia build an economy that could compete long after the resources are gone?
That will depend on the choices we make. Countries do not become prosperous because they discover resources, they become prosperous because of what they build with them.
– Maria Namhindo is an energy economist, investment strategist, and adviser specialising in economic policy, investment, and industrial development; marianamhindo@gmail.com. The views expressed here are entirely her own.
