Will 2025 be Namibia’s investment nirvana?

Will 2025 be Namibia’s investment nirvana?

Namibia is positioning itself as a key player in Africa’s energy landscape.

By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine     

Namibia is regarded by many pundits as the energy hotspot of Africa. While the country is gearing up to welcome more investors next year, and with a deluge of projects expected to come online in 2025, the people of Namibia should start seeing progress within the next year.

Namibia’s rich natural resources, commitment to renewable energy, the massive potential of its oil, gas and uranium deposits and its strategic location within the Southern African power grid, makes Namibia one of the most attractive investment destinations in Africa.

According to Tom Alweendo, Minister of Mines and Energy of Namibia, African nations must safeguard their socio-economic advantages from ongoing oil and gas operations.

“Namibia is doing this by ensuring its policies are geared towards encouraging investment and that the country maintained a stable economy and efficient legal framework,” Alweendo says.

“Namibia is working closely with energy companies to fast-track delivery, and we need all stakeholders to embrace the challenge to build an African energy sector that is not only economically robust but environmentally responsible,” Alweendo adds.

The race for oil and gas

With over 11 billion barrels of reserves discovered in the country’s Orange Basin since 2022 the race is on for the first oil production in Namibia with appraisal drilling by TotalEnergies, Shell and Galp Energia. The  National Petroleum Corporation of Namiba (Namcor) is also planning to drill three oil and gas wells by the first quarter of 2025.

According to Victoria Sibeya, Executive: Exploration Upstream, the wells are aimed at understanding the continuity of hydrocarbon flow from recent discoveries, as well as finding new ones.

Maggie Shino, Petroleum Commissioner of Nambia’s Ministry of Mines and Energy tentative says that first oil could be produced by 2029, but adds that it could even be sooner.

The volume of gas discovered has also increased, and Namibia is looking at its gas potential and how to valorise it.

Selma Shimutwikeni CEO of RichAfrica Consultancy, an industry advisor, says that local content across the value chain is at the heart of Namibia’s energy strategy.

“Local content is the key to unlock the potential of the industry and ensure that it is a catalyst for shared growth and prosperity for Namibia’s three million people.

“We are well positioned in Southern Africa to cater not only for our own needs but for the region as well. We can be the next energy hub in Southern Africa. To do this we need strategic partnerships between local and international companies and to ensure that the Namibians participate.”

Exceptional solar and wind potential

Namibia recently launched its International Energy Agency (IEA) report on the country’s renewable energy mix. According to the new report, Namibia offers exceptional solar and wind energy potential, with significant year-round sunlight and substantial wind speeds in key areas.

This, combined with low seasonal variability and population density, positions Namibia as an ideal location for large-scale renewable energy projects.

Accelerating the deployment of these renewable energy sources could offer transformative benefits for Namibia’s power sector – reducing the country’s reliance on electricity imports, improving energy security and lowering costs for consumers.

Namibia enjoys some of the highest solar radiation levels in the world, making it an ideal location for solar energy generation. The country is able to harness significant amounts of solar energy, with potential to produce vast amounts of electricity. This has attracted significant investment in solar power plants.

Namibia’s geographical location in Southern Africa gives it access to significant energy markets across the region.

As one of the more stable countries in the region, Namibia is seen as a reliable energy supplier for neighbouring nations facing energy shortages. The Southern African Power Pool (SAPP) enables Namibia to be a part of a regional electricity grid, further expanding its energy export capacity.

Will 2025 be Namibia’s investment nirvana?