University of Namibia (UNAM) Lecturer Gurvy Kavei suggests that the country’s mining projects should be partially owned by central and regional governments, local authorities, and traditional institutions.
He said this would ensure that the benefits of mineral resources are more effectively distributed to individual Namibians while raising concerns that private ownership often falls short in contributing to infrastructure development and revenue growth.
These remarks were delivered at a public discussion hosted by the Economic Association of Namibia (EAN), in partnership with FNB Namibia and the Hanns Seidel Foundation Namibia.
The event’s theme was “Optimising Economic Returns: The Role of Critical Minerals.”
Kavei noted that Namibia should focus on including these institutions as critical participants in the beneficiation process.
“Central government, regional governments, local authorities, and traditional authorities could all have shares in mining projects. These institutions can more effectively translate the benefits down to individual Namibians, unlike private individuals who may not contribute significantly to infrastructure development or revenue,” he said.
Kavei commended the government for its clear mining policy covering the entire value chain from prospecting to distribution.
However, he highlighted the need for stronger institutional involvement in the sector.
“We have made considerable efforts to integrate Namibians into the mainstream mining sector. Unfortunately, the disappointing result is that many of those given this opportunity have ended up trading their licences to foreigners. In the end, the only person who benefits is the licence holder, while Namibia as a whole does not see substantial benefits,” he added.
The lecturer also emphasised the importance of building robust institutions that can participate effectively in the mining sector, ensuring that the benefits of Namibia’s mineral wealth are more broadly distributed.
FNB’s head of Specialised Finance Lending, Franco Labuschagne, said the impact of mining on the social aspect of a community should be viewed in the long term.
“It’s about how you impact these communities. The responsibility lies with us and policymakers to ensure sustainability in our investments in an area,” he said.
He emphasised the importance of investing in smart villages, adding that this immediate yet strategic investment needs to focus on long-term benefits beyond mere financial injections.
“Speaking about smart villages, which is an immediate investment that can have a long-term impact, we need to consider more than just injecting money into these areas. We need to focus on the actual impact that will leave a lasting effect. This includes education and providing resources that the community can continue to build on long into the future,” he said.
This comes as Namibia boasts significant deposits of critical metals including uranium, diamonds, rare earth elements, lithium, copper, lead, zinc, gold, and tungsten.
These resources are vital for various industries such as nuclear energy, electronics, renewable energy, and manufacturing, positioning Namibia as a key player in the global mineral market and driving economic growth in the country.
