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Oil, Gas and the governance challenge: Are Namibia’s institutions up to the task?

by reporter
October 17, 2025
in Latest
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By Martha Haipinge

Namibia is beaming with excitement over the anticipated oil and gas discoveries. These resources could shift our economy, create jobs, and ease the fiscal strain the country has carried for years.

But beneath the promise lies a bigger question, one that goes beyond oil, revenue, or investment. It is a question of governance.

How Namibia manages this new sector will determine whether our institutions are strong enough, our systems disciplined enough, and our leadership steady enough to turn opportunity into shared benefit. Oil and gas will not only change our economy; they will test our governance maturity.

A mirror to the State: Public Enterprises as a Reflection of Institutional Strength and Weakness

For years, our Public Enterprises (PEs) also known as State Owned Enterprises (SOEs) have reflected how we govern. Many of them were created with the right intentions, they were established to serve as instruments for implementing public policy objectives such as service delivery, industrialization, and equitable sustainable development. Yet, time and again, we have seen familiar problems ranging from alleged political interferences, blurred mandates, weak oversight, questionable procurement, and at times, unaccountable boards.

The result has been mixed performance and public frustration with only a few PEs profitable, while many rely on state subsidies to stay afloat. These patterns matter because they don’t stay confined to one part of government. The same governance culture that shapes our Public Enterprises, if unchecked, will shape how we manage the oil and gas sector. So, an important question we need to ask ourselves is; if accountability proved difficult when stakes were modest, how will our systems hold up when the figures run into billions, and when powerful external investors, multinational companies, and global markets are part of the equation?.

A Test of Maturity: What Will the Oil and Gas Era Reveal About Namibia’s Governance

The oil and gas sector will test Namibia in several ways.

  • Independence: Can regulatory and administrative decisions, on licensing, contracts, and oversight, be made on merit, free from political or commercial pressure?
  • Transparency: Will contracts, licensing information, and revenues be shared openly with citizens?
  • Accountability: How will ministries, regulators, and oversight bodies ensure that public interest comes before personal or political interest?
  • Capability: Do we have the skills, systems, and ethical grounding within the public sector to handle the complexity that comes with extractive industries?

These are not new questions; they echo across the wider public sector. But the stakes are higher now. This is no longer about administrative lapses; it’s about how Namibia defines integrity in public life.

What Can We Learn from Others?

Across Africa, there are examples that remind us of what is possible, and what to avoid.

Ghana’s decision to make oil revenues traceable through a clear legal framework built public trust. Botswana’s approach to diamond management showed how discipline and planning can turn natural wealth into long-term national benefit.

On the other hand, countries that rushed into extraction before strengthening their institutions paid the price, corruption, inequality, and loss of public confidence.

Namibia does not need to copy anyone. But we can learn one clear lesson and that is: governance systems must evolve before the money starts flowing, not after.

Lessons from Our Own Public Sector

When we look closely at our public sector, three simple truths stand out.

  • First, clarity of roles is everything. When institutions overlap or compete for the same space, accountability becomes blurred, and performance suffers.
  • Second, transparency must become habit, not obligation. Publishing a report is not enough if the culture within the public service still sees openness as a risk rather than a responsibility.
  • Third, accountability is more than compliance. It is the willingness to explain decisions, face scrutiny, and learn from mistakes. That spirit is what separates systems that grow from those that collapse under pressure.

These lessons are not about oil alone; they are about how we govern as a nation.

The Culture Question

At the heart of it all is governance culture. Laws and policies matter, but they only work when institutions and people take them seriously. The oil and gas era will demand not only strong regulations, but also a public service ethic grounded in honesty, stewardship, and pride in doing things right.

If we can build that culture, where openness is expected, competence rewarded, and public trust protected, Namibia’s oil and gas story could become one of institutional renewal, not decline.

In closing, Oil and Gas may change our balance sheet, but the real story will be how they change the way we govern. The promise is real, but so is the test. What happens next will depend less on what we find beneath the ground, and more on what we build above it, institutions that can stand firm, even when the money starts to flow.

*Martha Haipinge is a Namibian governance, peace, and development expert with extensive experience in public policy, institutional reform, and international cooperation across Africa, including Sudan (Darfur), the Democratic Republic of Congo, Somalia, and Zambia where she currently serves as the Head of the UN Resident Coordinator’s Office and Development Coordination. She holds an MPhil in Development Policy and Practice from the University of Cape Town and a Master of International Business from Namibia University of Science and Technology. She is currently pursuing a PhD in Public Administration at the University of Namibia. She writes here in her personal capacity.

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