NAMBIA is exploring the possibility of acquiring minority stakes in mining and petroleum production companies as concerns grow regarding the local ownership of valuable resources. The move aims to ensure that the state has a stake in the ownership of natural resources, according to Mines and Energy Minister Tom Alweendo.
‘We are making a case that local ownership must start with the state, which holds ownership of our natural resources,’ Minister Alweendo stated during a session with lawmakers on Monday. He further explained, ‘The proposed State ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay.’
Namibia is renowned for being one of Africa’s major producers of diamonds and the largest producer of uranium. In February, Impact Oil & Gas announced a multiwell drilling programme
in collaboration with TotalEnergies, which had made an offshore oil discovery in Namibia the previous year.
The arid nation in southwest Africa is following the footsteps of other countries like Zimbabwe, Brazil, Chile, Indonesia, the Philippines, and Peru, which are seeking to derive more value from their mineral resources or considering increased state intervention, partly driven by higher commodity prices.
Namibia is also considering the establishment of a minerals exploration fund, potentially financed by a portion of the royalties paid by mining and petroleum companies to the state. Minister Alweendo revealed that the fund’s purpose would be to support local entrepreneurs who wish to invest in the mining sector.
These measures highlight Namibia’s efforts to enhance local control and derive greater benefits from its mineral and petroleum wealth, promoting economic empowerment and fostering sustainable development within the country.
