Windhoek, May 31: The Namibian government is set to implement a state-coordinated petroleum import system by the end of September. This initiative aims to reduce fuel costs and enhance the efficiency of the country’s fuel supply chain, as announced by the Ministry of Industrialization, Mining, and Energy.
Minister of Industrialization, Mining, and Energy, Tom Alweendo, stated that the government is in the advanced stages of finalizing the Bulk Petroleum Import Coordination Regulations. Once these regulations are enacted, the government will oversee all petroleum product imports in the country. According to the news agency Xinhua, Alweendo noted that these reforms are expected to lower import costs by integrating national demand, achieving bulk purchasing benefits, and eliminating additional fees imposed on the base fuel price.
Alweendo highlighted that Namibia is under pressure from rising global oil prices due to geopolitical tensions in the Middle East. To shield consumers from escalating oil prices, the government has pledged over one billion Namibian dollars (approximately 62 million US dollars).
He remarked, “The emergency we face is not about supply but cost.” He warned that without intervention, fuel prices could surge rapidly from July, impacting transportation, food, and other essential goods.
If conditions in the international oil market remain challenging, the government may invite suppliers to participate in future procurement rounds under the coordinated import framework.
Namibian President Hage Geingob stated on April 15 that the country is advancing reforms to strengthen governance in its oil and gas sector and attract investment, as it approaches its first oil production.
Addressing the eighth Namibia International Energy Conference in Windhoek, the president emphasized that the country is entering a significant phase of oil production, where investment, policy stability, and collaboration will be key to long-term economic growth.
He stated, “Partnerships, investment, and efficiency are essential for the initial oil production and the journey thereafter. We must ensure our natural resources translate into inclusive and sustainable development.”
The president also mentioned that the government is continuously working to modernize the country’s petroleum laws and regulatory framework to align with the industry’s evolving needs and national objectives. The pending Petroleum Exploration and Production Amendment Bill in Parliament aims to strengthen governance, enhance transparency, and provide clarity for investors.
Given the strategic importance of the petroleum sector, the upstream petroleum unit has been brought under the president’s office to improve coordination, decision-making, and accountability.
In recent years, Namibia has emerged as a major investment hub for global energy companies following the discovery of several large offshore oil reserves in the Orange Basin. Discoveries by international firms like TotalEnergies, Shell, and Galp Energia have positioned the country as a potential competitive petroleum-producing nation.
The president noted that these discoveries could bring about significant changes in the economy through revenue growth, infrastructure development, industrialization, and job creation.
He also referenced the recently approved Local Content Policy, aimed at ensuring meaningful participation of Namibian citizens through skills development, employment, and business opportunities.
The president assured investors that Namibia is committed to maintaining a stable and predictable investment environment based on good governance, transparency, and accountability.
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