Namibia prepares for oil production amid massive foreign investment

Namibia is intensifying preparations for its upcoming oil and gas production to ensure economic stability and local integration. The oil and gas industry has already attracted approximately N$74.4 billion in foreign direct investment (FDI) between 2021 and 2025, accounting for roughly 56% of total inflows into the country.

Bank of Namibia Governor Ebson Uanguta emphasized the need to strengthen macroeconomic forecasting and financial stability monitoring. He noted that large investment inflows and future petroleum exports could impact inflation, the balance of payments, and economic growth. The central bank is also working to enhance staff capabilities to manage emerging risks such as foreign-currency and project concentration.

To maximize domestic benefits, Industries, Mines and Energy Minister Modestus Amutse called for closer coordination between the government and financial institutions to help local businesses access the financing necessary to participate in the petroleum value chain.

In a related development, Namibia has awarded a TotalEnergies-led consortium a bulk fuel supply contract for 345.3 million liters of fuel from November 2026 to January 2027. This deal, which follows the end of an exclusive arrangement with Vitol, is expected to save the government approximately $13.5 million.