Namibia Prioritizes Oil Refinery Plans to Maximize Energy Gains-☕ # ISSUE 36

Here’s a quick look at the top stories you can expect in Friday’s issue:

• President Nandi-Ndaitwah’s State of the Nation Address spotlights challenges and reforms in Namibia’s tertiary education sector.

• Nigerian solar innovator Arnergy secures $18 million to accelerate clean energy access across Africa.

• Namibia’s investment sector grows to N$284 billion, with pension funds leading the way.

• The government fast-tracks plans for a domestic oil refinery to maximize energy value.

• The Namibian Competition Commission (NaCC) approves a wave of high-profile mergers, signaling rising international investment and consolidation.

Stay tuned for in-depth coverage and expert analysis on these major developments.

BUSINESS & FINANCE

Namibia Prioritizes Oil Refinery Plans to Maximize Energy Gains

Namibia’s oil may still be underground but plans to build a major refinery are moving to the top of the government’s agenda. President Netumbo Nandi-Ndaitwah announced that developing downstream capacity and infrastructure—like a refinery—is now central to Namibia’s strategy to maximize the economic benefits of its energy resources and ensure greater local participation in the sector.

Local Value Addition and Investment Appeal

Speaking at the seventh Namibia International Energy Conference, President Nandi-Ndaitwah emphasized that local content isn’t just about upstream activity. “Local content also includes value addition such as developing downstream capacity and infrastructure like a refinery,” she said. Namibia, she added, boasts one of Africa’s most favorable petroleum fiscal regimes, making it an attractive destination for energy investment. The country’s broader goal: to export power, strategic energy commodities, and knowledge partnerships, while promoting regional integration and driving intra-African trade through energy-led industrialization.

Industry Urged to Accelerate Production and Empower Locals

African Energy Chamber executive chairman NJ Ayuk urged Namibia to aggressively pursue its hydrocarbon resources for national development. While acknowledging the global push for decarbonization, Ayuk argued that Africa’s energy gap means all resources must be tapped: “Produce every drop of hydrocarbons you can find and better the life of your people… drill, baby, drill.” However, he stressed that this drive must go hand-in-hand with empowering Namibians and ensuring local content is embedded in every project. “We cannot have an industry where local content is not part and parcel,” Ayuk said, pledging continued support from the African Energy Chamber for Namibia’s ambitions.

Refinery Project Details Unveiled

According to Namibia Mining and Energy, ISF Trading Enterprises plans to build a 300,000-barrels-per-day modular oil refinery at Walvis Bay. The facility will initially process imported crude oil, with a transition to locally sourced crude expected by 2027 or 2028 as Namibia’s own production ramps up. The project includes a crude and petroleum products tank farm, featuring a 12-day crude storage capacity of 573,000 m³ across 12 tanks and a three-day refined product storage capacity of 145,000 m³ across eight tanks, supporting full-capacity operations.

Urgency to Move from Discovery to Production

Ayuk highlighted the need for urgency, citing other African nations where delays hindered progress—Ghana began production just three and a half years after discovery, while Uganda waited 17 years. “There is an urgency to translate discoveries into production,” he said, encouraging Namibia to avoid similar pitfalls.

Conference Theme: Leading the Way

This year’s Namibia International Energy Conference runs under the theme “Leading The Way: Becoming An Energy Hub with In-Country Value,” reflecting the country’s ambitions to become a regional energy leader while ensuring Namibians benefit directly from resource development.

The Bottom Line

Namibia is fast-tracking plans to build its first major oil refinery, aiming to capture more value from its energy resources, attract investment, and empower local communities. With strong government backing and industry support, the country is positioning itself as a future energy hub in Africa.

The Namibian Competition Commission (NaCC) has approved several high-profile mergers

The Namibian Competition Commission (NaCC) has approved several high-profile mergersinvolving foreign entities and Namibian businesses, signaling increased international investment and consolidation across key sectors.

Sports Direct Expands into Southern Africa

British retail and sports giant Sports Direct, through its parent company Frasers Group, received the green light to acquire S and R HoldCo (Pty) Ltd (Holdsport), a diversified group with retail, manufacturing, distribution, and e-commerce operations focused on the sport, outdoor, and recreation sectors in South Africa and Namibia. The transaction, approved without conditions, will see S and R Holdco controlled by Sports Direct, positioning the group to expand its footprint and leverage Holdsport’s established brand network across the region.

Novus Holdings and Mustek Merger

South African-based Novus Holdings Limited, a major player in commercial printing, manufacturing, and packaging, was also cleared to merge with Mustek Limited. Mustek operates in the local IT distribution, service, and support segments. The NaCC found the merger to be a conglomerate transaction unlikely to eliminate effective competition and approved it without conditions.

SQM Australia Invests in Namibia’s Lithium Sector

Australian mining company SQM Australia Pty (Ltd) received approval to acquire a stake in Grace Simba Investments (Pty) Ltd, holder of the Lithium Ridge Mining Licence 133. The deal, structured as a three-stage earn-in agreement, will see SQM invest in exploration and development, potentially earning up to 50% ownership. This move is expected to accelerate lithium exploration and strengthen Namibia’s position in the global battery minerals market.

Other Approved Mergers

• Johannes George was approved to acquire industrial property erf 3955 at Swakopmund, with the transaction not expected to impact employment.

• Walvis Bay Grain Storage (Pty) Ltd, a Namib Mills subsidiary, was cleared to acquire erf 3732 at Walvis Bay to support its food processing and storage operations.

• Alma Terra Mater Investments Namibia received approval to acquire Protek Electronics and its associated property.

• Power House Holdings was authorized to acquire Windhoek Luxury Suites, with the condition that no merger-specific retrenchments occur for three years post-implementation, and all 17 employees are retained on existing terms.

Sectoral Impact and Employment Conditions

While the majority of these mergers were approved unconditionally, the NaCC has shown a pattern of imposing employment protection conditions in cases where jobs could be at risk. For example, in other recent mergers, conditions were set to prevent retrenchments for a minimum period of three years to safeguard employment.

The Bottom Line

These approvals reflect Namibia’s openness to foreign investment and the NaCC’s balanced approach to competition and employment protection. The entry of global brands like Sports Direct and SQM Australia is poised to boost local industries, enhance competition, and foster economic growth, while conditions attached to some deals ensure that employment and local interests remain protected.

Namibia's Investment Sector Holds N$284 Billion, Driven by Pension Funds

Namibia's investment management sector reported robust assets under management, reaching N$284 billion as of December 31, 2024, driven primarily by strong contributions from pension funds, according to the Namibia Financial Institutions Supervisory Authority (Namfisa).

Key Figures:

• Total Assets Under Management: N$284 billion

• Pension Fund Contribution: N$119.6 billion, representing 42.1% of total assets

• Unit Trust Schemes: Accounted for 34.5% of managed assets

• Long-Term Insurers: Contributed 12.8% of managed assets

• Other Sources: Included natural persons, short-term insurers, and other entities, making up the remaining 10.6%

• Asset Growth: The N$284 billion figure represents a 2.4% increase, driven by new capital inflows, interest, and dividend income.

Investment Locations:

• Domestic Investments: 52.1% (N$147.9 billion) remained within Namibia, reflecting a 0.9% quarter-on-quarter increase and an 11.2% year-on-year rise.

• Common Monetary Area (CMA): N$87.2 billion was invested within the CMA, showing a quarterly contraction of 8.1% but a modest year-on-year growth of 2.7%.

• Offshore Investments: 17% of the total portfolio was allocated offshore, with the remaining 0.2% invested in other African markets outside the CMA.

Investment Preferences:

• Listed Equities: Accounted for 30.9% of total assets, with N$87.8 billion invested in the fourth quarter of 2024.

• Unit Trust Schemes: Grew by 11.2% quarter-on-quarter.

• Listed Debt: Declined by 1.4% quarterly and 4.1% year-on-year, settling at N$68 billion.

• Money Market Instruments: Closed the quarter with N$45.8 billion, an annual increase of 37%.

• Unlisted Assets: The remaining 1.3% was allocated to unlisted equity, debt, and property.

The Bottom Line:

Namibia's investment management sector demonstrates continued growth and stability, primarily driven by pension fund contributions and strong domestic investment. The sector's diversified portfolio allocation and preference for local assets support the country's financial ecosystem and long-term economic development.

TECH

Arnergy Secures $18 Million to Supercharge Solar Access Across Africa

Nigerian renewable energy leader Arnergy has closed an $18 million Series B funding round, setting the stage for a major expansion of solar power solutions across the continent. The investment, led by CardinalStone Capital Advisers Growth Fund and joined by British International Investment, Norfund, Breakthrough Energy Ventures, EDFI Management Company, and Shell-backed All On, brings Arnergy’s total capital raised to over $27 million since 2019.

Scaling Clean Energy for Underserved Communities

Arnergy plans to deploy 12,000 additional solar systems by 2029, targeting critical sectors such as healthcare, education, and small and medium-sized enterprises (SMEs). The company’s innovative rent-to-own solar financing model will be expanded, making clean energy more accessible for businesses and households facing unreliable grid access.

Strategic Partnerships and Local Impact

Founded in 2013, Arnergy has already delivered more than 1,800 solar-plus-storage systems, powering homes and businesses in 35 Nigerian states and eliminating over 23,000 metric tonnes of CO₂ emissions. The new funding will also help Arnergy forge strategic partnerships to strengthen its distribution network and increase energy access nationwide.

Investor Confidence in Nigeria’s Energy Transition

The latest investment underscores strong investor confidence in Arnergy’s scalable, decentralized model as a solution to Africa’s energy access gap—where over 600 million people still lack reliable electricity. CEO Femi Adeyemo describes the capital injection as “a strong vote of confidence in Arnergy’s mission to democratize energy access across Africa,” with a focus on enhancing system efficiency and customer experience.

The Bottom Line

Arnergy’s $18 million boost positions the company to accelerate Nigeria’s clean energy transition, drive innovation in solar financing, and deliver reliable, affordable power to thousands more across Africa’s underserved regions

EDUCATION

President Nandi-Ndaitwah Highlights Tertiary Education Challenges and Reforms in Maiden State of the Nation Address

In her first-ever State of the Nation Address delivered on April 24, 2025, President Netumbo Nandi-Ndaitwah placed significant emphasis on the state of Namibia’s tertiary education sector, outlining both its challenges and the government’s strategic plans to revitalize higher education.

Addressing Funding and Access Constraints

President Nandi-Ndaitwah acknowledged that Namibia’s tertiary institutions continue to face funding shortfalls that limit their capacity to expand access and improve infrastructure. She stressed the urgent need to increase investment in universities and vocational training centers to meet the growing demand from Namibia’s youth population.

Focus on Skills Development and Youth Empowerment

Highlighting education as a cornerstone for national development, the president pledged to strengthen programs that align tertiary education with the skills required in the labor market. This includes expanding technical and vocational education and training (TVET) to equip young Namibians with practical skills that enhance employability.

Balancing Budget Priorities

While recognizing the importance of social grants, President Nandi-Ndaitwah explained the government’s decision to defer increases in old-age pensions for the 2025/26 financial year to prioritize youth-focused initiatives, including education infrastructure and empowerment programs. This reflects a strategic choice to invest in the country’s future workforce through improved tertiary education and skills development.

Commitment to Long-Term Education Reforms

The president assured that incremental improvements in social support and education funding will be planned within the medium-term expenditure framework (MTEF) spanning the next three to five years. This approach aims to create sustainable growth in tertiary education capacity while balancing fiscal responsibility.

The Bottom Line

President Nandi-Ndaitwah’s maiden address underscored tertiary education as a national priority, with a clear focus on expanding access, improving quality, and aligning education outcomes with economic needs. Her government’s commitment to investing in youth skills development signals a strategic effort to harness Namibia’s demographic dividend and drive inclusive growth.

Sources: Namibian Parliament, April 24, 2025