Namibia Pushes for Private Sector Climate Finance as Global Commitments Fall Short - ISSUE #47☕

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NIDA Under Scrutiny: Missed Payments, Abandoned Projects, and Lost Opportunities Raise Concerns

Namibia Pushes for Private Sector Climate Finance as Global Commitments Fall ShortSub-Saharan Africa’s Oil Wealth: A Blessing or a Curse?

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BUSINESS & ECONOMY

NIDA Under Scrutiny: Missed Payments, Abandoned Projects, and Lost Opportunities Raise Concerns

The Namibia Industrial Development Agency (NIDA), established to drive industrial growth and job creation, is facing mounting criticism after a Parliamentary Standing Committee report revealed a pattern of missed payments, stalled projects, and lost investment opportunities.

Mounting Debts and Service Disconnections

According to the committee’s findings, NIDA owes the Keetmanshoop Municipality N$2.4 million for electricity and N$1 million for water. Over the past four years, the agency has made no attempt to settle these debts, resulting in the municipality cutting off essential services. The consequence? The complete shutdown of the !Homs Ai community market project in Keetmanshoop.

The pattern continues elsewhere: NIDA owes the Otjiwarongo Municipality N$150,000 for water, leading to service disconnections at SME parks in Otjiwarongo and Grootfontein. These interruptions have forced some businesses to close and left others struggling to survive.

Abandoned Projects and Idle Assets

The report paints a troubling picture of neglected assets. The Nkurenkuru Garment Factory has seen no activity since 2023, with machinery gathering dust and no clear operational plan in sight. Similarly, the Manjeha Crocodile Farm in the Zambezi region stands deserted—despite the installation of a perimeter fence, vandalism has taken its toll, and there are no signs of progress.

In Otjozondjupa, a biomass project remains idle due to unpaid water bills and ongoing security concerns. “It cannot become operational until NIDA settles its water debt,” the committee notes.

Missed Investment Opportunities

Beyond the issue of debts and abandoned infrastructure, the committee highlights how NIDA’s “delay tactics” have cost Namibia potential foreign investment. In the Oshana region, negotiations with an Italian investor ready to set up a local shoe manufacturing venture collapsed after prolonged delays from NIDA. The investor ultimately withdrew, taking jobs and economic opportunities with them.

Governance and Accountability in Question

The committee’s report is clear: NIDA’s current management model is neither efficient nor effective, leading to wasteful spending of taxpayers’ money. Among its recommendations is the immediate reintegration of NIDA into the Ministry of Industrial Relations and Trade, citing the need for a single supervisory body to ensure proper oversight and accountability.

Ambitious Plans, Uncertain Future

Despite these setbacks, NIDA is pushing forward with its new Turnaround Integrated Strategic Business Plan (ISBP), which aims to create 35,000 jobs over the next five years. CEO Richwell Lukonga describes the ISBP as a “defining moment” for the agency, charting a new course for growth and impact.

However, the agency’s financial health remains a concern. NIDA’s last profitable year was 2020, and it recorded a loss of N$102 million in the 2024 financial year.

The Bottom Line

As Namibia seeks to attract investment and drive industrial development, NIDA’s recent track record raises tough questions about governance, accountability, and the effective use of public funds. With ambitious targets set for the years ahead, the agency faces a critical test: can it turn the page and deliver on its mandate, or will persistent challenges continue to hold back progress?

Source : The Namibian

Namibia Pushes for Private Sector Climate Finance as Global Commitments Fall Short

A recent report from the Standing Committee on Agriculture, Environment and Natural Resources underscores the urgency: despite global pledges, developed countries have consistently underdelivered on climate finance commitments, leaving developing nations like Namibia to bridge the gap.

“We are disappointed by the ongoing shortfall. There must be a more robust and predictable financial mechanism, and it must favour increased grant-based support,” the committee stated, referencing the Paris Agreement’s promise of US$100 billion annually to support climate resilience in the Global South.

Innovative Financing and Legal Reform

The committee is calling on the Ministry of Finance to craft a framework that not only encourages innovative financing but also creates a legal environment conducive to private sector participation. The aim is to unlock new sources of capital for climate mitigation and adaptation—critical as Namibia seeks to scale up its Nationally Determined Contributions (NDCs).

“Our NDCs depend on sustainable and long-term financing. We cannot focus solely on reducing emissions while neglecting the urgent need to adapt to a changing climate,” the report emphasised.

Balancing Adaptation and Mitigation

The committee’s recommendations, tabled in Parliament this week, advocate for a balanced approach to climate finance—one that treats adaptation and mitigation with equal urgency. Namibia is also backing the creation of a clear Global Goal on Adaptation, which would set benchmarks to guide and align global efforts.

Leveraging Carbon Markets and Loss & Damage Funding

A key proposal is to channel proceeds from carbon markets under the Paris Agreement into the Adaptation Fund, supporting vulnerable countries in building climate resilience. With climate-related disasters on the rise across Africa, the committee is also pushing for the operationalisation of the Loss and Damage Fund.

“These disasters are happening now—lives, homes, and economies are being lost. We need new and additional resources, based on the polluter-pay principle,” the report concludes.

The Bottom Line

Namibia is charting a proactive path on climate finance, seeking to unlock private sector capital and advocate for global mechanisms that deliver real, predictable support. As the climate crisis accelerates, innovative financing and strong legal frameworks will be key to

Source: The Namibian

Oil& Gas

Sub-Saharan Africa’s Oil Wealth: A Blessing or a Curse?

Sub-Saharan Africa’s largest oil producers are paradoxically some of the poorest nations on the continent. The root cause? Decades of rent-seeking by political elites and their networks have siphoned off vital oil revenues that could have transformed public services, welfare, and infrastructure.

Many of these damaging practices took hold under authoritarian and military regimes, where oversight institutions were either weak, compromised, or nonexistent. Even as countries like Angola and Nigeria have made democratic advances, entrenched corruption continues to undermine development and deepen inequality.

In these nations, oil wealth often fuels the lavish lifestyles of a small elite, while the majority remain mired in poverty. Public infrastructure is underdeveloped, health and education systems are chronically underfunded, and job opportunities remain scarce. The widening gap between rich and poor is stark, as oil profits vanish into private hands or offshore accounts.

Namibia’s Unique Position and Challenges Ahead

Namibia, with its 35-year democratic history, free press, and active civil society, stands apart. Entering the oil era later than many peers, Namibia has the advantage of learning from others’ mistakes. Yet, despite clear lessons, political will to tackle corruption decisively has been slow to materialize.

There are promising signs under the new administration. President Netumbo Nandi-Ndaitwah has publicly condemned corruption, labeling it an act of treason—a bold stance signaling a potential turning point.

The Fishrot Scandal: A Stark Warning

The Fishrot scandal exposed how opaque systems can be exploited by those in power and their business cronies for personal gain. Beyond individual wrongdoing, it revealed systemic weaknesses in managing state resources and how elite networks operated with impunity for years.

This scandal underscores the urgent need for robust governance frameworks in Namibia’s oil and gas sector to prevent similar abuses.

Transparency as a Game-Changer

One of Namibia’s most effective steps forward would be joining the Extractive Industries Transparency Initiative (EITI). This global standard promotes open and accountable management of oil, gas, and mineral resources.

By adhering to EITI, Namibia would commit to disclosing critical information—contracts, licenses, production data, revenue collection, and allocation—building trust with citizens and investors alike. Transparency deters corruption and fosters a stable investment climate.

Equally important is the full implementation of Namibia’s Access to Information Act, which mandates proactive publication of government licenses, contracts, and permits. Delays or dilution of this law would undermine transparency efforts and public confidence.

Guarding Against Corruption and Ensuring Local Benefits

Protecting Namibia’s oil and gas sector from corrupt actors—both foreign and domestic—is paramount. The Office of the President must exercise caution in appointing advisors, avoiding individuals with histories of corruption or anti-democratic conduct that could erode public trust.

Local content policies, designed to ensure Namibians benefit through jobs, business opportunities, and skills development, must be implemented with vigilance. Without clear procurement rules, transparency, and disclosure of beneficial ownership, these policies risk being manipulated to favor politically connected entities lacking capacity.

A public registry of oil sector suppliers, regular audits, and transparent reporting should become standard practice.

Managing Oil Wealth Responsibly

Namibia’s Welwitschia Fund, established in 2022 as a sovereign wealth fund, aims to safeguard oil revenues for future generations and stabilize the economy during volatility. However, the absence of comprehensive legislation governing the fund’s operation is a critical gap.

Parliament must urgently enact laws defining investment policies, withdrawal rules, and oversight mechanisms. The fund’s governance should include independent experts, with annual public audits to ensure accountability.

Empowering Citizens for Accountability

An informed, engaged citizenry is essential for holding government and companies to account. Civil society, media, and the public need access to information and tools to analyze and act on it.

Educational campaigns and public awareness initiatives can demystify the oil sector, clarify citizens’ rights, and encourage demands for good governance. Digital platforms can enhance access to information and enable citizen feedback.

Collaborations between government, civil society, and the private sector should foster inclusive dialogue and transparency.

A Make-or-Break Moment for Namibia

Namibia stands at a critical crossroads. The long-term benefits of its emerging petroleum sector hinge on the country’s ability to prevent corruption, embed transparency, and empower citizens.

Failing to act decisively risks repeating the mistakes of other oil-rich nations—where wealth enriched a few and impoverished many.

Source: The Namibian

EVENTS

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