Imelda Ambondo
Bank of Namibia governor Ebson Uanguta said recent oil and gas discoveries will bring “significant structural change” to the country’s economy, as the central bank works to modernise in a rapidly evolving financial landscape.
The discoveries in Namibia’s offshore Orange Basin, including the Mopane and Venus fields, are estimated to contain over 10 billion barrels of oil, with potential government revenues of more than N$100 billion (about US$5.6 billion) per year at peak production.
In an interview with Namibia Business Review last week, Uanguta said one of his key priorities since taking office is to ensure the central bank aligns itself with the country’s evolving economic landscape while remaining focused on its mandate.
“When I am talking about aligning the central bank to the new economy, I am talking about the things that are taking place. For instance, the discovery of oil and gas in the ocean. That will bring significant structural change to the economy,” he said.
He said the central bank must ensure it has the capacity to respond to these developments, as well as other changes driven by digital innovation and payment system advancements.
“We need to make sure that the central bank has got capacity. We need to make sure the central bank is a knowledge-based institution. We build capacity and we align the central bank to the new economy,” Uanguta said.
Uanguta said his broader goal is to ensure the central bank becomes a modern institution capable of responding to economic changes over the long term.
“What I think ought to be done at a time like this is to make sure that the central bank in five years to come, in 10 years to come, in 20 years to come, becomes a modernised central bank that is really able to respond to the changes that are taking place in the economy,” he said.
Uanguta said the importance of embracing innovation, artificial intelligence and technology to ensure Namibia keeps pace with global developments.
“As a country, at any point in time, we need to recognise that we are living in a world that is changing quite rapidly. A world that is driven by innovation, a world that is driven by artificial intelligence,” he said.
He added “Hence, we cannot be left behind. We need to keep pace with what is happening. We need to embrace AI, we need to embrace innovation and technology, particularly in the payment system sphere.”
He said strengthening technological capability will benefit both the financial system and the wider economy.
“Once we do so, it will bring great benefit to the entire financial system and to the economy, as we know that the financial system is the lubricant or the oil to the economy,” Uanguta said.
Uanguta said innovation and staying at the forefront of technology are critical to ensuring Namibia’s financial system remains relevant as the country enters a new economic phase shaped by oil, gas and digital transformation.
Analyst Ndumba Kamwanya said not enough is being done to make sure people in Namibia will benefit from the coming oil and gas industry.
“In my view, not enough is being done to make sure Namibians will truly benefit. There is a lot of talk, but very little clear information shared with the public,” he said.
Kamwanya said communities do not know what jobs, contracts, or revenue they will actually get.
“Transparency is also weak. Without strong local content rules and public oversight, most benefits could go to foreign companies,” he said.
Kamwanya said the country still lacks strong policies to protect local empowerment.
“We do not yet have strong, clear, and enforced policies that fully protect local empowerment. Some discussions are happening, but the legal and policy framework is still missing or not detailed enough,” he said.
“If policies exist, they are not clearly communicated or accessible to the public. This creates uncertainty and risk that locals will be sidelined.”
Kamwanya warned that Namibia must learn from other oil-producing nations like Nigeria and Angola.
“…where oil wealth did not automatically lead to broad local empowerment,” he said
He added “We must put strong laws in place before production starts, ensure transparency in contracts, and create strict local content requirements. Clear policy and legal frameworks must come first, not after profits begin.”
Kamwanya said early planning and clear laws are key if Namibians are to benefit when oil production begins.
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