Staff Writer
The government plans to review contracts of up to N$4.5 million (US$250 000) entered between international oil companies operating in Namibia and their contractors to make sure they satisfy aspects of the country’s Local Content Policy.
The latest final draft of the Local Content Policy says the government will, if deemed necessary, review such contracts on a quarterly basis to make sure that they satisfy the country’s Local Content policy.
According to the final draft Local Content Policy dated March 2025 from the Ministry of Industries, Energy and Mines, the government shall, where it considers necessary, review some contracts entered by contractors or its sub-contractors or any other related entity to ensure compliance with Namibian local content reporting requirements.
The Local Content Policy which was drafted under former Minister Tom Alweedo said it aims to outline the government ’s commitment to enforcing value addition and local economic development by promoting Namibian participation across the petroleum sector.
“A contractor shall submit to the Ministry within 30 days at the end of each Namibian financial quarter, a listing of all contracts, sub-contracts and purchase orders exceeding two hundred and fifty thousand United States Dollars (US$250,000.00) or the equivalent in Namibian Dollars (N$) or such other limit as the Ministry may determine, awarded in the previous quarter,” part of the policy reads.
This Local Content Policy primarily applies to the upstream, midstream segments of the petroleum sector.
It also covers part of the downstream activities directly related to Namibian oil and gas production.
“The Minister may expand its scope to include other segments of the petroleum value chain and the broader energy sector, enhancing demand for local goods and services and supporting local capacity- building investments,” the policy said.
According to the draft the Local Content Policy is a key tool for promoting economic sovereignty and reducing dependency on foreign expertise by building local capacity.
The draft policy also says the listing of all contracts, sub-contracts and purchase orders that the government will review should at the minimum include a list of all items and services procured, value of contract or purchase order, name of the successful contractor or vendor and a primary location of work.
It will also cover estimates of Namibian content, commencement and completion dates and any other information required by the Ministry of Finance for the purposes of implementing the provisions of this policy.
“The government shall mandate the localisation of procurement processes
in the petroleum upstream and midstream sector to ensure that Namibian
businesses and professionals play a central role in supplying good and
services for Namibian projects under the regulation and authorisation of the Regulator,” the final draft policy says in part.
It also added that, “ This policy shall ensure that the procurement of goods and services contributes directly to national economic development, creating opportunities for Namibian companies and ensuring that Namibia benefits from its natural resources beyond revenue generations.”
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