Namibia advised to build capacity rather than protect local businesses
Namibia should use its emerging oil and gas industry to build internationally competitive local companies rather than shielding domestic businesses from competition. Speaking at the Namibia Oil and Gas Conference in Windhoek, Solewant Group chief executive Solomon Ewanehi says local content policies would have limited value if they did not translate into sustainable technical and […] The post Namibia advised to build capacity rather than protect local businesses appeared first on The Namibian .
Namibia should use its emerging oil and gas industry to build internationally competitive local companies rather than shielding domestic businesses from competition.
Speaking at the Namibia Oil and Gas Conference in Windhoek, Solewant Group chief executive Solomon Ewanehi says local content policies would have limited value if they did not translate into sustainable technical and industrial capabilities that could eventually compete beyond Namibia.
He says the ultimate objective should be for Namibian companies to move from participating in local projects to competing for work across Africa.
“The objective is not to protect Namibian companies forever from international competition. The objective is to prepare Namibian companies to win international competition,” he says.
Ewanehi says Namibian companies should compete where they already have the capacity, partner where capabilities need to be strengthened, transfer technology where knowledge is lacking and localise activities where sustainable scale can be achieved.
“Capability has to be built,” Ewanehi says, drawing on Solewant’s 26-year experience in Nigeria.
The comments come as Namibia prepares for potential oil production following major discoveries in the Orange Basin, with the government seeking to increase local participation in the sector.
Ewanehi warns against measuring local content simply by the percentage of contracts awarded to Namibian companies. “Local content and local capability are not necessarily the same thing,” he says.
According to Ewanehi, genuine local capability means businesses that can meet international standards for quality, safety, delivery, cost and technical performance, while producing engineers and technicians capable of working beyond Namibia.
From Pitching to Policy
The call for action coincides with the Cabinet’s recent approval in principle of the Upstream Petroleum Local Content Policy, which aims to ensure meaningful participation through skills development and enterprise growth.
As a practical step, the Namibia Investment Promotion and Development Board (NIPDB) hosted a pitching session for 14 selected Namibian suppliers.
These businesses, ranging from engineering to health and safety, are presenting their value propositions directly to global oil majors and financiers to bridge the gap between local capacity and industry demand.
Cons Karamata, chief executive of the Economic Association of Namibia, says that the sector’s success will ultimately be measured by its impact on people’s lives.
“It will be measured by the opportunities created for young Namibians entering the workforce, the growth of local businesses… and stronger institutions,” Karamata says.
