Introduction
On Tuesday, October 29, 2024, I had the pleasure of attending an enlightening webinar hosted by the Southern African-German Chamber of Commerce and Industry (in conjunction with other Chambers of Commerce), titled “Exploring Southern Africa: Doing Business in Namibia’s Energy and Hydrogen Market.”
Namibia Standing Out
The Namibia Investment Promotion and Development Board (NIPDB), represented by Hafeni Motsi, shared compelling insights and statistics that revealed the tremendous opportunity Namibia holds in the energy sector. It’s truly rare to see such an exhilarating moment in time where the scope for expansion is so vast, making this a unique opportunity for both local and international investors.
Amongst those statistics were also, Motsi also drew light to some achievements that rank Namibia as a country that serves her people and foreigners with pride and decorum.
- Consistently in the Top 10 safest destinations in Africa.
- Ranked 1st in Africa for Press Freedom and 22nd in the world.
- Ranked 1st in Africa for closing the gender gap and 8th in the world.
- Ranked 6th highest in Africa on the Corruption Perception Index.
- Ranked 7th as the most peaceful country in Africa.
- Ranked 8th in Africa for Governance.
- Literacy rate is at 92%.
- Ranked 9th in Africa for the startup ecosystem, and 88th in the world, with an improvement of 3 positions from the prior year.
Renewable Energy Opportunities
With more than 125 attendees from across the world (primarily Germany, Austria, the USA & South Africa), we dove into the exciting prospects in Namibia’s Renewable and Green Hydrogen Energy sector and explored what the future holds for investors and Namibia.
Namibia’s commitment to renewable energy was strongly emphasised, with a clear message: this sector is a national priority. The NIPDB demonstrated their proactive stance on supporting investments, especially within renewable and green hydrogen, and their encouragement toward business partnerships in these high-potential areas was evident.
Key topics included Namibia’s extensive energy potential—spanning oil, gas, green hydrogen, uranium, and biomass.
Oil and Gas
Located in the Orange Basin:
- Total and Shell discoveries are estimated at ~11 billion barrels.
- Galp recently announced a 10 billion barrels discovery.
- At least 9 more exploration wells are planned for 2024/25.
Namibia is in the Top 20 globally and ranks 3rd in Africa in oil reserves, behind Libya and Nigeria.
Green Hydrogen
Namibia is among the top 5 countries that can produce clean hydrogen at competitive prices (~USD 1.5/kg).
The Hyphen Project is set to inject over USD 10 billion in Foreign Direct Investment (FDI) into Namibia’s economy.
Four smaller pilot projects have attracted an additional EUR 30 million in FDI grant funding.
The SDG Namibia One Fund is a blended financing platform aiming to attract EUR 1 billion in FDI for green hydrogen projects.
Renewable Energy
The World Bank ranks Namibia #1 globally for the highest average practical PV power potential per installed capacity (kWh/kWp).
Average output ranges from 2,200 to 3,000 kWh/m²/a with minimal cloud cover.
Wind potential exceeds 100 GW, with 2,800 MWh/MW at a capacity factor of around 50%.
Uranium
Namibia is the 3rd largest producer of uranium globally.
Namibian mines can supply 10% of the world’s uranium demand.
The government strongly supports expanding uranium mining and involving the private sector in nuclear power, though nuclear power is not currently part of Namibia’s energy mix.
Developments and Upcoming Visions
The discussions also covered promising developments in the wind and solar sectors, which offer viable renewable solutions given Namibia’s geographical advantages.
Most notably, the presentation laid out an ambitious 30-year vision for Namibia’s green hydrogen sector. This long-term strategy highlights the country’s goal to become a global leader in renewable energy, a mission that’s ambitious but, as Motsi emphasised, absolutely within reach with collaborative investment and support.
Conclusion
The webinar left me with a renewed perspective on the growth of the energy sector in Namibia and a sense of enthusiasm about the path ahead. The future is indeed bright for investors ready to be part of this transformational era in Namibia’s energy landscape.
IBN Immigration Solutions remains equipped and ready to serve all those who wish to make Namibia their dream destination, be them private clients or large corporations alike!
Written by Ian Coffee, Branch Manager, IBN Immigration Solutions Namibia
