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August 12.2025
2 Minutes Read

Rethinking Local Ownership in Namibia's Mining Sector: Breaking the Cycle of BEE

Bright abstract logo design, symbolizing cooperation, related to Black Economic Empowerment Namibia.

Reassessing BEE Policies: Genuine Empowerment or Recycled Rhetoric?

Namibian Minister of Industries, Mines, and Energy, Natangue Ithete, stirred significant discourse at the recent Mining Expo and Conference by reiterating the government's stance on local ownership—the mandate that "locals" must maintain at least 51% ownership in mining activities. This assertion, embedded in the current strategic priorities, aims to foster value addition, skills transfer, and economic empowerment. However, the reality remains stark—out of the 21,000 jobs the mining sector currently offers, the promise of significant job creation appears more like an echo of past disappointments than a path forward for the over 320,000 unemployed Namibians.

Lessons from the Past: The Fallacy of Local Empowerment

Many speculate that the insistence on local ownership akin to Black Economic Empowerment (BEE) policies, which have primarily benefitted a small elite, suggests a troubling trend of political populism rather than genuine economic reform. The Fishrot scandal serves as a cautionary reminder that prioritizing local claims over effective governance has not historically resulted in meaningful wealth distribution. Economists argue that by focusing on creating a wealthy few through ownership policies, the government largely ignores more viable strategies that stimulate broader economic growth.

Economic Strategies That Work: A Shift in Perspective

Pioneering initiatives such as treasure quotas in the fishing industry demonstrate how effective policy can yield substantial state revenues—approximately N$1 billion without intrusive ownership mandates. Re-evaluating and learning from these successes could steer future policies towards sustainable economic growth, rather than repeating long-failed experiments in empowerment.

Beyond Political Rhetoric: A Call for Pragmatic Solutions

The emphasis on maintaining local empowerment through ownership must transition towards enhancing the contribution local entities can provide to the overall economy without conditional restrictions. By reinforcing existing revenue collection mechanisms from businesses directly, the state could significantly increase its finances whilst fostering a competitive landscape.

The Future of Mining in Namibia: Opportunities for Genuine Growth

For Namibia to truly thrive, government policies must pivot from merely addressing statistical ownership numbers to fostering a climate where industries can flourish and citizens can benefit meaningfully. As the nation faces ongoing socioeconomic challenges, leaders should focus on implementing evidence-based strategies that empower the populace without the pitfalls of historical failures.

Ultimately, voters must adopt a discerning view of the promises presented during election cycles. Holding leaders accountable for past policies that failed will ensure that they aren’t fooled again by the empty assurances of prosperity projected through political trickery. Namibia deserves not only to dream of ideas but also to witness their actualization in real economic benefits.

Frontline Voices (Opinion & Analysis)

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Ethiopia's Ambitious $8 Billion Airport Project Set to Transform African Connectivity

Update A New Era for Aviation in AfricaThe ceremonial signing held on August 11, 2025, marks a pivotal moment for Ethiopia as it appoints the African Development Bank (AfDB) as the mandated lead arranger for financing Bishoftu International Airport. This ambitious project, poised to be Africa's largest airport, comes with a hefty price tag of $10 billion, with the AfDB spearheading efforts to mobilize up to $8 billion in debt financing.Strategic Importance of Bishoftu International AirportBishoftu International Airport, strategically located 40 kilometers south of Addis Ababa, is envisioned to serve as Ethiopian Airlines' new global hub, ultimately accommodating 110 million passengers annually. This initiative not only supports Ethiopian Airlines' Vision 2040 growth strategy but also aligns with broader continental goals articulated in the African Union's Agenda 2063, emphasizing regional integration and connectivity.Enhanced Connectivity and Economic GrowthThe importance of this airport extends beyond mere infrastructure; it symbolizes a crucial leap for Africa's economic ambitions. Implementation of the project is set to commence in late 2025, effectively relieving congestion at the existing Bole International Airport, which will transition to focus on domestic flights. This transformation positions the airport as a vital component of Africa’s air transport landscape, expected to significantly contribute to the regional economy and facilitate global trade.Financing and Future ProspectsThe AfDB's decision to earmark $500 million—pending Board approval—as part of this financing project showcases its commitment to fostering infrastructural support across the continent. This type of investment not only primes Ethiopia for economic acceleration but also promotes a trend where the country can emerge as a key player in the global aviation industry.Conclusion: A Call to Action for StakeholdersAs this monumental project unfolds, stakeholders in the African economy, from business leaders to policymakers, should monitor developments closely. The Bishoftu International Airport project encapsulates the transformative potential of infrastructure development in driving economic growth, and those involved in this sector should prepare for the opportunity to influence and participate in this regional integration effort.

Reforming Namibia's Procurement Systems: Bridging Gaps for Global Competitiveness

Update Understanding the Procurement Crisis in Namibia The recent release of the Procurement Tracker Namibia report by the Institute for Public Policy Research (IPPR) unearths alarming deficiencies in Namibia's procurement system. With a focus on the 2025 Methodology for Assessing Procurement Systems (Maps), the report highlights systemic flaws across four primary pillars: the legal, regulatory, and policy framework; institutional framework and management capacity; procurement operations and market practices; and accountability, integrity, and transparency. Legal Framework: Gaps and Challenges IPPR's research associate, Frederico Links, emphasizes that while the legal framework ostensibly allows for competitive procurement, the absence of safeguards results in potential misuse. Vague provisions about ministerial exemptions and underdefined responsibilities exacerbate inefficiencies within the procurement cycle. The unclear participatory rules for foreign bidders further stifle competition, complicating Namibia's position in the global marketplace. Resource Constraints Limiting Oversight Another core issue is the underfunded procurement policy unit (PPU), which is staffed with part-time officials, drastically undermining effectiveness and professionalism. With just 14 individuals managing procurement oversight—with significant vacancies noted—there's a pressing need for resource elevation along with an urgent push for establishing proper data collection systems. The E-Procurement Challenge The e-procurement system currently in place is rudimentary, contributing to inadequate transparency and accountability. The lack of a comprehensive national monitoring and evaluation framework means critical procurement data is neither systematically collected nor effectively analyzed. This lack of reliable data complicates monitoring compliance and exposes gaps that could lead to corruption. Future Directions: Recommendations for Reform To address these systemic issues, IPPR’s Maps assessment recommends the establishment of robust standards for non-competitive procurement and the need for reinforced contract management methodologies. A fully-resourced PPU, equipped to manage and oversee procurement processes, could radically transform the sector's landscape. Implementing a strong monitoring and evaluation framework for procurement will ensure data is readily available, fostering transparency, informed decision-making, and empowering public oversight in Namibia’s procurement framework. The Broader Impact on Africa’s Global Positioning These procurement challenges in Namibia reflect broader trends in Africa's governance landscape, affecting not only local stakeholders but also international investors and geopolitical alliances. Addressing these issues is crucial for enhancing Africa's role in global trade, particularly within initiatives such as BRICS and its relations with key partners like China and the EU. Reforming procurement systems will not only improve domestic governance but will also enhance Namibia’s attractiveness in the global marketplace.

Understanding Africa’s Mineral Wealth: Are Countries Making the Right Moves?

Update The Overlooked Mineral Wealth of Africa For many African nations, the untapped mineral wealth beneath their soils represents an underutilized asset that has the potential to propel economic growth and enhance political stability. However, a lack of understanding—akin to running a business without knowing its inventory—continues to plague governments across the continent. Recent evaluations focusing on Ghana and Rwanda reveal stark contrasts in how nations engage with their mineral wealth, reflecting a broader question: Are African countries truly aware of their own resources? Ghana vs. Rwanda: A Tale of Two Strategies Historically, Ghana has been celebrated as Africa's largest gold producer, generating $11 billion in mineral revenue in 2024 alone. Yet, Ghana's political dynamics hinder long-term strategic investments in geological mapping. The oscillating party politics induce a focus on short-term gains, leaving critical geological investigations sidelined. In stark contrast, Rwanda's government has prioritized geological surveys, advancing its understanding of resources like tin and tantalum—critical for modern industries. The Colonial Legacy: A Knowledge Gap The roots of this knowledge deficit extend deeply into Africa’s colonial past. European powers meticulously mapped the continent’s mineral resources, yet these records have remained out of reach for African governments, largely housed in archives in Europe. This translates into a heavy reliance on foreign entities for geological knowledge and research—a situation that compromises national interests. Investment Trends: Leading the Charge in Policy Countries such as Uganda, Morocco, and Botswana have begun committing resources towards expansive geological mapping, recognizing its vital role in harnessing their mineral wealth. For example, Uganda's commitment to doubling its geological mapping coverage underscores a hopeful trend among African governments seeking to reverse years of neglect. A New Dawn? Understanding AfCFTA With the African Continental Free Trade Area (AfCFTA) now in effect, efficient data sharing and collaborative strategies become pivotal for leveraging mineral wealth through trade. As nations engage in a unified trade framework, understanding and optimizing mineral resources will be crucial not just for national prosperity but for regional stability and solidarity. What This Means for Business Leaders and Policymakers The implications of these developing dynamics are vast for business leaders and policymakers alike. Awareness of mineral wealth is more than just an economic issue; it has ramifications for global diplomacy and geopolitical alliances in an era where resources like lithium are increasingly vital for the energy transition. Effective engagement through informed policy can lead to strategic partnerships that bolster countries’ positions on the world stage. As Africa's potential comes under the spotlight, it is imperative for leaders and investors to acknowledge the significance of geological knowledge and to take decisive action that benefits the continent and its people.

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