Green energy, petroleum both power the future

Minister of industries, mines and energy Modestus Amutse says the tension between Namibia’s transition to green energy and its emerging petroleum development should not be seen as opposites.

He was speaking at the official opening of a two-day Second International Conference on Finance and Sustainable Business under the theme ‘Rethinking Green Finance Innovations for Sustainable Business Models’ at the Namibia University of Science and Technology (Nust) on Wednesday.

“The energy transition cannot become a choice between development and decarbonisation. It must be designed so that Namibia can achieve both.

“If petroleum production becomes commercially viable, a finite resource must be converted into lasting assets – skills, institutions, infrastructure, reliable electricity, water security, renewable energy and a diversified economy,” he said.

The minister said the sixth National Development Plan (NDP6) is Namibia’s final five-year delivery plan on the road to Vision 2030, and it places measurable obligations before government, business, finance and academia.

“By 2030, NDP6 seeks economic growth of at least 7% and an employment rate of 75%. It aims to raise manufacturing from 10.6% to 18% of gross domestic product, increase processed mineral exports from 46.6% to 57%, expand installed electric capacity from 734MW to 1 153MW, and raise electricity access from about 59% to 70%,” he said.

Amuste highlighted that with only 59.5% of households having access to electricity in the 2023 census, the solar revolving fund under his ministry provides subsidised loans for solar technologies to enhance connectivity, with repayments financing the next beneficiary.

“That model works best for people with a regular income, a bank account and a credit record.

“What of the rural household without formal income, the unemployed young person, or the informal enterprise that cannot satisfy conventional credit tests?”

The minister said the fund was not a failure; but the financing architecture is incomplete.

Cleaner energy must also mean fairer access.

Namibia’s critical minerals present a similar challenge, Amutse said.

“Our central question is not only what minerals lie beneath our soil, but also how those minerals create greater value above the ground – in Namibian factories, skills, infrastructure, businesses and households,” he said, highlighting practical lessons from lithium beneficiation.

“It requires electricity, water, process heat, laboratories, logistics and specialised skills. Mining, energy, water, industrial policy and finance must meet before the investment decision – not after a plant asks for a connection the system was never prepared to supply,” he said.

Not every mineral can or should be processed to its final form in Namibia, he said.

The minister challenged Nust and the conference to come up with ideas to lower the cost of capital and allocate early-stage risk in a small market.

Speaking at the same event, United Nations resident coordinator Hopolang Phororo said countries across the world are encountering challenges that are reshaping economies and societies.

“We must remember that the success of Namibia’s transformation will ultimately depend on people,” she said.

Phororo said infrastructure can be built in a few years, but developing the engineers, technicians, entrepreneurs, researchers, and innovators required to sustain a competitive and inclusive economy takes decades.

Gondwana Collection managing director Gys Joubert said local Namibians constitute about 15% of Gondwana’s clients, with 85% of tourists coming from abroad.

He said the future lies in the younger generation seeing tourism as opportunity, ownership, livelihood, identity and responsibility.

“We can build solar plants, recycle water, restore wildlife and protect the land, but none of this lasts if the next generation does not understand why it matters,” he said.

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