From Fishrot to Oilrot

The Office of the President is conducting a nationwide consultation on the proposed National Upstream Petroleum Local Content Policy, which is ostensibly aimed at boosting the procurement of local goods and services in the oil and gas sector. But according to the Economic Policy Research Association (EPRA), the draft policy risks becoming yet another conduit for the enrichment of politically connected elites.



EPRA argues that, while the policy is framed as a tool to empower Namibians, its wording mirrors past legislation that disproportionately benefitted a small circle of “previously disadvantaged Namibians” - many of whom, the association claims, are no longer disadvantaged at all.



“The distinction is clear,” an EPRA spokesperson said. “Previously disadvantaged refers to those who used to be poor but are now wealthy and politically connected. The currently disadvantaged are the 55% of Namibians who remain unemployed, the youth without jobs, subsistence farmers and the rural poor. Yet once again, policy is written to favour the former, not the latter.”



The organisation likened the current approach to previous controversial initiatives, such as the National Equitable Economic Empowerment Framework (NEEEF) and the Investment Promotion and Facilitation Bill, where the government repeatedly refused to replace “previously disadvantaged” with “currently disadvantaged”.



EPRA says this loophole allows the same small group, already enriched through fishing quotas, mining stakes, GIPF mandates, land allocations, government tenders and Agribank and DBN loans, to benefit again, while ordinary Namibians remain excluded.



Enriching politically



connected



“This is the same inner circle that stood to benefit from NEEEF,” the statement read. “The proposed policy will not broaden opportunity; it will simply extend the enrichment of a small, politically connected elite.”



The watchdog further warned that the policy, as drafted, risks repeating the country’s painful “fishrot” scandal, this time in the oil and gas sector.



“A handful of elites with little or no sector expertise intend to hijack local content for their benefit,” EPRA said. “They will not provide genuine goods or services. Instead, they will act as middlemen for foreign companies, adding a ‘PDN face’ for a hefty fee. This rent-seeking harms the economy and stifles real job creation. Namibians should reject this scam outright, before ‘fishrot’ becomes ‘oilrot’.”



Misplaced



According to EPRA, the policy’s emphasis is misplaced. Instead of ring-fencing benefits for the politically connected, the focus should be on ensuring that oil and gas companies procure directly from Namibian firms that produce goods and services locally. This would allow Namibians to participate as owners, employees and beneficiaries, maximising national value and strengthening long-term development.



“The real goal should be to embed local production and employment in the oil and gas value chain,” EPRA stressed. “But the current draft is not designed for that. It is designed to create another free ride for those already enriched.”



EPRA called on the public to be vigilant and challenge the policy during the consultation process, warning that failure to act could open the door to another high-level corruption scandal.



“Namibians should be forewarned,” the association concluded. “The proposed Local Content Policy is not about empowerment. It is about enrichment for the few at the expense of the many. We must not be caught in the same scam again.”