Namibia proposes energy dividends for citizens

NAMIBIA has proposed a direct redistribution of natural resource wealth to its citizens in the form of cash dividends from energy revenues.

The announcement came at the opening of the 58th Executive Committee Meeting of the Southern African Power Pool (SAPP) at Swakopmund on 10 April, where energy ministers and utility leaders gathered to address the future of electricity development across the SADC bloc.

“The outcomes of energy development must benefit all Namibians on a socioeconomic level,” deputy energy minister Gaudentia Kröhne stated on behalf of Minister of Industrialisation and Energy Natangwe Ithete. “We must consider the implementation of a cash transfer mechanism, so that a portion of resource revenues can go directly to citizens.”

The proposed policy, inspired by Alaska’s Permanent Fund Dividend, is part of a broader push by Namibia to ensure its growing energy sector—driven by solar, wind, oil, gas, and emerging hydrogen production—translates into inclusive, generational wealth.

Kröhne detailed plans for the Namibia Future Generations Fund, modelled on the Norwegian sovereign wealth framework, which will invest energy revenues in public infrastructure, education, healthcare, water, and electrification, with strict transparency and capped withdrawals.

“No Namibian in any part of the country should lack electricity while foreign corporations reap huge profits,” she said. “No families or communities should be displaced without just compensation.”

The meeting brings together 12 SADC member states under the SAPP banner. While cross-border electricity trading and infrastructure development are core to the meeting’s agenda, Namibia’s stance has pushed socioeconomic equity and energy justice to the front.

At the same time, Namibia outlined its ambitions to become both energy self-sufficient and a net regional exporter by increasing domestic energy capacity from current levels to 900 megawatts (MW) by the 2027/28 fiscal year.

“Our ambition is not limited to domestic energy security,” Kröhne told delegates. “We aim to become a major energy exporter.”

Currently, Namibia imports more than 60 percent of its electricity. The government’s strategy includes major renewable and gas infrastructure projects such as the Rosh Pinah Solar PV Plant (100MW), the Omburu Solar PV Project (80MW), Otjikoto Biomass (40MW), and a series of distributed IPP projects totalling 120MW. These are to be supported by battery energy storage and partnerships with international financial institutions, including the World Bank.

Also highlighted were the Baynes Hydro Project (300MW), the Kudu Gas-to-Power Project (400MW), and Namibia’s role in cross-border interconnection through the Southern African Power Pool.

Beyond infrastructure, Kröhne called for the full mobilisation of Namibia’s innovation capacity, including partnerships to deploy artificial intelligence for demand forecasting, mini-grid technology for rural electrification, and local manufacturing for solar panels and electrolysers.

Namibia’s energy vision is also tightly linked to the Hyphen Green Hydrogen initiative, which aims to produce 300 000 tonnes of green hydrogen annually. According to her, combined with abundant solar and wind resources, it could transform Namibia into a key exporter of clean energy in the coming decades.

“Our only real choice is whether we become spectators in the global energy transition—or take the lead in this transformation,” Kröhne said. “Let us use the revenues from our fossil fuels to lay a solid foundation, while we harness our nuclear and renewable energy sources to secure our legacy.”