The president of the Chamber of Mines of Namibia George Botshiwe has cautioned that a potential increase in local ownership of up to 51% of mines operating in Namibia could have disastrous consequences for the domestic sector. 

His remarks are in response to a directive from Deputy Prime Minister and Minister of Industries, Mines and Energy Natangwe Ithete, who instructed government to consult mining industry stakeholders on a new local ownership policy in all new mining ventures. He made these remarks at the opening of the recent annual Mining Expo & Conference in Windhoek. 

“We believe that local empowerment is not only a matter of social justice, but also a cornerstone for long-term stability and sustainability in the sector,” said Ithete. He noted that Namibia’s minerals are a national asset that could be used for social progression and improved livelihood.

Ithete added that increased local ownership is part of a broader push to ensure greater local participation and economic benefit from the country’s mineral wealth.

“It is, therefore, our collective responsibility to ensure that the exploitation of these resources results in tangible benefits for all Namibians,” he said.

In response to this directive and commenting on Namibia’s improvement on the mining attractiveness index, Botshiwe stated that the chamber is deeply concerned about recent policy pronouncements, particularly the proposed 51% Namibian ownership requirement in new mining ventures. 

“Such measures risk undermining the progress made and could potentially reverse the gains in exploration investment, positioning Namibia as one of the least attractive destinations in Africa in the 2025 Fraser Survey,” he added. 

His statements are in light of the 2024 Fraser Institute Survey of Mining Companies that reported a notable improvement in Namibia’s performance on the Investment Attractiveness Index (IAI), rising by 10 points from 56 in 2023 to 66 in 2024. 

This improvement elevated Namibia’s global ranking to 35th out of 82 jurisdictions, up from 42nd out of 86 in the previous year. 

The chamber pointed out that in the African context, Namibia retained its position as the fourth most attractive mining investment destination out of 20 jurisdictions surveyed, consistent with its ranking in 2023 and marking a steady rise from 6th out of 16 jurisdictions in 2022. 

On the Policy Perception Index (PPI), Namibia ranked as the second most attractive jurisdiction in Africa, a key contributor to its overall investment appeal. 

“As a mining industry, we are proud of Namibia’s improved ranking in the global investment landscape for mining and increasing competitiveness among her African peers as a sought-after mining investment jurisdiction. This performance is reflected in the substantial increase in exploration activity, which increased by 106.3% and 7.3%, respectively, in 2024,” Botshiwe added. 

The Investment Attractiveness Index (IAI) is a composite measure combining the PPI and the Best Practices Mineral Potential Index, weighed at 40% and 60%, respectively. 

The PPI assesses the attractiveness of a country’s mining policies and regulations, while the Mineral Potential Index evaluates geological potential assuming an ideal policy environment. 

Namibia’s overall improvement was driven by a 10-point increase in both sub-indices. 

The PPI rose from 18 in 2023 to 28 in 2024, and the Best Practices Mineral Potential Index increased from 49 to 59.  

In a statement released last week, the chamber pointed out that while Namibia performed exceptionally well on its PPI score and ranking, no substantial progress was made in finalising the Draft Minerals Bill in 2024. 

“Technical discussions commenced on the previously proposed State-owned free carry. However, the recent announcement by the minister of mines and energy regarding 51% local ownership has introduced a new wave of policy uncertainty to the mining sector,” the chamber stated. 

In this regard, the chamber is actively engaging with government stakeholders, including the ministry, to advocate for a mutually beneficial policy framework that promotes local empowerment while safeguarding the competitiveness and growth of Namibia’s mining sector.  Government currently owns between 3.4% and 10% shares in numerous mining ventures, with the only 50/50 agreement between government and De Beers Group in Namdeb. 

– ebrandt@nepc.com.na