Namibia is a country blessed with abundant natural resources gold, lithium, uranium, diamonds and more. These treasures lie beneath our soil, waiting to be harnessed for the benefit of all Namibians. Yet, the question remains: Are we truly reaping the benefits of our wealth? 

Or are we allowing foreign investors and outdated policies to dictate the fate of our resources? It’s time for Namibia to reassess how it manages its mining industry and take bold steps toward decolonising it.

Constitutional mandate to empower Namibians

The foundation of this argument lies in the Constitution of the Republic of Namibia. Article 1(2) states that “all power shall vest in the people of Namibia, who shall exercise their sovereignty through the democratic institutions of the State.” Simply put, the government is an extension of the people; it exists to serve their interests. 

Furthermore, Article 100 states that Namibia’s land, water and natural resources belong to the State, unless they are lawfully owned by others. This means that these resources are not just commodities; they are assets meant to uplift and empower Namibians. So why, then, do we continue to see foreign investors extracting our minerals while Namibia struggles with unemployment, poverty and underdeveloped infrastructure? It’s time for a paradigm shift.

Value-addition: Game-changer for employment

Take lithium, for example, a mineral in high demand due to its role in producing batteries for electric vehicles. Instead of exporting raw lithium, Namibia should focus on value-addition. 

Establishing processing plants within the country will not only create jobs, but also ensure that Namibia benefits from the full economic potential of this resource. Imagine a future where Namibian-made lithium batteries power electric vehicles worldwide. 

That’s not just a dream; it’s an achievable goal if we prioritise industrialisation and skills development.

Breaking exploitation cycle 

Africa holds 30% of the world’s natural resources, yet many African nations remain impoverished. 

This paradox is rooted in exploitative practices that benefit foreign investors more than local communities. Namibia must take a firm stance, our resources belong to us, and their exploitation must directly benefit Namibians. 

Mining laws need urgent reform to ensure that contracts are negotiated in the best interest of the country, not just the investors.

Gold refinery for Namibia

Namibia’s gold industry offers another opportunity for transformation. Currently, gold is exported in its raw form, depriving us of the benefits of refining it locally. Establishing a gold refinery in Namibia would allow us to produce gold bars. These bars could then be stored in the Bank of Namibia’s reserves, thereby strengthening our financial independence. In fact, Namibia could follow the example of countries like Burkina Faso, England and Zimbabwe, which use their gold reserves to back their currencies and bolster economic stability.

The government should consider implementing a law requiring gold-mining companies to pay their mining royalties in gold rather than cash. By doing this, Namibia could ensure that the gold is refined locally, adding more value to its natural resources and proudly branding the gold bars like the Bank of England. 

These locally-refined bars could then be stored securely in the Bank of Namibia’s reserves, boosting the nation’s financial stability and highlighting its wealth of natural resources. This initiative could stimulate economic growth, generate local jobs in the refining industry and foster a sense of national pride, all while ensuring Namibia enjoys greater benefits from its precious gold reserves.

Currently, the Namibia Dollar is pegged to the South African Rand. While this arrangement has its advantages, it also ties our currency’s fate to external factors beyond our control. By backing the Namibia Dollar with gold stored in our central bank reserves, we could establish a more independent and resilient monetary system. This would not only enhance investor confidence, but also provide a solid foundation for economic growth.

Paying off national debt

Mismanagement of natural resource revenue has long been a challenge for resource-rich countries. However, if Namibia adopts a transparent and accountable system for managing its resource wealth, we could utilise these funds to pay off the national debt and invest in critical infrastructure such as schools, hospitals, roads and housing. This requires strict oversight and a commitment to ensuring that every dollar earned from mining benefits the people.

Ownership is key

One of the most significant changes Namibia must make is to increase its ownership stake in mining operations. Currently, the government often holds as little as 10%, a figure that does little to empower Namibians or generate substantial revenue. 

A 50% stake in every mine would ensure that profits are shared equitably and reinvested in national development. This isn’t an unreasonable demand; it’s a necessary step toward reclaiming control over our resources.

Learning from Norway’s success

Namibia doesn’t have to reinvent the wheel when it comes to resource management. Norway serves as an excellent example of how to utilise natural resource wealth to build a prosperous future. Through its sovereign wealth fund, Norway has saved billions of dollars derived from oil revenue, ensuring long-term financial security for its citizens. Namibia can adopt similar practices by creating a sovereign wealth fund dedicated to managing mining revenue responsibly.

Negotiating in Namibia’s best interest

It’s time for Namibian officials to adopt a “take it or leave it” approach when negotiating mining deals. Investors must understand that they are guests in our country, and they must abide by terms that prioritise Namibia’s interests. This isn’t about being hostile; it’s about being assertive and ensuring that our resources serve as a catalyst for national development rather than a source of exploitation.

Building a prosperous future

Decolonising Namibia’s mining industry is a challenging yet essential task. By reforming mining laws, increasing ownership stakes, investing in value-addition and managing resource revenue responsibly, we can transform our natural wealth into a source of prosperity for all Namibians. The time for change is now. Let us take bold steps toward reclaiming control over our resources, and building a future where every Namibian benefits from the riches beneath our soil. This is strictly business, nothing personal. It’s about ensuring that Namibia’s natural resources serve their rightful purpose uplifting our nation and empowering its people. Together, we can turn our resource wealth into a legacy of prosperity that future generations will thank us for.

*Jesaya Mukwambi is a law student at the University of Namibia.