Namibia must act now to ensure its financial sector is ready to support the country’s emerging oil and gas industry, former Minister of Mines and Energy and former Governor of the Bank of Namibia, Hon. Tom Alweendo, has urged.

Delivering the keynote address at a Bank of Namibia seminar titled From Discovery to Development: Preparing Namibia’s Financial Sector for a Sustainable Oil and Gas Economy, Alweendo said the country’s recent offshore discoveries have created unprecedented opportunities, but warned that natural resources alone will not guarantee lasting prosperity.

“The oil discoveries have changed the national conversation,” he said. “But hope, by itself, does not build an economy. A discovery is not yet development. A resource is not yet prosperity. A licence is not yet a livelihood.”

He stressed that Namibia’s success will depend on building strong institutions, attracting investment, developing skills and creating a financial system capable of supporting sustainable growth.

Although the country’s oil and gas sector is currently financed largely by international capital, Alweendo said local financial institutions cannot afford to remain spectators. Failure to participate, he warned, would see much of the sector’s financial value—including advisory services, project financing and business opportunities—captured outside Namibia. “We must not allow Namibia to have oil activity, but limited Namibian financial participation,” he said.

To increase local participation, Alweendo proposed a three-tiered approach for Namibian banks. The first involves financing local suppliers and contractors through contract-backed lending and working capital facilities.

The second focuses on supporting industry-related infrastructure such as logistics hubs, housing, training centres and shore bases. The final stage encourages local banks to participate alongside international lenders in syndicated financing arrangements to build expertise and confidence in the sector.

He also called for deliberate efforts to ensure historically disadvantaged Namibians benefit from the industry’s growth through structured and responsible financial inclusion. Rather than lowering lending standards, he said banks should support credible local businesses with sound governance, capable management and viable contracts.

By Rudi Bowe