Namibia's President Netumbo Nandi-Ndaitwah has initiated a controversial effort to assume direct control of the country's key oil and gas portfolio, a move that has created significant political and legislative instability and drawn widespread criticism for undermining governance structures and unsettling international investors.

Presidential Rationale and Initial Actions

Upon entering office in March, President Nandi-Ndaitwah immediately moved to take direct control of the oil and gas sector, justifying this by stating that "such a strategic sector needs proper monitoring, effective governance and careful stewardship" to ensure national benefits. Her comments were widely interpreted as a warning against corruption, particularly following allegations at state oil company Namcor. This interpretation was reinforced by her husband's April comments suggesting some individuals wanted the portfolio assigned to specific ministries for corrupt purposes. Her initial administrative actions included appointing Natangwe Ithete as Minister of Industries, Mines & Energy and Deputy Prime Minister, and subsequently creating an Upstream Petroleum Unit (UPU) in May with two top advisors reporting directly to her from within the president's office.

Political and Legislative Challenges

The government's strategy encountered serious legal and political obstacles. It became apparent by mid-2025 that the UPU lacked legal standing because its formation required parliamentary approval. In a surprising move, President Nandi-Ndaitwah sacked her own appointee, Minister Ithete, in October without providing an official explanation. His interim replacement, Defence Minister Frans Kapofi, then tabled an 'urgent' motion to amend the Petroleum Exploration & Production Act of 1991 to give the UPU legislative footing. However, this faced a fractious response in the National Assembly, particularly from opposition members, leading the speaker to defer consideration of the legislation until the following year.

Criticism and Broader Implications

The president's consolidation of power has drawn substantial criticism from multiple quarters. A source with inside knowledge of Namibian politics argued that "the oil and gas sector is too complex for politics or micromanagement," emphasizing that effective governance requires appointing qualified experts rather than direct control. Another investor agreed there were better ways to ensure accountability and transparency. Former prime minister Nahas Angula urged reversing the move, warning that concentrating decision-making power collapses accountability structures. Political analyst Ndumba Kamwanyah noted that shifting control to the presidency "undermines checks and balances that are vital in a democracy."

Impact on Investment and Future Prospects

This political instability comes at a critical time when major companies including TotalEnergies, Rhino Resources, and Galp Energia are potentially set to take final investment decisions on three large projects within two years. Investors require political, legislative, and fiscal certainty when committing billions to challenging offshore projects, which Namibia is currently failing to provide. With the country targeting first oil from major offshore projects by 2029 or 2030, repeated political blunders could jeopardize these timelines and the substantial economic transformation the sector promises.