Namibia is strengthening its position as one of Africa’s emerging energy destinations as fresh exploration commitments signal continued international interest in the country’s resource potential. The latest development adds momentum to an energy story that is increasingly extending beyond traditional oil and gas exploration to include renewable energy and green hydrogen.
Australian energy company 88 Energy and its joint-venture partners have committed a minimum of $10 million in gross exploration expenditure over the next two years on Petroleum Exploration Licence 93, known as PEL 93, in Namibia’s Owambo Basin, subject to regulatory approval for the licence’s renewal.
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The programme includes the preparation for and drilling of at least one exploration well, creating the potential for further geological information and, depending on the results, future development opportunities.
Although the commitment is relatively modest compared with the scale of major international energy projects, its significance lies in what it represents: continued investor confidence in Namibia’s exploration potential.
The country has attracted growing attention from international energy companies in recent years following major discoveries and increased exploration activity. This has placed Namibia on the radar of investors looking for new sources of energy resources while also creating an opportunity for the country to redefine its position within Africa’s energy landscape.
PEL 93 is located in the Owambo Basin, an area that has attracted exploration interest because of its geological potential. The existing exploration period is due to expire in October 2026, while the joint venture has applied for a further two-year renewal.
If the renewal is approved, the planned exploration programme will move forward, providing additional information about the basin’s potential.
For Namibia, continued exploration is important even though exploration itself does not guarantee commercial discoveries. The process involves significant financial risk, with companies investing heavily in geological studies and drilling without certainty that commercially viable resources will be found.
However, successful exploration can generate significant economic benefits.
Discoveries can attract additional investment, create employment and stimulate demand for supporting services ranging from engineering and logistics to construction and professional services.
Namibia’s opportunity is particularly interesting because the country is not relying solely on hydrocarbons to shape its energy future.
It possesses some of Africa’s strongest renewable-energy resources, particularly in solar and wind. Its vast land area, high levels of solar irradiation and favourable wind conditions have made it an attractive destination for large-scale renewable-energy developments.
Green hydrogen is emerging as another important part of the country’s economic strategy.
By using renewable electricity to produce hydrogen, Namibia aims to position itself within an emerging global market for low-carbon fuels and industrial products. The country has already attracted international attention to its green hydrogen ambitions, with projects being developed around the potential export of hydrogen and hydrogen-derived products.
This combination of conventional and renewable energy creates an unusual strategic opportunity.
Oil and gas could provide near- and medium-term investment and government revenues, while renewable energy and green hydrogen could support a longer-term transition towards a lower-carbon economy.
Rather than treating the two sectors as competing alternatives, Namibia could use them as complementary components of a broader development strategy.
The critical issue will be how much value the country retains from its resources.
Africa has a long history of exporting raw commodities while importing higher-value finished products. Namibia has an opportunity to avoid repeating that pattern by developing local industries and skills around its emerging energy sector.
Local content will therefore be essential.
Energy projects can create opportunities for Namibian businesses in areas such as transport, engineering, construction, maintenance, catering, environmental services and professional consulting. Developing these industries can ensure that investment generates economic activity beyond the initial project itself.
Skills development will be equally important.
Large energy projects require engineers, technicians, geologists, environmental specialists, project managers and other highly skilled professionals. Namibia will need to invest in education and vocational training if its citizens are to occupy a significant share of the jobs created by the sector.
Infrastructure is another major consideration.
Large-scale energy development requires roads, ports, electricity networks, water systems and telecommunications. If these systems are inadequate, even commercially attractive projects can face delays and higher costs.
Namibia’s geographic position provides some advantages, particularly through its Atlantic coastline and access to international shipping routes. But turning that geographic advantage into an economic one will require continued infrastructure investment.
The country’s regulatory environment will also influence investor confidence.
International companies need predictable licensing systems, transparent taxation arrangements and clear environmental requirements. At the same time, the government must ensure that communities benefit from resource development and that environmental concerns are properly addressed.
This balance will become increasingly important as Namibia expands both hydrocarbon exploration and renewable-energy projects.
The country’s emerging energy economy could also support industrialisation.
Reliable and competitively priced electricity is essential for manufacturing and mineral processing. Namibia possesses mineral resources that could potentially support greater domestic value addition, but processing those resources requires energy. Renewable energy could therefore contribute not only to exports but also to domestic industrial development.
Green hydrogen could eventually support industries producing fertilisers, chemicals and other energy-intensive products. This could allow Namibia to participate in higher-value global supply chains rather than remaining primarily an exporter of raw resources.
The international energy landscape creates additional opportunities.
Countries around the world are seeking to diversify energy supplies and secure access to resources. At the same time, governments and companies are looking for new locations for renewable-energy production and green fuels.
Namibia’s combination of resource potential, renewable-energy capacity and relatively low population density allows it to attract investment across several parts of the energy value chain.
But the country must manage expectations.
Exploration results are uncertain, and not every prospect will become a commercial project. Green hydrogen also remains an emerging industry whose economics will depend on technology, infrastructure, international demand and access to finance.
The key is therefore to build a diversified economic strategy rather than rely on any single resource.
Namibia’s emerging energy sector provides an opportunity to do exactly that.
The latest exploration commitment demonstrates that international companies remain willing to invest in understanding the country’s resource potential. The next step is to ensure that such investment contributes to broader national development.
If exploration produces commercially viable resources, Namibia could gain new revenues and investment. If renewable-energy and green-hydrogen projects continue to advance, the country could establish new export industries capable of supporting long-term economic growth.
The real opportunity lies in combining these developments with local value addition, skills development, infrastructure investment and strong governance.
Namibia’s energy future could therefore become a model for how an African resource-rich country manages the transition between conventional and emerging energy industries.
Rather than choosing between hydrocarbons and renewables, Namibia can pursue a more pragmatic approach that uses today’s opportunities to build the foundations for tomorrow’s economy.
The $10 million exploration commitment is one more indication that international investors see potential in that future.
Whether Namibia ultimately becomes a major oil producer, a green hydrogen exporter, or both, its greatest opportunity will be to ensure that its natural resources generate lasting economic value for its people.
With the right policies and investment, Namibia could transform its growing energy profile into a platform for industrialisation, job creation and a more diversified economy.
