Windhoek: High Economic Intelligence Managing Director, Salomo Hei, has highlighted the link between the absence of a final investment decision from major oil companies and the prevailing policy uncertainty concerning local content and ownership structures for Namibian citizens.

According to Namibia Press Agency, these observations come as the national budget is set to be presented on Thursday by Minister of Finance Ericah Shafudah. Hei noted in an interview with Nampa that while the 2026/27 national budget aims to prepare national infrastructure for the anticipated first oil timeline, international investors remain cautious in the absence of a finalized legal framework.

Hei stressed that the delay in reaching a final investment decision by global energy giants such as Shell and TotalEnergies mirrors the uncertain policy environment. He stated, "I think one of the reasons why decisions are pending on final investment decision is really around the policy certainty, around the investment promotion and facilitation to understand what the local content is."

The economist further explained that investors are reluctant to commit the substantial funds required for full-scale production without a clear understanding of the oil industry's ownership structure. He added that to ensure inclusive growth across all 14 regions, the government must convert the country's abundant natural resource potential into tangible benefits for every citizen.

Hei also warned that industrialization is unattainable without reliable power supply, regardless of the oil sector's capital intensity. He pointed out the need for significant upgrades at the Port of Lderitz and Port of Walvis Bay to accommodate the anticipated heavy equipment and logistics.

"You cannot industrialize without power. You cannot have heavy equipment, even with the capital intensity that the oil sector requires, without proper power to be able to assist in those activities," Hei stated.

Hei concluded by urging the Ministry of Industries, Mines and Energy to provide a predictable timeline so that local companies can prepare for their roles in the value chain. He cautioned that without policy clarity, mobile international capital could shift toward other emerging oil hubs, potentially leaving Namibia's infrastructure projects in limbo.