Windhoek: Namibia must strengthen its institutions, build domestic expertise and establish sound regulatory frameworks before oil production begins to ensure the country derives lasting economic benefits from its petroleum resources, Bank of Namibia (BoN) Governor Ebson Uanguta has said.
According to Namibia Press Agency,Speaking at the 2026 BoN Annual Symposium here on Thursday, Uanguta said the pre-production phase presents a critical opportunity to prepare the economy for the transition to oil production.
The symposium was held under the theme, 'Namibia's Pre-Oil Production Phase: Assessing Choices That Unlock Long-Term Economic Value.'
Uanguta said oil discoveries could attract investment, generate export earnings and government revenue, and stimulate new industries, but warned that these benefits were not guaranteed.
'The choices we make now will determine whether oil production helps build stronger institutions, develop skilled workers and capable businesses, and create a more productive economy,' he said.
He cited the experiences of Nigeria and Guyana as important lessons for Namibia, noting that while petroleum resources could support domestic business development, they could also expose countries to revenue volatility, weak governance and excessive dependence on oil.
Uanguta stressed that Namibia should prioritise developing local skills and businesses, saying participation in the petroleum sector should extend beyond ownership and procurement to include technical expertise, entrepreneurship, technology and knowledge development.
'Preparation cannot wait for production,' he said.
He said BoN was strengthening its preparedness by incorporating oil and gas variables into its macroeconomic analysis and enhancing financial stability monitoring to identify risks linked to large projects, foreign currency exposure and concentration in the sector.
The governor added that effective coordination among institutions, transparent revenue management and investment in productive assets would be essential to ensure petroleum wealth benefits the wider economy.
He also called for stronger links between the oil and gas industry and other sectors, noting that private investment, entrepreneurship and access to finance would be important in helping Namibian businesses participate in the emerging industry.
Uanguta urged stakeholders to consider whether the country's policies, institutions, skills base and economic structure were ready for production, and how petroleum resources could support a diversified and resilient economy.
He said decisions made during the pre-production phase would have long-term consequences, making early preparation essential to securing lasting national value.