Tukomani Investments Namibia serves as one of Namibia’s premier project development, project finance and business support service providers for the country’s energy and mining sectors. On the back of major oil discoveries in the Orange Basin and a $10-billion green hydrogen megaproject underway, opportunities are abound for local and foreign investors to participate in Namibia’s energy space. Energy Capital & Power spoke with Theodor Nghilalulwa, CEO and Co-Founder, and Tarah Haulinenu Nghilalulwa, Co-Founder and Head of Strategy and Operations, about Namibia’s favorable policy and regulatory framework and latest project finance transactions.
With a high number of state-owned enterprises, what progress has Namibia made in terms of public and corporate governance?
Given any corporate governance, there should be structures, frameworks and practices that aim to control and oversee the management activities within any corporation, to ensure that the corporation speaks to its mandate as it was established. In the context of Namibia, we have the NAM Code (2014), which aims to oversee that any corporate industry that operates within Namibia has the ethical codes of conduct in place for them to be able to effectively govern their operations. The Namibian government itself has done quite a lot in terms of setting up different boards and commissions, which can oversee different activities of different companies.
What opportunities are there for investors seeking to participate in Namibia’s upcoming hydrogen developments?
In terms of the green hydrogen project, the Namibian government signed an agreement with Hyphen Hydrogen Energy, which was formalized last May, ensuring that Hyphen will oversee the project, estimated to cost around $10 billion and with a production of about 2 million tons of green ammonia per year. In terms of key opportunities within this area, we are setting up a venture capital investment fund to finance and sustainably manage projects in the region as a result of this development. We aim to play a role through collaborating with government agencies as well as other relevant stakeholders involved to ensure that this project is brought to a realization.
In terms of project finance transactions, which industries have been the most active, and what have been the most significant deals so far?
The most active sectors are energy, oil and gas, and mining, with the most notable being green hydrogen. We also have projects like Kudu gas, which is being developed by BW Energy. Another significant deal was the light oil discovery by TotalEnergies offshore Namibia in the Orange Basin. Another is the light oil discovery made about 270 km offshore Namibia by Shell Namibia. Another impactful deal is the recent rise of Paladin Energy, which has spent approximately $115 million on the Langer Heinrich Mine. There is also the acquisition of Rosh Pinah Zinc Mine from Trevali by Appian Capital Advisory. As you can see, Namibia is a country on the rise. These projects speak to the legislation in place, and also the favorable investment climate created by the government.
Are there any proposed legal or regulatory changes that may give rise to new opportunities in project development and finance?
Project development and finance, by nature, speaks to long-term investments. There has been a proposition to replace the Foreign Investment Act 27 of 1990 with a Namibian Investment Promotion Act, which aims to be more inclusive of not just foreign investors, but also local investors. It aims to broaden the participation and enhance partnerships between core financing projects by foreign direct investment, and then your local investors. One of the other proposed regulatory changes is that the Ministry of Mines and Energy is in the process of developing a national upstream petroleum local content policy aimed at enhancing the participation of locals in the upstream sector.
Energy Capital & Power is a strategic partner of the Namibia International Energy Conference (NIEC) – taking place in Windhoek on April 23-25, 2024. The 6th annual conference unites industry leaders, business executives and policymakers to engage in dialogue, exchange ideas, create new partnerships and identify strategies to foster a prosperous energy industry in Namibia and beyond. For more information, please visit https://www.nieconference.com/
