Namibia proposes energy dividends for citizens
Towards inclusive wealth for all
Namibia is exploring a system that would channel a share of resource revenues directly to its citizens.
Namibia has proposed a direct redistribution of natural resource wealth to its citizens in the form of cash dividends from energy revenues.
The announcement came at the opening of the 58th executive committee meeting of the Southern African Power Pool (SAPP) at Swakopmund on Thursday, where energy ministers and utility leaders gathered to address the future of electricity development across the SADC bloc.
“The outcomes of energy development must benefit all Namibians on a socio-economic level,” said energy deputy minister Gaudentia Kröhne on behalf of industrialisation, mines and energy minister Natangwe Ithete.
“We must consider the implementation of a cash transfer mechanism so that a portion of resource revenues can go directly to citizens.”
The proposed policy, inspired by Alaska’s permanent fund dividend, is part of a broader push by Namibia to ensure its growing energy sector – driven by solar, wind, oil, gas and emerging hydrogen production – translates into inclusive, generational wealth.
Kröhne detailed plans for the Namibia Future Generations Fund, modelled on the Norwegian sovereign wealth framework, which will invest energy revenues in public infrastructure, education, healthcare, water and electrification, with strict transparency and capped withdrawals.
“No Namibian in any part of the country should lack electricity while foreign corporations reap huge profits,” she said. “No families or communities should be displaced without just compensation.”
Socio-economic justice
The meeting brings together 12 SADC member states under the SAPP banner. While cross-border electricity trading and infrastructure development are core to the meeting’s agenda, Namibia’s stance has pushed socio-economic equity and energy justice to the front.
At the same time, Namibia outlined its ambitions to become both energy self-sufficient and a net regional exporter by increasing domestic energy capacity from current levels to 900 megawatts (MW) by the 2027/28 fiscal year.
“Our ambition is not limited to domestic energy security,” Kröhne told delegates. “We aim to become a major energy exporter.”
Currently, Namibia imports more than 60% of its electricity. The government’s strategy includes major renewable and gas infrastructure projects such as the Rosh Pinah Solar PV Plant (100 MW), the Omburu Solar PV Project (80 MW), Otjikoto Biomass (40 MW), and a series of distributed IPP projects totalling 120 MW.
These are to be supported by battery energy storage and partnerships with international financial institutions, including the World Bank.
Clean energy
Beyond infrastructure, Kröhne called for the full mobilisation of Namibia’s innovation capacity, including partnerships to deploy artificial intelligence for demand forecasting, mini-grid technology for rural electrification and local manufacturing for solar panels and electrolysers.
Namibia’s energy vision is also tightly linked to the Hyphen green hydrogen initiative, which aims to produce 300 000 tonnes of green hydrogen annually. According to the deputy minister, combined with abundant solar and wind resources, it could transform Namibia into a key exporter of clean energy in the coming decades.
“Our only real choice is whether we become spectators in the global energy transition – or take the lead in this transformation,” Kröhne said. “Let us use the revenues from our fossil fuels to lay a solid foundation while we harness our nuclear and renewable energy sources to secure our legacy.”
The announcement came at the opening of the 58th executive committee meeting of the Southern African Power Pool (SAPP) at Swakopmund on Thursday, where energy ministers and utility leaders gathered to address the future of electricity development across the SADC bloc.
“The outcomes of energy development must benefit all Namibians on a socio-economic level,” said energy deputy minister Gaudentia Kröhne on behalf of industrialisation, mines and energy minister Natangwe Ithete.
“We must consider the implementation of a cash transfer mechanism so that a portion of resource revenues can go directly to citizens.”
The proposed policy, inspired by Alaska’s permanent fund dividend, is part of a broader push by Namibia to ensure its growing energy sector – driven by solar, wind, oil, gas and emerging hydrogen production – translates into inclusive, generational wealth.
Kröhne detailed plans for the Namibia Future Generations Fund, modelled on the Norwegian sovereign wealth framework, which will invest energy revenues in public infrastructure, education, healthcare, water and electrification, with strict transparency and capped withdrawals.
“No Namibian in any part of the country should lack electricity while foreign corporations reap huge profits,” she said. “No families or communities should be displaced without just compensation.”
Socio-economic justice
The meeting brings together 12 SADC member states under the SAPP banner. While cross-border electricity trading and infrastructure development are core to the meeting’s agenda, Namibia’s stance has pushed socio-economic equity and energy justice to the front.
At the same time, Namibia outlined its ambitions to become both energy self-sufficient and a net regional exporter by increasing domestic energy capacity from current levels to 900 megawatts (MW) by the 2027/28 fiscal year.
“Our ambition is not limited to domestic energy security,” Kröhne told delegates. “We aim to become a major energy exporter.”
Currently, Namibia imports more than 60% of its electricity. The government’s strategy includes major renewable and gas infrastructure projects such as the Rosh Pinah Solar PV Plant (100 MW), the Omburu Solar PV Project (80 MW), Otjikoto Biomass (40 MW), and a series of distributed IPP projects totalling 120 MW.
These are to be supported by battery energy storage and partnerships with international financial institutions, including the World Bank.
Clean energy
Beyond infrastructure, Kröhne called for the full mobilisation of Namibia’s innovation capacity, including partnerships to deploy artificial intelligence for demand forecasting, mini-grid technology for rural electrification and local manufacturing for solar panels and electrolysers.
Namibia’s energy vision is also tightly linked to the Hyphen green hydrogen initiative, which aims to produce 300 000 tonnes of green hydrogen annually. According to the deputy minister, combined with abundant solar and wind resources, it could transform Namibia into a key exporter of clean energy in the coming decades.
“Our only real choice is whether we become spectators in the global energy transition – or take the lead in this transformation,” Kröhne said. “Let us use the revenues from our fossil fuels to lay a solid foundation while we harness our nuclear and renewable energy sources to secure our legacy.”
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