South African corporations are consolidating their presence in Namibia as the country’s oil and gas sector moves from exploration towards potential large-scale production. This development is positioning Namibia as an emerging hub of energy-driven growth within the Southern African region.
The diversified industrial group Bidvest has committed R120 million to expanding logistics capacity in Namibia. Its investment includes a multipurpose terminal and import warehouse intended to accommodate rising cargo volumes linked to oil and gas activities. Bidvest’s chief executive, Mpumi Madisa, stated that the group has observed significant growth across its Namibian operations in freight, stationery, office automation and furniture, with logistics increasingly shaped by oil sector requirements.
Parallel to these industrial moves, the financial sector is also recalibrating. Nedbank, one of South Africa’s leading banks, has reaffirmed its commitment to financing projects in Namibia. Nedbank executives have engaged both Namibian government officials and TotalEnergies, which discovered light oil and gas at the Venus prospect in 2022, to explore financing models that align with Namibia’s evolving upstream petroleum policy. TotalEnergies is reported to be considering a final investment decision valued between US$15 billion and US$20 billion, with development potentially spanning five years.
Legal services are responding to the changing investment climate. Prominent South African law firms, including Cliffe Dekker Hofmeyr, Bowmans and ENS, have extended their presence in Namibia. Their focus has been on guiding investors through regulatory requirements such as local content integration, environmental compliance and fiscal arrangements. Policymakers are finalising a local content framework that is expected to ensure broader Namibian participation in the oil economy, reinforcing the state’s commitment to inclusive growth.
These shifts are underscored by Namibia’s recent ranking as Africa’s leading foreign direct investment destination in the 2025 Greenfield FDI Performance Index. The country placed second globally, highlighting investor confidence in its capacity to convert natural resource potential into broader economic opportunity. According to the United States International Trade Administration, should current oil discoveries prove commercially viable, Namibia could be among the world’s top fifteen oil producers by 2035.
Yet analysts caution against interpreting the oil boom as a singular trajectory. Economist Casey Sprake of Anchor Capital notes that Namibia’s economic outlook reflects both opportunities and vulnerabilities. On the one hand, the country’s policy-driven framework, fiscal incentives and currency peg to the South African rand create stability. On the other, structural challenges such as income inequality, fiscal pressures and institutional dependence remain.
Namibia’s growth prospects extend beyond hydrocarbons. Its well-established mining sector, expanding agricultural base and emerging hydrogen strategy broaden its economic landscape. This diversified foundation is appealing to South African investors seeking regional opportunities that balance familiarity with frontier potential.
For many observers, Namibia’s appeal lies not only in its resource endowment but in its legal protections, infrastructure and governance frameworks that continue to support cross-border investment. The country’s tax regime, coupled with the ability to repatriate profits, further bolsters its attractiveness in a competitive continental environment.
Namibia’s unfolding oil and gas story thus exemplifies the interwoven nature of Southern African economies. South African companies, from logistics to finance and law, are positioning themselves at the forefront of this shift, reflecting both immediate commercial opportunities and longer-term regional integration. The challenge for Namibia will be to harness this momentum into a sustainable growth path that is inclusive, resilient and regionally interconnected.
