Call for Namibia to take royalties in gold

The Namibian government should begin receiving part of its royalties and dividends from mining operations in physical commodities such as gold, uranium and lithium, instead of relying solely on cash payments, a governing Swapo party lawmaker, Tobie Aupindi, said. 

Aupindi earlier this week called for the country to fundamentally overhaul how it manages and benefits from its natural resources.

Speaking during a capacity-building workshop organised by parliament’s standing committee on natural resources in Swakopmund, Mr Aupindi said Namibia remained rich in natural resources yet continued to struggle with unemployment, poverty and inequality. He argued this was because the country still relied heavily on an extractive economic model that exports raw materials, while industries, value addition and profits are created elsewhere.

"Why are so many Namibians still struggling in the midst of such wealth?" Aupindi asked delegates attending the workshop at the Swakopmund Plaza Hotel.

He said Namibia was blessed with diamonds, uranium, lithium, gold, copper, rare-earth minerals, offshore oil and gas reserves, marine resources, and renewable energy potential, including green hydrogen opportunities. Yet, he added, many citizens remained excluded from meaningful economic participation.

"Freedom without economic dignity is an unfinished liberation," Aupindi said.

The MP argued that Namibia must urgently transition from being merely an exporter of raw materials to becoming a producer of finished and semi-finished products capable of supporting industrialisation, manufacturing and long-term economic sovereignty.

"Namibia cannot continue to rely on an extractive economic system where raw materials are exported while value, industries, and profits are created elsewhere," he said.

Aupindi said every tonne of lithium exported without local processing represented lost factories, lost industrial growth and lost employment opportunities for Namibians.

"Every unprocessed diamond exported means another missed opportunity for local manufacturing, polishing, jewellery production, and skills development," he said.

He further argued that Namibia should progressively move toward prohibiting the export of certain raw minerals unless they are processed locally, saying such a policy would compel investment in beneficiation, manufacturing, and industrial development within the country.

The parliamentarian also raised concerns about multinational corporations dominating key sectors of the economy while local communities continue receiving limited benefits from the country’s natural resources.

"Namibians must not remain spectators in their own economy," Aupindi said.

He called for stronger local ownership requirements, increased Namibian participation in the mining, oil, gas, and energy industries, greater local representation in management structures, and expanded opportunities for Namibian entrepreneurs and professionals in the natural resources sector.

"The wealth beneath our soil belongs first and foremost to the people of Namibia," he said.

Aupindi’s proposal for the government to receive royalties and dividends in physical commodities formed one of the central recommendations of his address.

He said Namibia should build strategic national commodity reserves using minerals such as gold, uranium and lithium rather than relying exclusively on cash revenues from mining operations.

According to Aupindi, strategic reserves could help shield the country from inflation, global market instability, currency fluctuations and future economic shocks while strengthening long-term national sovereignty and intergenerational wealth preservation.

He referenced recent efforts by the Bank of Namibia to build gold reserves through agreements with mining companies. Still, he argued that the government should go further by directly taking part in its royalty interests in physical commodities.

“The government must take its royalty in physical commodity," Aupindi said.

The MP also warned that Namibia faces major risks as offshore oil and gas development accelerates.

"History teaches us that many resource-rich countries have suffered from what economists call the 'resource curse', where natural wealth leads not to prosperity, but to corruption, inequality, unemployment, environmental damage, and economic dependency," he said.

Aupindi called for deliberate planning before large-scale oil production begins and said Namibia must urgently strengthen local skills, institutions, legal frameworks and industrial capacity.

He argued that local content policies must ensure Namibians benefit directly through employment, procurement opportunities, technical training and business partnerships.

The parliamentarian further proposed the establishment of a national gas company to help Namibia retain strategic control over its future energy sector.

"And while we are talking about proven oil resources in place, the government must establish a national gas company that would help Namibia retain strategic control over its energy future," Aupindi said.

He also warned that Namibia faces shortages of local expertise in highly technical fields such as petroleum engineering, geology, marine operations, refining and energy infrastructure.

According to Aupindi, Namibia must urgently invest in universities, vocational training centres, scholarships and specialised technical programmes to prepare young Namibians for participation in emerging industries.

The lawmaker further stressed that natural resource governance must remain transparent, accountable, and people-centred.

He said parliament, labour unions, traditional authorities, civil society organisations, youth groups and local communities must all play stronger oversight roles in the management of Namibia’s natural resources.

Aupindi warned that corruption, secrecy and elite capture posed serious threats to Namibia’s long-term prosperity if governance systems remain weak.

"At the heart of all these proposals lies one central belief, that Namibia’s natural resources must improve the lives of ordinary Namibians," he said.

He said the country’s natural wealth should ultimately build roads, schools, hospitals, universities and industries while creating jobs, reducing inequality and strengthening Namibia’s sovereignty.

"This is not simply an economic debate. It is a national conversation about justice, ownership, dignity, and the future direction of our country," Aupindi said.