Namibia is only partially prepared to govern its emerging oil and gas industry.
A new assessment by the Institute for Public Policy Research gave the country a readiness score of 2.37 out of five.
IPPR director Graham Hopwood has cautioned that key weaknesses must be addressed before commercial oil production begins.
The Namibia Oil and Gas Governance Readiness Scorecard assessed eight areas, including licensing transparency, contract governance, revenue management, environmental protection, local content, and corruption prevention.
The report acknowledges that Namibia has important foundations in place that include petroleum legislation, a taxation framework, established institutions, and a functioning democracy.
It also recognises environmental assessment requirements and oversight structures such as Parliament, the Auditor-General and the Anti-Corruption Commission and the media.
However, the IPPR said these foundations do not automatically translate into effective governance.
The legal and regulatory framework received the highest score of 3.27 out of five, while corruption prevention and integrity scored the lowest at two.
Other weak areas include local content and economic inclusion, which scored 2.10, and public oversight, participation, and transparency, which received 2.11.
The report also touched on limited public access to petroleum agreements, difficulties obtaining information about the actual owners of companies, and uncertainty over the responsibilities of institutions overseeing the sector.
Hopwood explained.
“We have a functioning democracy, which may serve as our strongest defense against the rise of corruption in this sector. As long as an independent media exists, and as long as it possesses the capabilities for thorough investigation, we have a crucial line of defense. Additionally, an active and committed civil society plays an essential role.”
Despite these existing safeguards, Hopwood stressed that more needs to be done to ensure transparency and accountability and strengthen safeguards against conflicts of interest and corruption.
The IPPR recommends that the government publish petroleum licensing decisions, contracts, and company ownership information.
It also wants clearer rules on how petroleum revenue will be managed and spent and is calling for more prominent parliamentary oversight and the implementation of an enforceable local content framework.
Environmental monitoring, offshore oil spill preparedness, and public access to information are among the other areas requiring attention.
The IPPR highlighted that Namibia still has an opportunity to address these weaknesses before commercial production begins, to ensure that the country's petroleum resources are managed in the public interest and that their benefits extend to Namibians.