Namibia reorganizes oil ministry in move to increase efficiency

(Bloomberg) – Namibian President Netumbo Nandi-Ndaitwah’s weekend cabinet reshuffle will bring oil and gas more directly under her control, as international explorers look to increase offshore discoveries. 

Drilling activity has grown since TotalEnergies SE and Shell Plc made initial finds in 2022, even as some have turned out not to be viable for commercial development and written off. Still, the prospect of oil production may boost the sparsely populated southwest African nation.  

Nandi-Ndaitwah “sees oil and gas as a strategic factor” for the nation and bringing it under the presidency may make dialogue with explorers more efficient, said Graham Hopwood, a special adviser to consultancy Horizon Engage.

Mines and Energy Minister Tom Alweendo stepped down from the post he’s held since 2018, according to a post on X. Natangwe Ithete was named deputy prime minister and minister of mines in the new cabinet announced March 22.

“The new emerging industries of oil and gas need to be managed in the manner that maximize benefits for all Namibians” and will fall under the office of the president, Nandi-Ndaitwah said in a statement. 

The dismissal of Finance Minister Ipumbu Shiimi, who brought the national debt down, was more of a shock in the cabinet shuffle, according to Hopwood. The move indicates Nandi-Ndaitwah “wants to open the spending taps,” he said. 

Shiimi is replaced by Ericah Shafudah, a 20-year veteran of the finance ministry who has held a range of senior positions including executive director of finance.