Namibia's Mineral Processing Push Faces Power Test as ECB Leaves Key Questions Open

Namibia's plan to process more of its minerals locally and build stronger manufacturing industries will depend partly on whether electricity supply is reliable, affordable and able to support energy-intensive businesses.

The issue reflects a wider problem across Southern Africa.

Speaking at the Southern African Development Community (SADC) Business Council Webinar Series this week, Executive Secretary Elias Magosi has warned that unreliable electricity, limited financing and skills shortages continue to constrain mineral benefication and industrial development.

He also identified efficient transport, technology transfer and targeted skills development among the barriers affecting the region.

For Namibia, the stakes are high. Turning minerals into higher-value products requires more than access to the resources themselves. Businesses need dependable power to run machinery, sustain production and keep costs under control.

Responding to questions from Business Pulse 360°, Electricity Control Board (ECB) spokesperson Nelson Muremi said the regulator continuously monitors the quality of electricity supply and requires corrective action when problems are identified.

"ECB constantly monitors quality of supply. Reports do indicate when there is a drop in quality. Such reports are monitored and corrective actions are demanded," Muremi said.

His response indicates that the ECB uses supply reports to detect declining service quality and calls for corrective measures when problems arise.

However, the response did not specify the current extent of supply challenges affecting industrial users, how often supply-quality problems are reported, or what corrective measures have already been implemented.

These details matter to businesses considering investment in mineral processing, where interruptions or unstable supply can disrupt production and raise operating costs.

Asked what measures are in place to support supply quality, Muremi said Namibia has several options, including the Modified Single Buyer (MSB) market model.

"Namibia has a lot of options in place to ensure good supply quality. Modified single buyer (MSB) is one of the options," he said.

The MSB model allows eligible customers to buy power from independent suppliers under specified conditions, rather than relying solely on their local distributor. Its potential relevance to industry is that it gives qualifying customers additional procurement choices.

Muremi did not explain how the model is currently benefiting mineral-processing businesses, whether it has lowered electricity costs for industrial users, or how it will support future demand from new processing facilities.

For a company looking to move beyond extracting and exporting raw minerals, electricity is central to the investment decision. A business considering a processing plant must establish whether enough power will be available, how reliable it will be, and whether electricity costs will let it compete with producers in other countries.

If supply is unreliable or too expensive, investors may be discouraged from building facilities locally, even where the minerals exist to support them.

The consequences extend beyond mining companies. Local processing can create opportunities for transport operators, equipment suppliers, maintenance firms and other small and medium-sized enterprises that serve industrial operations.

Without the infrastructure to support these activities, Namibia risks continuing to export raw materials while missing the chance to generate more economic value and employment at home.