Namibia’s approach to green hydrogen offers invaluable guidance for South Africa as it positions itself in the emerging global energy landscape.
Namibia’s new growth agenda embraces the global green industrialisation impulse that has been propelled by climate awareness and the just transition. Central to this agenda is green hydrogen production, which harnesses Namibia’s abundant renewable energy potential to attract global investment, build local-derivatives value chains and enhance its regional influence.
However, it is not the only African country with its eyes on green hydrogen. South Africa, among others, has also sought to capitalise on the need for decarbonisation, to lessen its dependence on hydrocarbons and create a market for export. It has made headway in the development of a hydrogen economy, with the cabinet greenlighting an inter-ministerial committee on it in 2024.
Namibia’s progress can offer crucial policy — and practical — lessons on the groundwork needed to get the South African Hydrogen Society Roadmap (2021) and Green Hydrogen Commercialisation Strategy (2023) operating.
Fit-for-purpose policy must be a priority
Emerging industries test the adaptability and robustness of existing policy frameworks. The Namibian case has shown that they are often not comprehensively equipped to handle the unique demands and complexities of green hydrogen.
Developments in the industry have brought up the need for safety legislation that appropriately regulates the production, storage, transport and use of hydrogen and its derivatives and the need to reassess the Environmental Management Act, Standards Act of 2005 and the Water Resources Management Act of 2013, among others, to address the offtake elements of hydrogen and its derivatives.
This is a call to action. The just transition is knocking at the world’s door and it would be naive to pretend that the world can stop and wait for the bureaucrats and politicians to decide on policy frameworks.
However, policy must evolve swiftly alongside emerging industries to safeguard both the state and its investors. Namibia’s investment in developing a local-content policy that is fit for purpose and beneficial to locals is a good example of this, with a draft policy designed specifically for oil and gas being developed in November 2023 and talks for a green hydrogen-specific one underway.
Effective, strategic policy development and implementation is essential to ensuring that foreign investment yields sustainable and impactful results for the South African people.
Globally oriented and FDI-intensive industries are shaped by geopolitics
Namibia’s green hydrogen sector illustrates the challenges faced by globally oriented foreign direct investment-dependent industries which are deeply dependent on geopolitical and financial forces.
The Dâures Green Hydrogen project, one of Namibia’s better-known pilot projects, recently sought additional funding from the German government after investing N$232 million in developing its green hydrogen village. This reliance on external capital highlights the vulnerability of small economies when pursuing large-scale, capital-intensive projects in an ever-shifting global energy market.
However, Namibia has taken proactive steps to mitigate these risks, notably through the SDG Namibia One fund — a government-led initiative aimed at balancing foreign investment with domestic interests.
A key example is Namibia’s acquisition of a 24% stake in the Hyphen Hydrogen Energy project through a €23 million share agreement in December 2024. This move not only ensures substantial national involvement but also sets a precedent for leveraging international partnerships without compromising domestic sovereignty.
Cultivating social legitimacy cannot be underestimated
There is an inclination to believe that if an industry can be established and show tangible positive results over time, then cultivating social legitimacy is unnecessary. This is a significant misunderstanding of democratic culture and a strategic miscalculation.
The sensitivity of large-scale foreign investment in Africa cannot be understated as history has witnessed resource predation without mutual benefit. To further complicate matters, green hydrogen, as an emerging and highly technical industry, unlike its predecessor mineral mining, presents significant challenges in comprehension and accessibility for the public.
Social legitimacy is what stands between a project that is widely supported and protesters rallying outside investment conferences.
To cultivate social legitimacy, an education programme must accompany, and preferably be part of, the creation of new industries.
When the late Namibian president Dr Hage Geingob established the Inter-Ministerial Green Hydrogen Council in 2021, what followed was an announcement at COP27 the following year, the signing of international agreements and the launch of pilot projects.
Namibians started hearing the term “green hydrogen” everywhere, with little understanding of what it was, outside of the fact that it included solar and wind energy and that millions of euros would soon be flowing into the country. Although public lectures and educational seminars would change this around 2023, the new industry was approached with suspicion by many.
It cannot be understated that, from a governance perspective, critical and robust analysis of new industries is vital. However, investors and industry builders must learn from history — including the rise of the automobile — and recognise that emerging industries are often perceived as lacking legitimacy.
Therefore, proponents must work, to not only demystify them, but also prove their value, reliability and necessity to the public. This can be achieved with vertically integrated partnerships, empowering civil society with training and knowledge which can be disseminated to the public. Civil society is the preferred actor in this instance because of its well-established networks and trust within the community.
For South Africa, Namibia’s strategy offers critical lessons, including diversifying funding sources, fostering government-led equity participation and balancing geopolitical dependencies with robust national frameworks. These approaches are pivotal in safeguarding economic sovereignty while navigating the complex demands of global green energy markets.
In summary, Namibia’s approach to green hydrogen offers invaluable guidance for South Africa as it positions itself in the emerging global energy landscape.
While Namibia navigates the complexities of policy adaptation, social legitimacy and geopolitical dependencies, it underscores the importance of strategic foresight, diversification of funding sources and balancing foreign investments with national interests.
For South Africa, the key takeaway is the need for agile, fit-for-purpose policies and proactive engagement with local communities to ensure broad-based support.
As both nations push for a just energy transition, embracing these lessons will be crucial for achieving sustainable, inclusive and resilient green hydrogen industries.
Suzie Shefeni is a public policy researcher and political analyst interested in security related to energy and emerging technologies.
Vivian !Nou-/Gawaseb is a scientific researcher on governance, green hydrogen and sustainable urban development. The views expressed here are his own.
