Namibia’s Nuclear Future: Leveraging Uranium for Energy Independence

By Nhika Vassallo, Associate in Corporate & Commercial Law, and Magano Erkana, Director in Banking, Finance & Projects at Cliffe Dekker Hofmeyr (CDH) Namibia

Namibia, the world’s third-largest uranium producer, contributes approximately 10% of global uranium output, which is no small feat for a small nation. Namibia is currently able to produce about 60% of its energy demand locally while importing the shortfall from neighbouring nations. This dependency, coupled with rising energy demands, underscores the need for energy diversification. With hydropower, solar, and wind dominating its current energy mix, nuclear power offers a promising solution to achieve energy security, reduce carbon emissions, and support economic growth aligned with Namibia’s Vision 2030.

Historical ambitions and policy development

Namibia’s nuclear energy aspirations emerged in the late 2000s. In 2010, French company Areva conducted a feasibility study for nuclear power generation as part of its Trekkopje project. In 2011, the Ministry of Mines and Energy, with assistance from Finland’s Nuclear and Radiation Authority, drafted a nuclear policy targeting electricity generation by 2018. However, progress stalled due to the absence of a finalised policy, and a 2007 moratorium on uranium exploration licences highlighted regulatory gaps, including legal challenges. These early efforts have set the foundation for renewed ambitions, starting with lifting the moratorium on new exploration licences in nuclear fuels in 2017.

Recent developments and leadership push

In April 2025, President Netumbo Nandi-Ndaitwah announced plans to initiate discussions for Namibia’s first nuclear power plant, emphasising the use of the country’s uranium for national development. During a visit to the Rössing Uranium Mine, she called for strategic partnerships to realise this vision as Namibia pushes for resource value addition and beneficiation.

Namibia is not without international support; Rosatom has expressed support for a project that will play a central role in the development and operation of a future nuclear power plant. Similarly, in a meeting with former President Nangolo Mbumba in January 2025, the Chinese Foreign Minister reaffirmed China’s commitment to assisting Namibia in future development and investment opportunities.

In September 2025, Cabinet approved Namibia’s Nuclear Industry Strategy, a move reported to lay the foundation for Namibia’s nuclear energy development sector. Nam-Nuclear seemingly has the necessary political support, potentially leading to capacity that exceeds local production shortfalls.

Why would Namibia consider nuclear energy in a net-zero emissions context?

·       Energy independence: A nuclear plant could reduce reliance on imported electricity, enhancing energy security.

·       Low carbon emissions: As a low-carbon energy source, nuclear power supports Namibia’s climate commitments.

·       Economic growth: Construction and operational needs could create jobs, stimulate infrastructure development, and ensure that present and future energy                            demands are met.

·       Resource availability: Locally sourced uranium ensures energy independence.

The incentives are quite clear. Namibia currently has a development goal focused heavily on value addition, resource beneficiation, infrastructure development, and energy independence. With developments in small modular reactors, this might be more than a pipe dream for Namibia; given a current consumption of 750 MW, future projected energy demand, and international co-operation, a nuclear plant could meet domestic demand and turn Namibia into an energy exporting country.

Challenges and concerns

The development of a nuclear power plant in Namibia may become the nation’s most ambitious project yet, but it is certainly not without its challenges. Firstly, the high capital costs for building a nuclear plant require significant investment, posing financial challenges in sourcing funding on reasonable terms and ensuring a return on investment for investors. A significant development in favour of this project is the World Bank’s decision to end its ban on financing nuclear energy projects. This policy shift also includes considering the accelerating potential of small modular reactors.

Secondly, Namibia currently lacks technical expertise. Limited local skills necessitate costly imports of expertise and force Namibia into partnerships with developed nations. This creates concerns about safety, environmental impact, and the geopolitical risks associated with such partnerships. Partnerships with any geopolitical powerhouse may create dependencies, potentially affecting relations with other opposing global powers. At the same time, as a small developing nation, Namibia must leverage available relationships and assistance from those who offer it.

Beyond the technical difficulties of this project, navigating the geopolitical landscape while balancing Namibia’s ambitions will be challenging. However, Namibia, known as the ‘Land of the Brave,’ is prepared for the task, and its current administration has continued to support this project.

ENDS.