Namibian government fund that finances energy infrastructure projects and absorbs fuel price under-recoveries to protect consumers from price volatility.
The Namibian and Angolan governments have finalised a N$4-billion agreement to build the Angola-Namibia Interconnector, a 160km transmission line linking Angola to the Southern African Power Pool for the first time. Namibia is solely financing the project through its National Energy Fund and expects to receive 300MW of firm power.
Why it matters
Namibia is investing N$4 billion to build critical power infrastructure that will deliver 300MW of electricity to the country while positioning it as a regional energy leader in Southern Africa. This addresses growing energy demand and supports Namibia's broader goal of ensuring affordable and accessible power for all citizens.
The Namibian and Angolan governments have finalised a N$4-billion agreement to build the Angola-Namibia Interconnector, a 160km transmission line linking Angola to the Southern African Power Pool for the first time. Namibia is solely financing the project through its National Energy Fund and expects to receive 300MW of firm power.
Namibia and Angola have signed binding agreements to jointly develop a cross-border power interconnector (ANNA), featuring a 166-kilometre transmission line linking the Kunene region to Cahama and a further 270-kilometre line between Omatando and Otjikoto. The project, estimated at N$941 million for the interconnector component and set for completion by 2029, aims to enhance regional energy security, diversify Namibia's electricity supply, and enable Angola to leverage its renewable and hydro resources across the Southern African region.
Service stations in Rehoboth ran out of fuel on Tuesday as residents rushed to fill up ahead of a fuel price increase, with only two of five stations still supplying fuel by afternoon. Most stations have begun rationing supplies, and authorities have urged the public to avoid panic buying while maintaining that Namibia's overall fuel stocks remain adequate.
Escalating geopolitical tensions in the Middle East are pushing global oil prices higher, affecting Namibia's fuel costs. The Namibian government has temporarily reduced fuel levies by 50% through June and is using the National Energy Fund to cushion price volatility, though economists warn of potential inflationary impacts on transport, production, and household costs if prices remain elevated.
Minister Modestus Amutse briefed the media that Namibia's fuel supply remains stable with adequate stocks to meet demand for one to two months, and that the main risk from global geopolitical tensions is price-related rather than supply-related. The government has reduced fuel levies by 50% and the National Energy Fund will absorb under-recoveries of approximately N$500 million monthly for at least three months to protect consumers from price volatility.
Petrol will increase by N$2.50 per litre and diesel by N$4 per litre on 1 April, announced by the Minister of Industries, Mines and Energy, citing increased shipping and insurance costs following disruption to Middle East oil routes. The Opposition IPC criticizes the hike as an assault on struggling Namibians, while the government says it is providing relief through a 50% cut in fuel levies and N$500 million support from the National Energy Fund.
The Minister of Mines and Energy announced fuel price increases effective April 1, 2026, citing sharp rises in international crude oil prices driven by Middle East geopolitical tensions and the weakening Namibian dollar. The Cabinet has temporarily reduced fuel levies by 50% for three months to April–June 2026, with the National Energy Fund absorbing an under-recovery of approximately N$500 million.
Energy minister Modestus Amutse announced that petrol prices will increase by N$2.50 per litre and diesel by N$4 per litre from 1 April, driven by surging international oil prices, Middle East tensions, and currency weakness. The government will cut fuel levies by 50% for three months and allocate N$500 million from the National Energy Fund to cushion the impact on consumers.
Namibia's National Oil Storage Facility, a N$6.5 billion investment in Walvis Bay designed to hold 75 million litres of fuel, is undergoing policy reforms to establish market-related tariffs and attract local entrepreneurs to its storage capacity. The facility aims to balance its role as a strategic energy buffer against global supply disruptions with expanded commercial participation and improved operational sustainability.
The National Oil Storage Facility handles all petroleum products entering Namibia and is considering opening storage capacity to local entrepreneurs, currently hosting only one private company. The facility, which requires strict international safety and quality standards, is reviewing its fees to provide competitive rates and attract applications from Namibian businesses seeking storage for diesel, ULP, and jet fuel.