IPPR raises concerns over transparency in Namibia’s mining sector

Niël Terblanché

The Institute for Public Policy Research (IPPR) has expressed its concern regarding the lack of transparency and accountability in Namibia’s mining sector.

Graham Hopwood, the Director of the IPPR, stressed the urgent need for more openness in the sector, especially in areas like corporate social responsibility, employment practices, and tax payments to the government.

Hopwood spoke at a two-day alternative mining indaba in Windhoek and his remarks come at a time when the mining industry, one of Namibia’s main economic pillars, faces challenges in maintaining transparent operations.

The IPPR has been vocal about the potential risks of corruption and unethical practices due to the opacity in the allocation of exploration licenses and the conduct of multinational mining companies.

The absence of transparent mechanisms could lead to malpractices like tax evasion and mispricing tactics, as highlighted in the IPPR’s research paper titled “Namibia’s New Frontiers: Transparency and Accountability in Extractive Industry Exploration”.

The concern is not just limited to financial transactions. There is an emphasis on the need for public awareness regarding the allocation of mining rights and exploration licenses.

According to Hopwood, such transparency is critical in ensuring that natural resources benefit the Namibian citizenry first and foremost.

However, the prolonged discussion on updating the Mineral Act originally passed in 1992, still looms large, with Hopwood urging for an expedited process.

The alternative mining indaba and issues that developed during the event, suggest a critical juncture for Namibia’s mining sector, as calls for greater transparency and stricter regulatory mechanisms grow louder.

According to Hopwood, the future of the industry could hinge on how these issues of transparency and accountability are addressed.

In response to these concerns, the Deputy Director in the Ministry of Mines and Energy, Erastus Shivolo, mentioned that ongoing consultations aim to ensure the sustainable contribution of the mineral sector to socio-economic development.

Shivolo said these efforts include promoting investment, encouraging local participation, and supporting research initiatives.

Meanwhile, the Chamber of Mines of Namibia reiterated its commitment to integrity, transparency, and accountability.

The Chamber, a member-based organization, actively works to influence policies and maintain a regulatory environment conducive to investment and growth in the Namibian mining industry.