by Fanuel Shinedima
The Namibia Youth Energy Forum (NYEF) wishes to express its full, unequivocal and principled support for the proposed acquisition by Nasan Energies Namibia (Pty) Ltd of 53 Engen and Shell-branded service stations from Vivo Energy Namibia, subject to the approval of the Namibian Competition Commission (NaCC).
As a national youth-led energy body committed to inclusive participation, sustainable development, and economic transformation in Namibia’s energy sector, we view this transaction as a landmark moment in advancing genuine local ownership and long- term market resilience within the petroleum industry.
1 Advancing Meaningful Local Ownership
For decades, Namibia’s downstream petroleum market has been dominated by multinational operators. The emergence of Nasan Energies as one of the first 100% wholly Namibian-owned major oil marketing companies represents a transformative shift toward economic sovereignty.
This transaction aligns directly with national calls for Namibians to take ownership of strategic
economic sectors, including energy. Local ownership ensures that profits are reinvested in
Namibia, jobs are created for Namibians, and decision-making reflects local priorities rather
than offshore corporate interests.
Youth across Namibia have consistently called for structural inclusion in high-value sectors of
the economy. Supporting indigenous enterprises like Nasan Energies is not merely symbolic — it
is foundational to building intergenerational wealth and opportunity.
2 Strengthening, Not Weakening, Competition
We acknowledge the concerns raised by the NaCC regarding market concentration and security of supply. However, it is critical to assess the transaction within its proper regulatory and historical context.
The divestment conditions imposed following Vivo Energy’s 2024 acquisition of Engen were specifically designed to reduce market concentration and create space for new entrants. Nasan Energies represents precisely the type of empowered local entrant envisioned by that process.
Blocking or unduly constraining this transaction risks entrenching multinational dominance and sending a discouraging message to indigenous investors seeking to scale in regulated industries.
A strong, locally rooted competitor can enhance competitive dynamics by:
– Introducing differentiated pricing strategies and customer models.
– Promoting locally responsive management.
– Increasing accountability to domestic stakeholders.
– Reinforcing policy alignment with Namibia’s development objectives.
3 National Security of Fuel Supply
Security of supply is a legitimate and serious concern. However, concentration risk is not solely determined by ownership percentages; it is also influenced by infrastructure diversification, supply contracts, storage capacity, and operational resilience.
A financially disciplined, well-capitalized Namibian operator with a strong balance sheet can
enhance supply security by:
– Diversifying procurement channels.
– Investing in local logistics and storage infrastructure.
– Building redundancy into distribution networks.
– Ensuring faster, locally accountable crisis response mechanisms.
Excessive fragmentation in a strategic sector can also weaken security of supply if operators lack sufficient scale. A balanced structure with strong, regulated players — including arobust indigenous operator — can strengthen resilience.
4 Consumer Choice and Market Fairness
The argument that consumer choice diminishes when a local operator grows must be carefully scrutinized. True consumer welfare is measured not only by the number of brands displayed at forecourts, but by:
– Price competitiveness.
– Service quality.
– Geographic coverage.
– Transparency and accountability.
A Namibian-owned oil marketing company competing at scale can increase pressure on existing players to innovate and remain competitive. The presence of Nasan Energies as a major local player broadens — rather than narrows — the structural diversity of the market.
5 Youth, Transformation, and Economic Justice
Namibia’s youth constitute the majority of the population. Yet participation in capital-intensive industries such as petroleum has historically been limited. This transaction symbolizes more than a commercial deal — it represents a generational shift in economic participation. It demonstrates that indigenous entrepreneurs can enter, compete, and lead in strategic sectors previously dominated by global conglomerates. If Namibia is serious about economic transformation, youth empowerment, and reducing inequality, we must create pathways for local firms to scale responsibly.
We call upon the Namibian Competition Commission to conduct its assessment in a manner that:
– Upholds competition principles.
– Safeguards national security of supply.
– Protects consumers.
– Advances inclusive economic participation.
– Supports indigenous enterprise development.
We believe this transaction represents:
– A milestone in indigenous ownership.
– A strategic opportunity for economic transformation.
– A catalyst for youth inclusion in the energy value chain.
– A step toward long-term national energy resilience.
We stand firmly behind locally owned enterprises that seek to operate responsibly, competitively, and in alignment with Namibia’s development agenda. Namibia’s energy future must be inclusive, competitive, and sovereign.
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