Namibian SMEs face readiness challenges for upcoming oil and gas contracts
via The Namibian2 min read
Namibian businesses are urged to prepare for significant opportunities in the oil and gas sector as TotalEnergies is expected to make its final investment decision for the Orange Basin before the end of 2026. This decision will trigger substantial procurement and supply chain development. The sector requires raw materials, infrastructure services, and technical expertise from local businesses. However, many Namibian small and medium enterprises SMEs are not yet positioned to compete effectively due to three main barriers: access to finance, certification gaps, and the absence of formal business systems. Oil and gas contracts are large with long payment cycles, posing a challenge for SMEs with limited balance sheets. International quality management standards like ISO 9001 are often baseline requirements, and operators demand documented processes, audited financials, and formal health, safety, and environment policies. These barriers are not insurmountable. SMEs are advised to pursue ISO 9001 certification through the Namibia Standards Institution, register on vendor databases such as TotalEnergies' global supplier portal and the National Petroleum Corporation of Namibia, and engage with financial institutions like the Development Bank of Namibia and Petrofund for financing options. Mutindi Jacobs, an oil and gas lawyer, emphasizes that contracts will be awarded, and closing the readiness gap requires proactive steps from local businesses.
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This summary was AI-generated from a story originally published by The Namibian.
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