A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry
SANDTON, South Africa, June 20, 2025/APO Group/ --
By Rachel Mushabati, Senior Associate Attorney & Country Head – CLG Namibia (www.CLGGlobal.com)

From Discovery to Delivery: Building a Legal Framework for Namibia’s Midstream Infrastructure (by Rachel Mushabati)
Namibia’s recent offshore oil discoveries mark a pivotal moment in the country’s energy sector. With major players such as Shell, TotalEnergies, QatarEnergy, and Galp uncovering significant reserves, Namibia is poised to become a key oil producer. However, while exploration and production activities have gained momentum, the midstream sector; involving transportation, storage, and refining of petroleum, remains underdeveloped.
A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry. CLG Legal and Business Advisory, with its extensive advisory experience across Africa, is uniquely positioned to support this transition. CLG has advised on midstream regulatory frameworks, infrastructure structuring, and investment promotion strategies in various jurisdictions, and brings this expertise to the Namibian context.
Understanding Midstream Infrastructure and Its Importance
Midstream infrastructure serves as the critical link between oil extraction and the end consumer. This includes pipelines, refineries, storage facilities, and specialized port infrastructure that facilitate the transportation of crude oil and natural gas. Without adequate midstream infrastructure, Namibia risks becoming an exporter of raw crude without capturing additional value through processing and distribution. A robust midstream sector can boost job creation, industrial development, and energy security, making it a strategic national priority.
Market studies from other African producers have shown that well-developed midstream infrastructure can contribute up to 30% more in local value addition compared to direct crude exports.[1] In Ghana, for instance, domestic refining and pipeline infrastructure contributed significantly to its GDP growth in the petroleum sector between 2016–2022. Namibia has the opportunity to tap into similar economic potential.[2]
Existing Legal Framework and Gaps
Namibia’s petroleum sector is primarily governed by the Petroleum (Exploration and Production) Act 2 of 1991 and the Petroleum Products and Energy Act 13 of 1990. These laws focus largely on upstream activities and the regulation of downstream petroleum products. However, there is no dedicated midstream regulatory framework. The absence of clear midstream regulations means there is little guidance on ownership structures, investment incentives, and operational guidelines for pipelines, storage, and refining facilities.
For example, Nigeria’s midstream sector prior to the Petroleum Industry Act (2021) faced significant bottlenecks due to the absence of a clear regulatory framework, particularly regarding third-party access and tariff setting for pipeline infrastructure. These issues led to investor reluctance and underinvestment, which were only addressed after the establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (Nigeria Petroleum Industry Act, 2021).
Lessons from Other Oil-Producing Countries
Namibia can draw inspiration from countries that have successfully developed midstream infrastructure through effective regulation. Norway, for example, has established a robust midstream legal framework that ensures state participation in pipelines and refineries while promoting private investment.[3] Ghana has a dedicated Petroleum Midstream Regulatory Authority that oversees infrastructure development and ensures compliance with environmental and safety standards. Similarly, Nigeria’s Petroleum Industry Act (2021) introduced the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which provides clear guidelines on pipeline ownership and operations.
The Role of Key Stakeholders in Strengthening Namibia’s Legal Framework
To unlock the full potential of the midstream sector, coordinated action is required among various stakeholders:
- Government Ministries and Regulators: Responsible for drafting legislation, setting environmental and safety standards, and issuing licenses.
- Private Sector and Investors: Bring in capital and technical expertise, while also needing legal certainty to invest confidently.
- State-Owned Entities: Can serve as infrastructure operators and strategic partners in public-private partnerships.
- Civil Society and Communities: Essential for ensuring environmental accountability and social license to operate.
- Legal Advisory Firms: Provide technical assistance in drafting laws, structuring transactions, and navigating policy reform.
Strengthening Namibia’s Midstream Legal Framework
To address the existing gaps, Namibia must develop a comprehensive legal framework that clearly defines the governance of midstream activities. A dedicated Midstream Act would be a crucial first step, providing legal certainty on pipeline infrastructure, refineries, storage, and transportation. Encouraging public-private partnerships can drive midstream development while ensuring local participation. Establishing an independent regulatory authority will help enhance transparency, streamline approvals, and enforce compliance.
Additionally, Namibia should implement policies that prioritize local employment and skills transfer, ensuring that midstream investors contribute to national workforce development. Environmental and safety standards must also be strengthened to mitigate risks associated with pipeline integrity, spill prevention, and emergency response. To further attract investors, tax breaks, duty exemptions, and streamlined licensing processes should be introduced to make Namibia a more competitive destination for midstream infrastructure development.
Conclusion
For Namibia to fully capitalize on its oil discoveries, it must establish a strong midstream legal framework that facilitates the efficient transportation, storage, and processing of petroleum resources. Without this, the country risks losing significant economic value and remaining dependent on crude exports.
By adopting best practices from other oil-producing nations and implementing strategic legal reforms, Namibia can create a thriving midstream sector that benefits both investors and citizens alike. CLG stands ready to support this transformation, leveraging its pan-African expertise in midstream regulation, infrastructure development, and legal advisory. Our team has been instrumental in shaping midstream legal regimes across West and Central Africa, and we are committed to helping Namibia build a regulatory foundation that supports sustainable growth and long-term prosperity.
[1] Ruben, R., Kuijpers, R., & Dijkxhoorn, Y. (2022). Mobilizing the Midstream for Supporting Smallholder Intensification. Land, 11(12), 2319. https://apo-opa.co/4ngI2bu
[2] Oxford Business Group. “Ghana's energy production targets and exploration attract investment”. Retrieved from https://apo-opa.co/4kUZQHu.
[3] Norwegian Petroleum Directorate (2021). 'Midstream Regulatory Framework and Investment Guidelines'.
Distributed by APO Group on behalf of CLG.
That's what I'm talking about, it's all about Somaliland development without international aid or help, you heard Somaliland companies and investors.
Our next goal is to improve basic services and social welfare of all Somaliland cities and citizens.
We need to convince China to develp ties with Somaliland, this is good beginning between the two nations.
the vowed of the chines is good somaliland to development many think that somaliland need but as we know Airport is one factor that improve the economic of any country .
somaliland airport will like heath row airport in shallah inn future
Well I hope that they make true of their promise, this most certainly is what Hargeisa needs and the road to the airport to be cleaned up and fixed.
The airport is no doubt a factor in improving a nation's economy and development as it will enable it to connect that nation to the international market and players.
This is positive development and Somalilanders need to get behind Minister Waran Adde.
Well done Mr Warran Adde and we also glade you took lazy and incombetent mayor Mr Hussein with you, its time Hargeisa elected new state government and councels.
I have been coming to this airport for the last 34 years that I was out of my country [Somaliland], and I have seen and experienced a lot since. I wish to see a descent Airport in Somaliland. I have traveled from Hargeisa a plane that does not have a proper seat, [seat without belt and hand rest] and on flight repair [can you imagine this] in the mid-air. I have seen so many things. I want to see an airport that links africa and the rest of the world, a gate to Africa and middle east and beyond. I hope Mr. Warancadde's visit brings a genuine project. This will wash the remarks he made recently about the Presidential Election that created outcry all over. Somaliland will stay forever, and the jealouses are bound go to hell.
I also suggest Somaliland should get proper parliament, I heard it's currently under construction but is that the House of Representative or the Gurtis?
We also need geniune national icon buildings that reflect on us, I suggest building a construction perhapes Ministiry of education with the design of Somali traditional houses (aqal miyi or badiye), same foundation same look just in a bigger scale with steel and glass.
This building is ok its nothing that can stand out I wish Mr Waran Adde requested a better design thats unique, nevertheless I salute the minister for his hard work.
If China says something they always deliver boys rest ashore it's the Han people. Chinese people never break a promise I know them.
Kudos to Engineers Mr. Mohamed and Mr. Hussein for a job well done! Remember Chine is responsible for developing water delivery system from Geed-Debleh to Hargeisa and the construction of the road from Hargeisa to Mogadishu. Chines will deliver. Those who question why the government was not able to fix roads and badmouth the mayor, please figure out how much does it cost to maintain peace in Somaliland and maintaining the integrity of our borders. Also imagine a time you are told you can’t travel to Somaliland because it has just become like Somalia, which is inferno!
Let us remember what Herbert B. Swope said “I cannot give you the formula for success, but I can give you the formula for failure: which is: Try to please everybody.”
it is great if our Airport will look like this but I am not sure if it is true, because our current government promised many times to do like this. but later on become camel melked with sand. Congratulation Warancade.
Go somaliland Go
Congratulations Minister WaranAde,,, All the nation and upcoming Generations will mention your success,,, keep moving ,,,, keep moving
Allhamdulilah Somaliland politicians made the right choice in this case.
Forget about the Westers, we need to work more with the Asians if we want to succeed. China is the Ultimate country which we have to collaborate with
I hope they get into more contaracts with the Chinese to build more roards like the one connecting Burao and Eirigavo, Ooodweyne and Hargeysa, fix the roads between Berbera and Togwajaale. Nice equipment we need it badly
Infrastructure = Development, finally they are getting it together in sync with the rest of Somalilander aspiration. We are proud of you ministers for doing your duties. This is drop in bucket, nonetheless, this is great step in the right direction. Just remember this is temporary solution….bringing in firms to build you stuff is not the way forward, doing it yourself by acquiring the skills is. Improve the education system and attract the best minds from the diaspora and work together to improve the nation.
Good job and well done.
This is the only Minister doing his job the rest are either chewing khat and reading this post or fighting over the $1 the British Embassy in Ethiopia donated. Shame on them!
If you do your job like Warran Adde Somaliland people would appreciate you.
Somaliland needs ties with Asian countries like China and the Chinese are well aware of the fact that a Taiwanese team has arrived in Somaliland last year and if the Chinese want more friends in Africa, they need to engage with nations like Somaliland.
First of all i'd like to say bravo to those who've made this possible. Somaliland should definately work more with developing nations such as China and India who can also prove great markets for our goods (if we ever get round to producing them). Another of the many steps in the right direction.
From the chinese well get business but not recognition. But that'll do for now. I reckon that to som extent being unrecognised has helped somaliland to develop its internal structures both governmental and economical. We should seize this oppertunity to support our home grown business to create employment and development.
The diaspora needs to invest in their country!!!
Hayaan in london, waxaan jeclaan lahaa inay in ay adkeeyaan balan qaadkooda Illaahayana waa la qabanayaa waxayna ila tahay Somaliland hadda waa gaadhay guul wax ku ool ah. Insha Allaah waxaan Illaahay ka rajaynayaa in ay wax kasta oo ka horynaadaba ay xaliyaan.(Aamiin).
This is beautiful news! Absolutely beautiful news!
Honestly its good that the airport is being upgraded, I know both the developmental and symbolic nature of such an upgrade. However, I only wish that the millions spent on the construction stayed in Somaliland. That is, I wish the job was contracted by Somaliland busniess, therefore creating even more jobs, keeping capital in the country that the business would re-invest in. That would be a better model for developement, than giving the money to a foreign company. That is the same thing that African countries did in their developmental stages in the 70's and 80's, which only led to capital leaving the country. This has led to in the past and will happen to Somaliland, which is that there is development of the local construction industry, there is less money to tax for the government and reinvest.
I hope they don't repeat this ridiculous again. For those of you who are quick to say that we don't have a company capable of upgrading the airport, there are other alternatives. Which would include perhaps hiring the chinese company to just oversee it, helping local construction companies acquire equipment by subsidizing their cost. That would be a viable solution to this in my opinion, if there was no company in somaliland willing to upgrade the airport, I'm sure there are some who would (builder of the ambassador hotel comes to mind).
Fix: the last sentence of the first paragraph should be:
This has led to in the past and will happen to Somaliland, which is that there is lack of development of the local industries (in this case the construction industry), this also decreases the amount of income in the country that the government would tax.
Thas a good but a productive step towards building Somaliland infrastracture, One of doing that is the Airport Upgrade for not only Visitors but also Tourist Polarization, we have in the home many International Agencies like UNDP,UNCHR,UNICEF, UNDP-Smack, WFP, we also have some NGOs who operate in different tasks like Halo Trust,ADRA etc. what we need to improve are the roads and the Airport which can reflect Somaliland Stability and Viable governerment… I really congratulate Mr. Warran Adde on that achievement.
This is absolutely beautiful news to hear now young men like can star investing in the country.
Layla
this is great news and i hope it will happen. but building Airport is not only our priorty as nation. we have so many social welfare issues in our country and we should not forgotten our health care and social care who are both in the bottom and we should put more into this. however, i am happy for us and at least we are trying our best.
The airport upgrading it's really step forward that our Somaliland Gaverment did and still i hope they are doing well progress to wards our goals.
I do always congratulate what ever steps forward our somaliland gaverment does,
I would like to Thank for allah and then the gaverment of somaliland and ofcourse Mr. Warran Adde's achievement.
The minister is only doing his job. I wish others were doing their jobs too. We need a leader who who does his/her job and expects the same from all the ministers and public servants.
This is good news, how can we find out who does ground handling of Ad-Hoc aircrafts in Somalia all over. Let us know handlerrelations@jeppesen.com
Excuse me it was the previous adminstration Riyaale who was supposed to build Hargeisa airport, over 6 years ago back in 2004. So what happen they chewed the money too lol. We need the intelligen service and other member of the puplic too monitor all spending and funding for somaliland gets to the starving and homes less people and they should be a basic welfare benifit food system so no one desvers to be hungary, and to over see if the government are doing the jobs like the avaition minister well done you should be reward by Somaliland.
cant stop crying this seems like a new begining 4 somaliland hopefully were gonna become independant and recognized and 1 day all those haters will still be in war and they will get so jealous
the government of Somaliland need to build nice airport have
1.beautiful building and hotel to relaxes and good communication with people or Somaliland student that coming his country and people who comet to help Somaliland programs
2.full security to know people who arrived and people now come Somaliland and checked how many time he leave or come to Hargeisa an were reside in Hargeisa
3.airport need of his student university to jobbed the airport like (ITC,business,……….)
As a hargeysaawi im so delighted to see the Egal airport improvement.But it worries me when I hear an engineer or engineers leading the design of such a structure. The same goes when i see a generic design copied from some magazine as the proposed design. I hope im wrong and there are an architect or architects involved on the design phase of the project. Please post the site plan and a floor plan so that professional can commit before the start of the construction. Please remember its cheaper to correct design or construction mistake while on paper compared while in construction.
Hope for all the best.
Mohamud A. Elmi-architect
Atlanta,ga
from waxaan aad ugu farseney airportka hr dhismihiisa cusub waxaanse war werka qabaa
dadka waddenka u dhashey oo aan ahey muwaadin sax ah oo qabiil iyo tuugnimo u dheertey
lisiniyo farsamo xumo qaad cunis kaliya yaqaan, dawo maloo hili karraa waxaad eegtaa suuqa hargeysa
xashiishka waddo xumo, dhirtii weycuneen cinna cama haddasho dhirtaa lagu noolyey aadmigu
this is very exciting news to hear from our politicians and if i am not wrong it is one of the first and best developments dat our government preparing to have.
thanks to our government for its endless effort to make our nation mile ahead.
The above image for the Hargeisa Airport was the previous design that Mr. Warancade assigned to built, but unfortunately the previous government that was lead Riyale was failed the presidentail election which held in 2010, when the current kulmiye administration took the power, the minister of civil aviation mis-used the allocated fund for the airport for personal interest, at present time the HGA AIRPORT yet has been undercontruction and it has new image which is bad looker then the above appeared image for the HGA AIPPORT.
i am so sorry, because every one we elected was lie to us, they are corrupters to the public money, there is no justice and there is no free judiciary, there is no free auditors, whole the country are thieves who are agreed to corrupts the public money any time and any where.
By: Dhabkahadal
London Gatwick
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I'm sure the results will be amazing! Great opportunity for development!
I think this country should have other priorities where spending money is concerned. I don’t think an airport makes the list.
artroplastie