Interview: Erastus Cautions Against Rushed Nationalisation, Urges Strategic Preparation

Economist Gabriel Erastus has urged lawmakers to proceed with caution on proposals to nationalise Namibia’s strategic sectors, warning that such decisions must be guided by strategy, skills, and solid research.

Speaking in response to a recent proposal by National Assembly member Mr. Kaaronda on the nationalisation of key sectors and resources, Erastus acknowledged that the call “comes from a good place” — especially in light of limited national benefits derived from the current model of licensing private entities to exploit resources.

However, Erastus stressed that nationalisation cannot be driven by sentiment or frustration alone. “You can’t just come up with an idea to nationalise. It has to be a strategy — one that is backed by resources, expertise, and a deep understanding of market dynamics,” he said.

Taking the green hydrogen sector as an example, Erastus argued that Namibia lacks both the scientific knowledge and industrial infrastructure to control such a complex commodity. “We don’t even understand the scientific processes involved, nor do we have the market to absorb or utilise green hydrogen locally,” he said.

He added that before nationalising any resource, government must first invest in building skills, conducting research, and identifying reliable markets for value addition. “We must assess each commodity individually, identify the gaps, and build capacity before the state can sustainably take ownership or lead in production,” he explained.

Erastus also highlighted that nationalisation does not mean the exclusion of the private sector, but rather that government takes an active role in ownership and decision-making. He pointed to the water sector as an example of a partially nationalised area where the state plays a lead role in production and distribution. “We’ve nationalised water — but we still borrow to fund its distribution,” he said, suggesting that even in nationalised sectors, self-sufficiency remains a challenge.

On whether the same approach can be applied to diamonds or other high-value sectors, Erastus remained cautious. “We need to ask — do we have the capital and expertise to mine diamonds ourselves? Look at what De Beers invests just to operate a single vessel. These are big questions we must answer first,” he warned.

While reiterating that nationalisation is “not a bad idea,” Erastus insisted that it must be applied selectively — only where government has capacity, capital, and market control. “Otherwise, we really, really have to chill,” he said, urging the nation to focus on skills development, capital mobilisation, and proper feasibility studies before jumping into resource ownership.

In conclusion, Erastus said that nationalisation can only succeed if Namibia first builds the internal capacity to manage its resources. “Where do we sell? Are we adding value? Only once we answer these questions can we decide if nationalisation is the right path,” he said.