Hyphen warns rushed localisation could jeopardise N$54 billion opportunity

By: Hertha Ekandjo

Hyphen Hydrogen Energy’s Head of Environmental, Social, and Governance, Toni Beukes, has cautioned that Namibia risks missing out on a multi-billion-dollar green hydrogen opportunity if there are no deliberate and practical interventions in place to support local industry participation.

Her remarks come as Hyphen plans to channel approximately N$54 billion into Namibian businesses through its green hydrogen project, representing 30% of the estimated US$10 billion investment value.

The commitment positions the initiative as one of the largest planned injections of capital into Namibia’s local private sector, aimed at boosting local procurement and enterprise participation.

Speaking at the recent N$11.5 million cooperation agreement signing between Hyphen and GIZ, Beukes emphasised that the focus is on developing a long-term ecosystem that goes beyond immediate project needs.

The agreement, aimed at boosting local participation in the green hydrogen sector, has been described as not merely symbolic, but a critical and practical step marking the beginning of implementation, with programme activities already set to commence.

“The message is clear. Without this intervention, the opportunity for N$50 billion will simply not be realised. So it’s about designing a programme that is context-specific and realistic in terms of its achievement,” she said.

Beukes stressed the importance of adopting a realistic and phased approach to localisation, warning against rushing the process. She noted that while there is pressure to fast-track local participation, doing so without proper planning could result in unintended consequences and hinder the sustainable development of local industries.

“When we talk about localisation and localisation strategy, we have to be realistic about what’s implementable in the short, medium and long term, and avoid the pitfalls of what countries like South Africa have tried to do,” she said.

“Because of the deep structural inequalities and challenges that we sit with, there is a tendency to want to jump the gun and localise too quickly. And then we have unintended consequences that result in us not being able to build industries sustainably,” Beukes added.

She further noted that the initiative, supported in partnership with GIZ, will also facilitate international exposure for Namibian businesses. This includes a planned delegation to Germany aimed at building relationships and creating market access opportunities for local enterprises.

The programme forms part of broader efforts to strengthen enterprise and supplier development, ensuring that Namibian businesses are better positioned to participate competitively in the country’s growing green hydrogen value chain.