Africa-Press – Namibia. THE northern Namibia region, which typically consumes an average of 180 to 200 million litres of fuel annually, has seen a significant decline in consumption over the past five years.
This was revealed by the Director of Energy Funds in the Ministry of Industries, Mines and Energy, Anna Libana.
According to Libana, this translates to an estimated 12.5 to 15 million litres per month.
She indicated that fuel volumes have plummeted by 30–40%, resulting in an estimated N$300 million in lost levies for the National Energy Fund (NEF) per year.
“Fuel smuggling from Angola into Namibia has evolved beyond a simple economic challenge. It now poses a serious threat to our fiscal stability, energy security, and even the safety of our law enforcement officers,” she said.
She added that this illicit trade is weakening the NEF’s ability to equalise fuel prices across the country, a crucial function for maintaining economic stability.
Beyond the financial implications, Libana said that this issue affects community livelihoods, border security, and bilateral relations with Angola.
“The economic fallout from this crisis is severe. It includes a significant loss of government revenue due to reduced fuel levy collections, with the NEF alone recording approximately N$300 million in losses,” she added.
She stressed that regulated fuel retailers, especially those in the northern regions of Ohangwena, Omusati, and Oshana, are negatively impacted by the unfair competition.
The primary driver of this smuggling activity is the stark price disparity between Angolan and Namibian fuel.
The broader economic ripple effects include reduced tax contributions, weakened competitiveness within the retail sector, and potential inflationary pressures on the economy as a whole.
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