Exploration drilling for oil in the KAZA area in Namibia

German development cooperation (FC) supports the KAZA Transfrontier Conservation Area as well as other state and municipal protected areas in Namibia as part of bilateral and regional development cooperation activities on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ).

According to our knowledge, the company ReconAfrica has been granted fundamental exploration licences for three areas (two in north-east Namibia and one in north-west Botswana). The areas in Namibia are located on the edge of the KAZA Transfrontier Conservation Area, 60–100 km from the Okavango River.

According to the Namibian Ministry of Environment, the necessary environmental impact assessments were undertaken for the exploration wells and seismological studies implemented so far, and it was on this basis that the “clearance certificate” was issued. The results of the environmental impact assessments, their interpretation and implementation are critically accompanied and subject to controversial discussions among the Namibian public, civil society and experts.

Two further test wells are to be drilled by the end of 2024 (start: June 2024; duration of the first well: around 90 days).

There is currently no approval for "fracking" (neither in the context of the test drilling nor for possible future extraction). Statements to the contrary on the part of ReconAfrica are misleading or misunderstandable.

Based on existing experience, 95% of exploration licences are unsuccessful. Even Namibian geologists, who are well acquainted with the conditions in the exploration areas, are very sceptical about the company’s chances of success. If, however, the boreholes and seismological studies indicate that oil and gas deposits are present, and if they occur in sufficient quantities for extraction to be worthwhile, a new process would have to be initiated with further approval processes and additional environmental impact assessments. Yet it is still not at all certain whether oil or gas can be found in the region in quantities worthy of extraction.

KfW and other German development cooperation institutions are in discussion with the Namibian Ministry of Environment and other Namibian environmental organisations (e.g. World Wildlife Fund (WWF), Namibia Chamber of Environment (NCE), Namibia Nature Foundation (NNF), Namibian Association of Community-Based Natural Resource Management Support Organisations (NACSO)) and exchange views with them regularly on the possible environmental and social impacts of the planned oil drilling. The issue is also being addressed in talks between the German Federal Government and the Namibian government.

Due to the high status of nature conservation in the Namibian constitution, the great relevance of nature-based tourism and the good environmental legislation, we currently assume that the Namibian government and the Namibian public and professionals will follow the developments very closely and ensure that the exploration investigations in the Kavango region will be carried out in compliance with and in consideration of all applicable laws and regulations. This includes, in particular, careful consideration of all economic, environmental and social aspects. The critical Namibian environmental organisations have led intensive discussions with the Namibian government and ReconAfrica in this regard.

As a result of the discussions around ReconAfrica's activities, the issue of utilising the country's natural resources in harmony with the protection of natural resources and livelihoods has become increasingly important. As a result, the issue of mining and other licences for economic activities in natural areas and protected areas has once again taken on special significance in the upcoming comprehensive revision of the Wildlife and Protected Areas Management Bill. Among other things, the bill is intended to define the conditions under which prospecting and mining can be carried out in protected areas.

As things stand, we do not see the measures of German development cooperation in the field of environmental protection and natural resources in Namibia and the KAZA region endangered by the exploratory drilling. However, we will continue to follow the situation in close coordination with the Namibian institutions. If necessary, and within the framework of our mandate as the German Federal Government's implementing organisation we will take further action with regard to the design and the process of our financial contributions to KAZA. However, we also wish to point out that KfW has no direct influence on the granting of licences or state permits by the national authorities.