KEY POINTS
- Namibia’s power security has strengthened after Eskom agreed firm supply contracts effective from April 2025, supported by improved plant performance in South Africa.
- Eskom reported higher profits, reduced load shedding and rising regional demand, though domestic sales weakened and non-technical losses remained high.
- NamPower continues expanding local capacity and renewable projects, but still imports up to 60 percent of its electricity, making Eskom’s stabilisation crucial in the near term.
Namibia’s electricity outlook has brightened following Eskom decision to conclude firm power-supply agreements with both Namibia and Botswana, arrangements scheduled to take effect from 1 April 2025.
The deals arrive at a moment when regional power flows are shifting, with drought across parts of Southern Africa cutting hydroelectric output and prompting neighbouring markets to lean more heavily on South Africa’s generation fleet.
Eskom’s interim results for the six months to 30 September 2025 show how its stabilising operations have begun to ripple across the wider region. Namibia, which has long supplemented domestic supply with imports, is among the countries drawing more consistently on South African power as Eskom’s plant performance improves and previously erratic stations are brought back into steadier service.
Consumption from Eswatini, Lesotho and Zambia also increased on a non-firm basis over the period, reflecting renewed confidence in Eskom’s ability to meet short-notice demand. Zimbabwe, however, saw its supply curtailed after persistent payment defaults.
The shift demonstrates how commercial discipline is being re-asserted in cross-border energy trade, even as the region navigates tighter supply conditions.
Improved Plant Reliability Fuels Regional Demand and Strengthens Eskom’s Finances
Eskom recorded only four days of load shedding during the reporting period and none since the middle of May, a milestone the utility credits to better station performance and the gradual return of previously constrained units.
That operational improvement fed into its financial results. Profit after tax climbed to N$24.3 billion from N$17.8 billion a year earlier, helped by a 12.74 percent tariff increase and a steadier flow of electricity through the system.
Revenue rose 4 percent to N$191.3 billion. Yet domestic sales volumes slipped by 3 percent as weak industrial activity and widespread adoption of rooftop solar reduced demand from local consumers.
The company also continued to grapple with illegal connections, meter tampering and chronic municipal arrears, with non-technical losses reaching an estimated N$17.5 billion.
The commissioning of Kusile Unit 6 and the return of Medupi Unit 4 played a central role in lifting investor sentiment, with credit-rating agencies noting that Eskom’s gradual recovery is lending weight to South Africa’s medium-term economic outlook.
The government projects GDP growth of about 1.8 percent, a figure analysts say is partly contingent on the utility maintaining operational gains.
Eskom maintains that reforms must continue if it is to sustain the improved performance and meet its obligations to countries such as Namibia under the new firm-supply arrangements.
Namibia’s own electricity planning underscores why the deal matters. NamPower’s 2024 annual report shows the country imports roughly 45 to 60 percent of its energy requirement through the Southern Africa Power Pool, using a trading system that balances domestic generation with regional supply.
The level of imports depends heavily on the performance of Namibia’s ageing plants and the timing of upgrades.
NamPower has been refurbishing existing stations and bringing private-sector renewable producers into the grid as part of a longer-term strategy to diversify its supply mix.
New solar, wind, biomass and battery-storage installations are steadily adding capacity and reducing import dependence, though the process remains gradual. Namibia registered a record peak demand of 672 MW/h on 4 June 2024, up from 633 MW/h the previous year, a rise of 6 percent that highlights the urgency of securing reliable external supply.
For now, Eskom’s recovery is easing pressure on Namibia’s electricity balance, offering a firmer buffer as the country builds out its mix of local and renewable sources.
