European Union Lists Namibia as High-Risk Jurisdiction; Namibia Urged to Develop Nuclear Energy to Enhance Energy Security

Strategic Insights -

The European Union (EU) has included Namibia in its list of high-risk jurisdictions due to strategic deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. This decision is a direct consequence of the Financial Action Task Force's (FATF) deliberations at its February 2024 Plenary Meeting, resulting in Namibia's inclusion on the FATF grey list. The EU is legally bound to consider listing any FATF-listed country. In response, the EU has offered technical assistance and expert exchanges with Namibian authorities to support the implementation of the FATF action plan.

The inclusion on the high-risk list will necessitate banks and financial institutions in the EU27 to apply enhanced due diligence measures when conducting financial transactions involving Namibia. However, the EU emphasizes that this listing does not amount to sanctions or prevent Namibia from accessing EU trade, investment, or cooperation funding.

Meanwhile, a Namibian energy engineer, Setson Shifidi, has urged the country to capitalize on its abundant uranium resources by developing nuclear power to meet future energy needs, reduce carbon emissions, and enhance energy security. Shifidi stresses that delaying the process could lead to missed opportunities for economic growth, technological advancement, and national energy independence. He highlights the benefits of nuclear energy, including its stable and continuous power supply, flexibility, and cost-effectiveness, particularly with the adoption of small modular nuclear reactors.

Key Takeaways:

  • The European Union has listed Namibia as a high-risk jurisdiction due to strategic deficiencies in its AML/CFT framework, resulting from the FATF's February 2024 Plenary Meeting.
  • The EU's decision is subject to scrutiny by the European parliament and European Council of Ministers within the coming month, and will enter into force 20 days after publication in the EU Official Journal.
  • In response, the EU has offered technical assistance and expert exchanges with Namibian authorities to support the implementation of the FATF action plan.
  • Namibia's energy engineer, Setson Shifidi, emphasizes the need to develop nuclear power to meet future energy needs, reduce carbon emissions, and enhance energy security.
  • Shifidi highlights the benefits of nuclear energy, including its stable and continuous power supply, flexibility, and cost-effectiveness.
  • The International Atomic Energy Agency (IAEA) notes that an accelerated process for developing nuclear power can take up to ten years, involving policy development, regulatory preparation, construction, and commissioning.
  • Small modular nuclear reactors are a flexible and cost-effective option for Namibia, given their compact design and rapid deployment.
  • Nuclear energy offers a stable and continuous power supply that complements renewables, reduces reliance on imports, and supports energy independence.
  • Namibia has the opportunity to develop a domestic nuclear program that can stimulate economic growth and job creation.
  • A diversified energy mix that includes renewables, nuclear power, and hydropower is essential for Namibia's future energy security.
  • The Lazard's 2025 Levelized Cost of Energy (LCOE) analysis indicates that nuclear reactors are economically competitive, with an estimated cost of N$1.60 to N$2.30 per kilowatt-hour.

Statistics:

  • Namibia imports more than half of its electricity, despite having abundant solar and wind resources.
  • Nuclear power contributes approximately 9% of total electricity generation globally.
  • In Africa, nuclear energy accounts for less than 2% of the continent's electricity generation.
  • France generates nearly 65% of its electricity from nuclear energy, the highest national share in the world.
  • The United States leads in nuclear power production, with over 779 000 GWh annually.
  • The Lazard's 2025 LCOE analysis indicates that nuclear reactors are economically competitive, with an estimated cost of N$1.60 to N$2.30 per kilowatt-hour.

Sources:

  • European Union media statement
  • FATF's February 2024 Plenary Meeting
  • Setson Shifidi's opinion piece
  • International Atomic Energy Agency (IAEA) statement
  • Lazard's 2025 Levelized Cost of Energy (LCOE) analysis
  • New Era interview with Nortin Titus