Oshikango, located on the Namibia-Angola border and now part of the town of Helao Nafidi, was desolate when Namibia gained its independence in March 1990.
There were two or three shebeens; a number of abandoned buildings riddled with bullet holes; a water tower that also served as a military outpost of the SADF/SWATF, and a few scattered traditional homesteads in the surrounding area.
But today, Oshikango is one of the biggest businesses hubs in the northern regions, having attracted local and foreign investors.
It is home to an Economic Processing Zone and a number of foreign-owned companies, contributing significantly to the local economy.
However, amidst this impressive growth story, Oshikango has become a breeding ground for traders dealing in illicit goods illegally imported from Angola. This includes a pervasive issue of fuel smuggling along the Namibia-Angola border, which is severely impacting local filling stations, causing them to lose customers at an alarming rate.
The consequences of this
illicit trade have been dire, with two service stations forced out of business in recent years.
One of them, a service station in Oshikango, closed years ago, while the other in Omafo closed down more recently. The closure of these service stations has had a profound effect on the community and the local economy.
Nampa spoke to various individuals affected by these closures who pointed to the ongoing fuel smuggling problem in Helao Nafidi as the root cause. Many vehicles also bypass the local service stations, instead opting to queue up in Angola for fuel.
When this news agency visited the town last month, police vehicles were visible on the ground conducting routine operations, while a group of men lined up on the other side of the border, waiting for the situation to calm down. As the second patrol concluded, they hurriedly approached vehicles waiting for refuelling, each person fending for themselves in their attempt to find a buyer.
Fuel sellers lamented the challenges they face during police operatio
ns, particularly during peak hours.
‘We have to wait for the situation to calm down because if we are caught, we either face prosecution or our containers are confiscated,’ one said.
He said he sells petrol for N.dollars 60 per five litres or N.dollars 350 per 25 litres; while diesel costs N.dollars 250 for 25 litres. However, the prices of containers can fluctuate, depending on economic conditions in Angola.
Helao Nafidi Mayor Darius Shaalukeni meanwhile expressed his concerns about the impact of the closure of service stations, noting that the situation often leaves the remaining operating service stations without fuel, which is disheartening for visitors and detrimental to the town’s revenue generation.
He however also pointed out that, by law, the council does not have the authority to address fuel smuggling activities directly, relying solely on the police and other stakeholders for enforcement.
‘With the absence of a mandate, there is limited action we can take as a council, despite the unsatisfact
ory situation on the ground,’ Shaalukeni said.
Minister of Mines and Energy Tom Alweendo recently acknowledged the challenges posed by the extensive Namibia-Angola border, making it difficult to combat illegal fuel smuggling effectively.
He stressed that a key solution lies in bridging the price differential between fuel in Namibia and Angola.
Alweendo said a possible solution would be to end the price differentiation between Namibia and Angola.
He said while fuel in Angola is not necessarily cheaper, the Angolan government subsidises the difference between the purchase price and the selling price.
‘As long as that remains in place, it will be a problem for Namibia,’ he said.
Alweendo emphasised that the continuation of this trend could have severe economic implications as when people engage in illegal fuel importation, they divert revenue away from crucial road maintenance funds, impacting infrastructure development and the overall well-being of the country.
Source: Namibia Press Agency