This paper elaborates on the potentials and risks of bioenergy production in Namibia and the
institutions and policies shaping them. Existing and emerging value chains based on the conversion of Jatropha
curcas into straight vegetable oil and biodiesel and of woody shrubs (bush) into charcoal, pellets, and woodgas
are analysed in terms of their viability and impacts on rural development and food security. We argue that
bioenergy value chains can have large positive impacts, but these depend on the specific value chain
configuration and institutional and policy environment. Extremely high expectations, unclear land rights,
delegated negotiation power, communication infrastructure, long procedures and government anxieties can
combine to a politically and socially explosive mix. Even the successful establishment of such large projects will
create certain problems, since not all parties will benefit in equal terms, not all politically influential persons will
be satisfied, and other effects are difficult to manage. The paper identifies gaps in the institutional and policy
framework and proposes solutions for improvement around the policy areas of food security, agriculture,
labour, land, output markets and value chain coordination.