The Namibia Investment Promotion and Development Board (NIPDB) says the recent oil discoveries and project interventions in the gas and renewable sectors have the potential to address the country’s social ills of poverty, unemployment and energy deficiency.
NIPDB’s Chairperson and Chief Executive Officer Nangula Uaandja said the sectors could turn the country’s fortunes if pursued successfully.
“In Namibia we are fighting poverty, inequality and unemployment. Hence if we are having people in the world who are interested in our resources and willing to invest, and support the government to bring an end to these challenges, certainly, as a country we need to explore and leverage from that,” Uaandja said on Tuesday.
Uaandja acknowledged that it will take time for oil to be extracted and for production to begin, as the government does not have the power to dictate and set timeframes, therefore emphasising the need to interrogate the industry.
“It is only through these engagements that we can figure out how to maximise the benefit of Namibia from oil, and also getting the best out of the value chain processes in both upstream and downstream, instead of extracting oil and export without benefiting,” said Uaandja.
She urged Micro, Small and Medium Enterprises (MSMEs) to partake in the engagements highlighting that it is only through these discussions that one can know what roles to play in the industry, and for authorities to hear how they can be assisted to fully partake.
“There are so many questions, and views, for instance, some are calling for the government to fully own the oil, while some quarters are demanding for increasing shareholding and taxes, thus, it is only through these platforms that we can get solutions,” she stated.
Namibia has in recent years earned itself a spot in the energy sector following the discovery of four oil wells offshore Namibia’s Orange Basin believed to contain billions of hydrocarbons.
These had been made possible by collaborations of giant companies Qatar Energy, TotalEnergies and NAMCOR who have been involved in extensive explorations.
Currently, the companies are busy with the appraisal stages to determine the commercial viability of oil.
Oil is expected to become a game-changer for the Namibian economy, with NAMCOR forecasting that the country’s newly discovered oil reserves could grow the country’s gross domestic product (GDP) from the current US$12.3 billion to U$37 billion at peak production levels.
According to government estimates, Shell and TotalEnergies’ discoveries have the potential to generate annual taxes and royalties ranging from N$60 billion to N$95 billion, with the ability to create 3,600 jobs at the peak of production.
