By Eng. Kledura Imalwa
It is a platitude that Africa is the source of life for the entire globe, from its vast terrains to underground resources. The scramble for these resources by the so-called first-world countries has caused a plethora of social ills, issues that require urgent scrutiny and verdicts for subsequent restitutions from our collective watch-guard leadership.
As oil and gas operations expand across Africa, it becomes vital to address the social challenges faced by communities near drilling sites. Many locales grapple with environmental degradation, socio-economic inequalities, and many other tribulations brought about in African oil-producing realms.
Learning from others:
Namibia is earmarked to be the final exploration frontier, and with the recent huge oil and gas discoveries, it has become a hot-spot for many investors looking for business opportunities. “What are the low hanging fruits?” is the whisper you hear at these conferences. Namibia’s discoveries are being discussed all over the world at energy conferences, “the new kid on the block.”
Locally, we are also seeing a rise in conferences and summits being held in different regions across the country; universities are introducing new courses and programs for oil and gas; oil laws and policies are in draft; and there have been frequent community engagements where experts have been invited to speak. The country has also sent representatives/delegations to visit oil-producing countries to learn best practices and do case scenario studies from the oil giants.
Many have been very vocal about local content where business and employment are concerned. This is great, but we are not hearing so much about the social ills that are faced by these oil-producing nations, how communities near these activities have been impacted severely, how these nations have dealt with these issues, and what lessons can we draw from the experiences of others so that as a nation we don’t experience the same pitfalls.
Programs should be put in place to ensure that Namibians do not end up in similar living conditions or even worse, especially those in towns where discoveries/exploration activities are taking place (Kavango, Lüderitz, and Walvis Bay).
Can we say Namibia is very fortunate to have practical examples to learn from? Will we do better in comparison with many other oil-producing nations, especially those on the continent? Do we have a framework tailored for us? Will it work for us considering the current geo-political state of affairs?
Let us look at practical examples on the continent.
Port Harcourt Nigeria, despite the state’s oil resources, is still experiencing serious socio-economic issues, including high unemployment, land insecurity, housing problems, and mass poverty owing to what has now become known as the “national resource curse”.
Another example is Sekondi-Takoradi, a twin city in Ghana. Black gold was discovered off its shores in 2007, and by the year 2010, oil in commercial quantities was flowing in the city. Since 2011, oil has been leaving its shores in pursuit of international currency, but nothing socially positive has really come off it; no real positive impact can be felt by the citizens.
Let us look at our neighbor. Angola is a vast country with a relatively small population and abundant natural resources in addition to oil, notable for its high production value and the significant volume of its reserves. But the country also stands out in respect of the uneven distribution of wealth and political corruption, which have enabled the enrichment of a small elite to power, while most of the population remains below the poverty line.
Another important issue is the significant environmental impact of the oil industry. Despite its resources, Angola continues to suffer environmental degradation, a high incidence of infectious and parasitic diseases, a short life expectancy, and a weak regulatory framework for environmental protection to deal with the aftermath of the oil industry.
Back to the motherland, there has been a lot of advice and input for the Oil and Gas policy draft, with special emphasis on local inclusion, which will be well and good if meticulously implemented and monitored for compliance. As we are learning from those in the know, let us also look at the social harms encountered by these nations, especially in the oil-producing metropolis. Let us analyze the social impacts that are already being felt by locals in areas of these discoveries.
The cost of living has gone up, land has been bought up, housing and rent have gone up – these are already indications of how life is going to be so difficult for an average Namibian. The oil resource is our own and should be here to benefit us.
By setting a precedent, let us embrace and set a trend and record of good practice from the onset. Other African countries have faced similar issues, highlighting the need for robust regulations and transparent governance to ensure sustainable development. Many a time we are constantly being reminded that the going green movement will make the oil resource obsolete, yet they still need to own a lion’s share in the extraction of the resources, which reminds us that something is aloof.
Understanding the root causes of inadequate regulation, poor governance of oil revenues, and insufficient community engagement, will contribute to the alleviation of these challenges. It must be understood that the resource belongs to the continent and its citizens, and the share structures must at most benefit the country’s nationals who have an incontrovertible right to them. Many a time we have seen Africans being exploited and undercut in terms of share percentages of these resources, and this has led to escalated poverty and wealth disparity, let alone to social unrest. Africans continue to suffer under the hands of these so-called FDIs.
I concur with the Vice President and Presidential candidate, Netumbo Nandi Ndaitwah, on her nobble move to reassure Namibians that mineral resources belong to Namibians; laws and regulations must be finalized like yesterday for these resources to benefit citizens; growth in GDP, taxes, and royalties alone will not automatically result in inclusive growth; we need to be pragmatic. Economic growth driven by oil must be matched with efforts to ensure fair distribution and sustainable development.
Charting a Path Forward:
Let’s prioritize responsible practices—protecting our environment, empowering communities, and ensuring equitable benefits from oil revenues. We have seen at some point BP getting the environment into trouble due to negligence. Hefty punishment should be implemented to send a strong message out there to the would-be perpetrators that should they expose our environments to such, there will be heavy consequences to bear.
Empowering Communities:
Engage communities in decision-making and invest in their education, healthcare, and infrastructure needs for sustainable development. The oil and gas industry remain a multi-trillion-dollar industry that should owes sustainable partnership with surrounding communities. We have seen that this is doable, taking examples and case studies of Libya under Gen. Gadhafi’s regime. The General has proven that every Libyan could live a decent life.
Call to Action:
Together, let us advocate for responsible oil and gas production practices that benefit both industry and society. Join us in building a brighter future for Africa! The sub-Saharan region is faced with a serious drought this season and as usual, is looking up to aid from first-world countries, which dependency syndrome, by now should have been a thing of the past, but… alas, we still find ourselves languishing in poverty yet so rich. This widespread discovery, if managed well, can sustain Africa in all other social aspects.
Let me expand on NJ Ayuk’s words as a Namibian protege: “Drill baby, drill, drill for the prosperity of the African people!!!!!”
* Eng. Kledura Imalwa is a qualified Exploration Engineer in Oil &Gas and Mining and holds an MBA in International Business. Find her on Linked in -Kledura Imalwa.
