Prime Minister Saara Kuugongelwa-Amadhila has moved to address Namibia’s energy mix conundrum which is Namibia’s ambitions to explore both oil & gas on one hand, and renewable energy on the other hand.
Namibia’s energy mix has received criticism in the recent past prompting Kuugongelwa-Amadhila to provide some clarity.
“We can all agree that some developed economies got to where they are by exploiting fossil fuels to become industrialised. Namibia’s economy is yet to become industrialised and needs to utilise all its resources to do so. Although low-carbon industrialisation is the goal, African countries agree that it is a costly one. In order to be a part of the global energy transition, Namibia needs to exploit all its resources to generate the revenues required to transition into a low-carbon industrialised economy,” Kuugongelwa-Amadhila explained.
Speaking about the oil and gas sector, she stated that from the moment Namibia’s oil discoveries made global headlines, government has been inundated with congratulatory messages on one hand, and warnings about the curse of oil on the other.
This is has also been because in some countries, where the discovery of oil was meant to be the catalyst for economic development or expansion, the opposite became the reality instead.
“In anticipation of the opportunities and economic impact presented by being an oil producing country, we must remain cognisant of responsibilities that come along with these opportunities. Primarily, we have a duty to ensure that the development of this sector brings equitable economic development, that it is done in a transparent manner – void of corruption and other unethical practices, and that our pristine environment is not compromised at any stage whether by exploratory or extractive activities.
“Namibia is the first country in Africa to include environmental protection in her constitution. As such, one of our primary objectives is to ensure that all activities are carried out in an environmentally sound manner to protect livelihood, health and safety of communities and wildlife living in close proximity to these sites,” Kuugongelwa-Amadhila said.
She went on to state that it the intention of government to implement governance structures that are responsive, progressive and fit for purpose. To achieve this, Kuugongelwa-Amadhila says, government is crafting robust legislation and policies, inclusive of a progressing tax regime and local content policy that maximise revenues to treasury, while providing clarity, transparency, and fairness to all stakeholders.
Through collaboration with industry experts, academics, and international partners, government is working to establish an environment that attracts investment, stimulates technological advancements, and safeguards the interests of our citizens.
“In creating a conducive business environment, it is our enduring objective to create shared value for both Namibia and our investors, and this is evident in the relevant laws and regulations that guarantee investor protection. On the other hand, as a Government we have a primary responsibility to maximise benefits from these resources and ensure that Namibians are given a fair opportunity to participate in this emerging industry in a meaningful way. This strategic intention is clearly outlined in the local content policy spearheaded by the Ministry of Mines and Energy.
I would like to emphasise that the development of the oil and gas industry should not be carried out at the expense of the other equally important sectors of our economy. Such a time calls for deliberate strategies to diversify our economy and increase revenue streams. We are cognisant that we are still in the exploration and appraisal stage of the process, but remain cautiously optimistic of the outcomes, as there is still a high probability that our ambitions may be further than expected,” she said adding that government is however committed to an approach that places socio-economic development and environmental stewardship at the heart of efforts.
“The decisions we make today will reverberate for generations to come. One of the interventions we are considering is the creation of a sovereign fund to ensure that future generations also reap the same benefits from our natural resources. Therefore, as we venture into this new frontier, we are committed to learning from the successes and challenges of those that came before us and adopting the highest international standards, mitigating environmental risks, and embracing innovation to minimise our ecological footprint.”