Capitalising on Namibia's oil and gas boom to ensure sustainability through inclusive growth
The oil and gas industry's greatest promise lies in job creation across the value chain.
Image: REUTERS/Abdiqani Hassan
Namibia is well positioned for significant growth and transformation.
With major oil and gas discoveries in the Orange Basin and a 40-well drilling campaign by Total, with a Final Investment Decision (FID) expected in 2026, the country has a unique opportunity to redefine its economic landscape.
To support long-term prosperity, however, it is essential that the right choices are made now. Logistics, construction, catering and other support services have already seen increased activity, and if this is managed wisely, it could have a widespread positive effect on GDP and employment.
This will require inclusive planning, policy reform and a commitment to skills development to ensure sustainable economic reform. Investing in skills to foster job creation
The oil and gas industry's greatest promise lies in job creation across the value chain.
Early momentum has focused on accessible, semi-skilled roles such as entry-level workers and support staff.
These jobs are essential, but for long-term sustainability it is vital to also invest in higher-skilled roles such as engineers, drilling managers, and project leaders, and to ensure robust skills transfer takes place.
While internships, technical training, and engineering placements are already underway, these must be scaled.
Inclusive development means ensuring that opportunities reach all Namibians. The roadshows being conducted by companies like TotalEnergies and Namcor are a step in the right direction.
Engaging communities across the regions not only fosters transparency, it ensures local needs are reflected in national strategies. Learning from history to avoid pitfalls
The potential for growth as a result of these significant oil and gas discoveries is massive, but history demonstrates that there is a risk of becoming over-reliant.
Namibia must learn from the experiences of countries like Nigeria, where weak regulatory oversight led to environmental degradation and lost public trust.
Angola also provides a lesson on the dangers of centralised control and the need for local content development.
On the positive side, Norway provides a model of how to manage wealth transparently, invest in the future and ensure that the benefits of natural resources are widely shared.
There are also environmental risks inherent in the oil and gas sector including carbon emissions and the far-reaching effects of oil spills on marine wildlife.
Namibia cannot afford to treat sustainability as a tick-box exercise. Robust monitoring, strict operator accountability, and full environmental integration at every stage of development will be key.
The solution lies in building strong, transparent institutions.
Regulatory frameworks must balance the need for investment with environmental protection and social impact.
They must enforce local employment quotas, set clear environmental standards, and ensure oil revenues are reinvested in long-term development.
A springboard for economic transformation
The world is increasingly focused on the transition away from fossil fuels, so there is a finite window of opportunity for Namibia to take advantage of oil and gas resources.
Investment in human capital and infrastructure must be a priority, and skilled artisans like welders, electricians and riggers need to be upskilled and certified to meet industry standards.
Ports must be expanded, and housing shortages in Namibia need urgent attention. In addition, power infrastructure must keep pace with industrial demand.
Sustainable economic growth requires revenues to be channelled into infrastructure, healthcare, education, and most importantly, economic diversification.
This is already in progress, with renewable energy projects, including green hydrogen initiatives, underway and more in the pipeline.
Tourism, agriculture and manufacturing are also seeing renewed interest.
These sectors must be nurtured as the demand for fossil fuels falls away in future generations.
Learning from history and investing strategically will serve not only the oil and gas sector, but the broader economy.
With the right regulations in place, as well as inclusive policies, and investments aimed at developing a resilient, diversified economy, Namibia can build an industry that doesn't just create wealth, it uplifts the nation.
Julien Karambua, Country Manager at Workforce Staffing Namibia.
Julien Karambua, Country Manager at Workforce Staffing Namibia
Image: Supplied.
BUSINESS REPORT
Visit: www.businessreport.co.za
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
34 minutes ago
- TimesLIVE
China's rare-earth clampdown could stall carmaker output
Global auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China — used in everything from windshield-wiper motors to anti-lock braking sensors — that could, in a worst-case scenario, force the closure of car factories within weeks. In a previously unreported May 9 letter to officials in the administration of US President Donald Trump, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major carmakers raised urgent concerns. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,' the Alliance for Automotive Innovation wrote. The letter, which also was signed by the Motors & Equipment Association (Mema), , added that, without those essential automotive components, it would only be a matter of time before US vehicle factories are disrupted. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines,' the groups said. Both Alliance CEO John Bozzella and Mema CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to US car production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury secretary Scott Bessent and US trade representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to US companies but was not moving fast enough to grant access for key US industries. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing.' China — which controls more than 90% of global processing capacity for the magnets used in everything from cars and fighter jets to home appliances — imposed restrictions in early April, requiring exporters to obtain licences from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes requires hundreds of pages of documents. In a social media post Friday, Trump accused China of violating the terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the US that was abusing export controls in the semiconductor sector. A US official with knowledge of the talks told Reuters that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that US export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licences, which could kick-start export control retaliation by Washington if carmakers vulnerable to shortages of the minerals are forced to halt production. While a handful of licences have been granted, including to some Volkswagen suppliers, Indian carmakers say they still have received none and will have to stop production in early June. German car parts maker Bosch said this week that its suppliers have been bogged down by China's more rigorous procedures to receive export licences. A Bosch spokesperson described the process as 'complex and time-consuming, partly due to the need to collect and provide a lot of information'.
TimesLIVE
3 days ago
- TimesLIVE
Afreximbank tells investors Ghana up to date on loans, risking creditors' ire
Afreximbank has signalled that Ghana has kept up loan repayments to it, two sources told Reuters, potentially setting Accra on a collision course with its other lenders that have already agreed to take losses to help the country recover from default. The African lender, the sources said, told investors on a May 15 call that Ghana and Malawi — which is also undergoing a debt restructuring — were "up to date" with their loan facilities, suggesting neither country had run up arrears. While Ghana's restructuring of $13bn (R232.29bn) worth of international bonds and debts to official creditors concluded last year, it must also restructure its commercial debt before it can fully emerge from default. Afreximbank says it is a multilateral institution which, like the IMF and the World Bank, is exempt from taking losses when countries default. But sources told Reuters last month that the Paris Club group of official lenders has made it clear that Ghana, and also Zambia which similarly agreed a deal with its primary creditors last year, must restructure their debts to Afreximbank and the Eastern and Southern African Trade and Development Bank (TDB). In a letter seen by Reuters from Ghana's finance ministry to Afreximbank, dated May 21, the government requested the bank to begin debt treatment discussions.
IOL News
3 days ago
- IOL News
Shell acquires TotalEnergies stake in Nigeria oil field
TotalEnergies is giving up its 12.5 percent stake in the Bonga field, increasing Shell's own share to 67.5 percent, the companies said in separate statements. France's TotalEnergies said Thursday it would sell its stake in a major offshore oil field in Nigeria to UK energy giant Shell for $510 million. TotalEnergies is giving up its 12.5 percent stake in the Bonga field, increasing Shell's own share to 67.5 percent, the companies said in separate statements. The French firm is withdrawing from a production-sharing agreement that the Nigerian state signed in 2021 with TotalEnergies, Shell, US oil major ExxonMobil and Italy's Eni following two years of tough negotiations.
