By Dr. John Steytler
Namibia appears to have a little swagger, or you could say a bounce in its step. It’s possible that this is the case now that winter is over, but I think there’s another reason, and as an economist first and foremost, I like this one. It is the “buzz” generated by the recent oil exploration and finds made in and near the Namibian coast. As a bonus, Green Hydrogen might develop into a significant source of power and income for our sparsely populated country.
It is understandable why we feel assured. especially in light of the financial crisis that the pandemic both locally and globally caused. This still has an impact now, every day. The oil finds, which could contain billions of barrels of oil, have the potential to completely change our country. Due to the high level of interest in our ability to produce green hydrogen, Europe and other regions of the world have made commitments and have the potential to invest billions of euros. This does not imply that within the next one to two years, we will change into a fully-fledged oil and gas economy, with skyscrapers springing up and poverty being abolished. A coordinated and targeted development strategy is required.
In fact, our National Development Plans and Harambee Prosperity Plan will serve as Namibia’s climb to and development into the regional powerhouse that it may be. We frequently observe the changes occurring in Singapore, Qatar, or Dubai. The oil-rich countries of Dubai and Qatar went from being desert states to thriving global economic powerhouses in just a few short decades. In the case of Singapore, the Ministry and its agencies transformed the city-state in just six decades, transforming it from squatters in slums to proud owners in contemporary housing estates; from modest shophouses to lofty skyscrapers; and from filthy, dusty streets to lush gardens and internationally renowned skylines. To achieve these economic breakthroughs, every citizen and a “can-do” mindset were required.
Namibia undoubtedly does that while nation-building, but it always tempers its dreams with a fair dose of pragmatism. Our NDPs and HPP demonstrate that we have a development strategy that is successful and advancing the country. Since gaining independence more than 30 years ago, Namibia has been moving toward development, but we are aware that there is still more to be done. This is where the money made from oil and gas may be very helpful, but only if it is allocated and used in a way that benefits everyone in society. This calls for a concentrated effort to help the least fortunate and educated people.
According to data from World Economics, the informal sector makes up around 24.7% of Namibia’s economy, or roughly $8 billion, when looking at the country’s GDP. Realistically, we must acknowledge that those who work and live in the informal sector won’t overnight join the formal, tax-paying one. We cannot start lifting up every Namibian until we engage them in employment, recruitment, and participation in the oil and renewable energy sectors as well as contributing, peripheral, and supporting businesses.
As an economist and proud Namibian, I firmly believe that our country has what it takes to grow and become the next prosperous economy. We must make sure that the “rising tide, rises all ships” in Namibia. The only way to build a society that will continue to grow and not boom and bust is to start with those who are most disadvantaged. We mustn’t grow complacent and think that just because there is the possibility for oil and Green Hydrogen money, we can sit back and let Namibia develop on its own. It will take hard effort, and we will all need to work together. Never use money as a magic wand.
