In terms of GPD per capita, Namibia is rated 91st in the world with an annual income of about $4,730. -Which, when compared to a country like Norway, is not much. At the moment, their per-capita GDP is roughly US$ 67,000 annually. First of all, why on earth would I compare Namibia and Norway to one another? One is a well-developed, wealthy country in Europe, and even while Namibia is developing quickly, we still have enormous obstacles. It would be like comparing apples and oranges to compare our two countries. The reason for the analogy is that oil and other natural resources, like fishing and hydroelectric power, are the cornerstones of Norway’s success.
We as Namibians need to start looking toward the future now that oil has recently been discovered off the coast of our country and more discoveries of millions of barrels of oil are likely. There are several instances of resources being a curse around the world. Resources can be a blessing or a burden for a nation. where a small group of well-connected people received benefits beyond their wildest dreams while the majority of the population suffered from destitution. Namibia is resolved not to repeat that error, so it is important to effectively and transparently harness the potential cash production of the oil finds and the ensuing industry and ancillary activities. As a country, we could be on the verge of an economic miracle.
Norway did this when oil was discovered back in the 1960s, transforming the country and the destiny of its population. The Scandinavian country realized that the oil revenues generated should be invested in a fund that would ensure responsible and long-term management of its oil and gas resources.
The Norwegians realized early on that they had been given an opportunity to create a better life for its citizens, with the key phrase being ‘for future generations.’ Our small country has now been gifted this opportunity as well. The famous quote from Nelson Henderson; “The true meaning of life is to plant trees under whose shade you do not expect to sit,” is what Namibia is aspiring to do with the potential oil and hydrogen gas revenue. Creating a future for the country where every citizen benefits. The United Nations has 17 Sustainable Development Goals (SDG)s, where the baseline goal is to Leave No One Behind (LNOB). With long-term forward planning, oversight, and proper checks and balances in place, a Namibian sovereign wealth fund will transform Namibia into an economic and social miracle. Where hospitals, schools, education, and first-class infrastructure for everyone are the norm and achieving the UN SDGs will be the natural outcome.
This is not a pipedream; Norway has shown us it is possible. The blueprint of success exists, we just need to create an African version that will suit our unique set of circumstances. I would go even further and state that we need to ‘Namibianize’ this Sovereign Wealth blueprint. It is about building generational prosperity where our children and our children’s children, and the nation are the beneficiaries. This is how industry and politics can truly build a long-lasting generational legacy, where politicians become celebrated statesmen and will be remembered long after they are gone. By learning and implementing the best practices from overseas, Namibia’s Sovereign Wealth Fund will work in service of all Namibians. One of the most important things to do is to remain in charge of our resources by ensuring that we as Namibians are fully-fledged partners that engage on an equal footing with the companies that will exploit the licenses, drill for oil and develop the Green Hydrogen plants.
We must be patient, and smart and show our citizens and the world that we can manage our resources and fulfil our potential for the good of the nation. Thereby over time closing the GDP per capita gap with Norway and other prosperous nations.
