Will Namibia fall for the Oil Curse?

AUTHOR: David Jarrett Editor@ RDJ Publishing and RDJ Group ChiefExecutiveOfficer

Namibia is currently exploring and developing its offshore oil and gas reserves The country has taken several steps to mitigate the potential negative impacts associated with the resource curse by implementing strong governance frameworks, transparency measures, and regulatory systems. Namibia has learned from the experiences of other countries and is working to avoid the pitfalls associated with the mismanagement of resource wealth

The "oil curse" phenomenon, also known as the "resource curse," refers to a situation where countries rich in natural resources, particularly oil and minerals, experience negative consequences such as corruption, economic instability, social inequality, and political conflicts. While the oil curse has affected some resourcerich nations, it does not necessarily mean that it will impact Namibia in the same way a way forward, asking the conference to address:

The recent Oil and Gas Conference in Namibia during April 2023, held under the banner of Shaping the Future of Energy towards Value Creation, clearly indicates the seriousness by which the matter is taken. Practical action directed by the Hon. Minister of Mining and Energy (Hon.

Issue 1: The global importance of energy requires careful attention, as demonstrated by the current tensions in geopolitics.

Issue 2: Namibia and Africa as a whole are experiencing a severe shortage of energy, and it is crucial to utilize all available resources to enhance the well-being of the population

Issue 3: The recent oil discoveries in the country will only be beneficial if managed transparently and inclusively, with a focus on local content and the involvement of the next generation.

Issue 4: The need to be responsible custodians of a valuable resource and manage it sustainably for the present and future generations

To prevent the oil curse, Namibia has focused on the following key strategies: Strong Governance: Namibia has established institutions, legal frameworks, and regulations to ensure transparency, accountability, and responsible management of its oil and gas resources This includes clear guidelines for revenue management, environmental

Diversification: Namibia recognizes the importance of diversifying its economy beyond reliance on oil and gas. The government has been actively promoting sectors such as tourism, agriculture, manufacturing, and renewable energy to reduce dependence on oil revenues and encourage sustainable development Even more so the potential for green Hydrogen to play a role in diversification of energy and trade.

Capacity Building and Local Participation: Namibia aims to build local capacity and expertise in the oil and gas industry By developing skilled human resources and promoting local content requirements, the country seeks to maximize the positive impact of the sector on job creation and economic empowerment for its citizens.

Stakeholder Engagement: Namibia emphasizes engagement with local communities, civil society organizations, and international partners to ensure inclusive decision-making, address potential social and environmental concerns, and foster a fair distribution of benefits from oil and gas activities

While the risks associated with the oil curse exist, Namibia's proactive approach and commitment to good governance and sustainable development can mitigate these risks Quoting the Hon Minister again,

However, continued vigilance and effective implementation of policies and regulations will be crucial to ensuring that Namibia harnesses its oil and gas resources for the benefit of its people and avoids the negative impacts associated with the resource curse

Readings: https://www nieconference com/ https://www namcor com na/ https://www.mme.gov.na/ https://www.observer24.com.na/oil-discovery-ablessing-or-a-curse