Namibia to seek local oil value addition
Policy to ensure full benefit is derived
The minister took aim at critics who label value addition as 'resource nationalism', calling them 'unhelpful'.
Namibia will seek more than just revenue in the form of royalties and taxes once its oil resources are being exploited, mines minister Tom Alweendo told participants at Africa Energy Week currently underway in Cape Town, South Africa.
He told attendees that Namibia is almost done compiling its local content policy (LCP), which will ensure full benefit is derived through the entire oil and gas value chain.
“It is our intention to manage our nascent oil and gas sector to transform our economy beyond taxes and royalties that would accrue to the state. We are set to introduce an LCP to ensure that in-country value is generated from the exploitation of our oil and gas resources,” Alweendo said.
“What constitutes local content can be defined in various ways. However, for us, local content is defined as the active participation of the Namibian workforce and entrepreneurs in the oil and gas sector.”
Driving industrialisation
According to the minister, if well developed, an LCP will help drive industrialisation.
“We need a policy that will facilitate economic diversification and deepen backward and forward linkages from various segments of the oil and gas sector value chain, thereby fast-tracking our industrialisation. For that to happen, our LCP must have elements that promote jobs,” he said.
Alweendo also voiced his disappointment in criticism directed towards efforts by countries like Namibia which seek local value addition, saying they should not be undermined.
“It is concerning that when we talk about local content or value addition to our natural resources, invariably phrases like ‘resource nationalism’ or ‘harmful economic practices’ are being thrown at us,” he said.
Local resources, Alweendo argued, should be used for the benefit of local economies.
“This is not helpful. To us, it is rational that our natural resources need to be developed in the best interest of our citizens. For us, it makes perfect sense that our natural resources ought to be used to build resilience and prosperity for our communities.”
He told attendees that Namibia is almost done compiling its local content policy (LCP), which will ensure full benefit is derived through the entire oil and gas value chain.
“It is our intention to manage our nascent oil and gas sector to transform our economy beyond taxes and royalties that would accrue to the state. We are set to introduce an LCP to ensure that in-country value is generated from the exploitation of our oil and gas resources,” Alweendo said.
“What constitutes local content can be defined in various ways. However, for us, local content is defined as the active participation of the Namibian workforce and entrepreneurs in the oil and gas sector.”
Driving industrialisation
According to the minister, if well developed, an LCP will help drive industrialisation.
“We need a policy that will facilitate economic diversification and deepen backward and forward linkages from various segments of the oil and gas sector value chain, thereby fast-tracking our industrialisation. For that to happen, our LCP must have elements that promote jobs,” he said.
Alweendo also voiced his disappointment in criticism directed towards efforts by countries like Namibia which seek local value addition, saying they should not be undermined.
“It is concerning that when we talk about local content or value addition to our natural resources, invariably phrases like ‘resource nationalism’ or ‘harmful economic practices’ are being thrown at us,” he said.
Local resources, Alweendo argued, should be used for the benefit of local economies.
“This is not helpful. To us, it is rational that our natural resources need to be developed in the best interest of our citizens. For us, it makes perfect sense that our natural resources ought to be used to build resilience and prosperity for our communities.”
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