EDITORIAL: Policy certainty is the investment magnet that Namibia needs
If President Netumbo Nandi-Ndaitwah’s administration wants Namibia to shine on the investment radar, there’s one puzzle it cannot ignore, called policy certainty.
Peace and stability are often touted as the golden tickets in investment boardrooms - and they matter, of course. But nothing shakes investor confidence faster than a vague legislative environment.
Take the National Equitable Economic Empowerment Bill (NEEEB) as a case in point. Launched back in 2011 as the New Equitable Economic Empowerment Framework (NEEEF), it has yet to become law. Some 14 years on, investors are unlikely to twiddle their thumbs waiting for Namibia to finalise rules that could impact their business. Countries that hesitate on these matters simply lose out, as investors seek friendlier pastures with open doors.
Namibia’s emerging oil and gas sector illustrates the stakes perfectly. In July, TotalEnergies CEO Patrick Pouyanné made it clear that his company will not move an inch forward with the Venus offshore oil project without a firm deal on fiscal and operational terms. “We need to be aligned with the government. That means agreeing on how we share costs and manage risk,” he warned.
Other players in the sector are following a cautious wait-and-see approach, delaying major investment decisions until the government clarifies its stance on critical policy matters. Every month of uncertainty risks billions in missed opportunities - and jobs.
Perhaps the silver lining currently is that the oil and gas unit now reports directly to the President. In theory, this should cut through the traditional bureaucratic delays and allow decisive action on both policy and implementation. If executed well, it could signal to investors that Namibia is serious about being a reliable and predictable partner.
Only a brain-dead investor would gamble on policy ambiguity. Others would simply take their money elsewhere.
Peace and stability are often touted as the golden tickets in investment boardrooms - and they matter, of course. But nothing shakes investor confidence faster than a vague legislative environment.
Take the National Equitable Economic Empowerment Bill (NEEEB) as a case in point. Launched back in 2011 as the New Equitable Economic Empowerment Framework (NEEEF), it has yet to become law. Some 14 years on, investors are unlikely to twiddle their thumbs waiting for Namibia to finalise rules that could impact their business. Countries that hesitate on these matters simply lose out, as investors seek friendlier pastures with open doors.
Namibia’s emerging oil and gas sector illustrates the stakes perfectly. In July, TotalEnergies CEO Patrick Pouyanné made it clear that his company will not move an inch forward with the Venus offshore oil project without a firm deal on fiscal and operational terms. “We need to be aligned with the government. That means agreeing on how we share costs and manage risk,” he warned.
Other players in the sector are following a cautious wait-and-see approach, delaying major investment decisions until the government clarifies its stance on critical policy matters. Every month of uncertainty risks billions in missed opportunities - and jobs.
Perhaps the silver lining currently is that the oil and gas unit now reports directly to the President. In theory, this should cut through the traditional bureaucratic delays and allow decisive action on both policy and implementation. If executed well, it could signal to investors that Namibia is serious about being a reliable and predictable partner.
Only a brain-dead investor would gamble on policy ambiguity. Others would simply take their money elsewhere.
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Namibian Sun
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