More than oil and gas needed
It seems as if Namibia has a bit of a spring in its step – some swagger, if you will.
This could be because winter is behind us; however, I believe there’s another reason.
It is the ‘buzz’ surrounding the oil exploration and discoveries that have recently been made in and off the coast of Namibia. As an added bonus, green hydrogen may become a major source of energy and revenue for our sparsely populated nation.
No wonder we are feeling confident. Especially after the economic storm that the pandemic brought globally and locally. The effects of which are still felt every single day.
The oil discoveries, possibly amounting to billions of barrels of oil, have the power to transform our nation. The keen interest in our capacity to generate green hydrogen has seen pledges and investment potential in the billions.
This doesn’t mean we will suddenly transform into a fully-fledged oil and gas economy, with skyscrapers popping up and poverty completely eradicated over the next one or two years.
We need a concerted and focused development plan.
In fact, our National Development Plans as well as our Harambee Prosperity Plan will act as the blueprint for Namibia to rise and become the regional powerhouse that it can be. We often look at the transformation of Singapore, Qatar or Dubai: Within a few short decades, these nations transformed into thriving and world-leading economic centres.
Inclusive of all
Namibia has been on the path of development for more than 30 years since its independence, but we know we have a long way to go.
This is where oil and gas revenue can play a major role, but only if the revenues are distributed and leveraged in such a manner that all parts of society benefit. This requires a focused effort on uplifting the poorest and least educated.
When analysing Namibia’s GDP, we see that about a quarter of Namibia's economy is informal and represents approximately US$8 billion of our GDP, according to data from World Economics.
We must be realistic and understand that the people operating and employed in the informal economy will not suddenly become part of the formal and tax-paying economy. Only through recruitment and employment and having them participate in the oil and renewable energy sectors as well as contributory, peripheral and supporting industries, can we begin to uplift every Namibian.
It is my belief that we have what it takes to develop and become the next booming economy.
Starting with the most marginalised is the only way to create a society that will boom and boom and not go boom and bust. It will take hard work; we will all need to pull together, and we mustn’t become complacent and believe that just because there’s potential revenue, we can sit back and watch Namibia develop by itself. Money is never a magic wand.
- Dr. John Steytler writes in his personal capacity as an economist
This could be because winter is behind us; however, I believe there’s another reason.
It is the ‘buzz’ surrounding the oil exploration and discoveries that have recently been made in and off the coast of Namibia. As an added bonus, green hydrogen may become a major source of energy and revenue for our sparsely populated nation.
No wonder we are feeling confident. Especially after the economic storm that the pandemic brought globally and locally. The effects of which are still felt every single day.
The oil discoveries, possibly amounting to billions of barrels of oil, have the power to transform our nation. The keen interest in our capacity to generate green hydrogen has seen pledges and investment potential in the billions.
This doesn’t mean we will suddenly transform into a fully-fledged oil and gas economy, with skyscrapers popping up and poverty completely eradicated over the next one or two years.
We need a concerted and focused development plan.
In fact, our National Development Plans as well as our Harambee Prosperity Plan will act as the blueprint for Namibia to rise and become the regional powerhouse that it can be. We often look at the transformation of Singapore, Qatar or Dubai: Within a few short decades, these nations transformed into thriving and world-leading economic centres.
Inclusive of all
Namibia has been on the path of development for more than 30 years since its independence, but we know we have a long way to go.
This is where oil and gas revenue can play a major role, but only if the revenues are distributed and leveraged in such a manner that all parts of society benefit. This requires a focused effort on uplifting the poorest and least educated.
When analysing Namibia’s GDP, we see that about a quarter of Namibia's economy is informal and represents approximately US$8 billion of our GDP, according to data from World Economics.
We must be realistic and understand that the people operating and employed in the informal economy will not suddenly become part of the formal and tax-paying economy. Only through recruitment and employment and having them participate in the oil and renewable energy sectors as well as contributory, peripheral and supporting industries, can we begin to uplift every Namibian.
It is my belief that we have what it takes to develop and become the next booming economy.
Starting with the most marginalised is the only way to create a society that will boom and boom and not go boom and bust. It will take hard work; we will all need to pull together, and we mustn’t become complacent and believe that just because there’s potential revenue, we can sit back and watch Namibia develop by itself. Money is never a magic wand.
- Dr. John Steytler writes in his personal capacity as an economist
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