New investment model to foster development in Namibia's oil and gas sector

Namibia, a country blessed with abundant natural resources, recently made a significant discovery of oil and gas reserves off its shores. This discovery presents a promising opportunity to transform the nation&#039;s fortunes, as seen in other countries around the world. However, considering the challenges of insecurity and regional instability, a fresh approach is necessary to ensure sustainable development in the sector, while also addressing national security concerns. Like any other state in the infancy of oil and gas discoveries, Namibia should not be reluctant in the area of instability and chaos that is normally associated with these energy discoveries.Learn from Mozambican experienceDrawing lessons from Mozambique, a regional member that experienced a major gas find that attracted substantial investments but faced setbacks due to attacks by rebels affiliated with ISIS in the Cabo Delgado Region, Namibia must take proactive measures to avoid similar disruptions. The Mozambican project attracted investments totaling US$20 billion, with TotalEnergies alone contributing nearly US$4 billion before suspending its operations due to security concerns.The rise of terrorism in AfricaAfrica has become a vulnerable target for global terrorism, and the presence of an ISIS affiliate in Mozambique highlights the emergence of homegrown extremist movements. Neglected development in certain regions, with an excessive concentration of resources in the capital city of Maputo and its surroundings, has led to endemic poverty and inadequate social infrastructure in these neglected areas.Introducing a new investment modelTo address these challenges and promote sustainable investment, experts propose a new investment model that places the social welfare of host regions at the forefront. Waiting until project completion to assist the communities that host them is no longer sufficient; instead, community development should be a fundamental condition for investment initiatives.A collaborative approach for effective executionMoreover, to ensure the effective execution of social projects and mitigate the actions of rogue actors seeking to disrupt investments, a consortium jointly appointed by governments and investors could be established to manage the social initiatives. This collaborative approach would enhance accountability and transparency, mitigating the risk of resource diversion.Addressing root causes of instabilityThis comprehensive investment model goes beyond the immediate project goals and emphasises the delivery of vital services such as education, healthcare and transportation in host communities. By addressing the root causes of regional instability, such as poverty and inadequate infrastructure, this model fosters a favourable investment climate and contributes to long-term stability.Empowering local communities and youthFurthermore, investments in the oil and gas sector would generate increased employment opportunities for local youth, benefiting both the communities and the projects themselves. Proactive community development initiatives, inspired by experiences in regions like south-eastern Nigeria, are essential to avoid unexpected challenges for investors and ensure a harmonious relationship between projects and communities. The Nigerian case is essential for reference as far as host communities and natural resource discovery are to converge on a meeting ground.Collaboration for success Overcoming potential resistance from governments and bureaucratic obstacles requires a collaborative effort among investors, supported by regional and international organisations. This collective approach is crucial to drive the success of the new investment model and ensure that the welfare of local communities is prioritised throughout the development process.ConclusionNamibia has a unique opportunity to learn from past experiences and proactively prioritise the welfare of local communities in its oil and gas sector. By implementing this innovative investment model, Namibia can attract responsible investors, enhance regional stability and create a prosperous and inclusive future for all its citizens. This comprehensive approach not only addresses national security concerns but also fosters sustainable development that benefits both the country and its people.- Lukas Shefika is a security professional and academic and a candidate for a master of arts in security and strategic studies at the University of Namibia.

New investment model to foster development in Namibia's oil and gas sector

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Aina Kashihalwa 1 Year Ago09 July 2024

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New investment model to foster development in Namibia's oil and gas sector

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Aina Kashihalwa 1 Year Ago09 July 2024

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