Green industrialisation is expected to establish a new growth trajectory for Namibia by addressing current structural challenges.
This emerging industry is expected to deliver high-skill jobs, increased productivity, create new markets, attract foreign direct investment (FDI) and position Namibia as a climate leader.
This course of action is contained in a document titled; “A blueprint for Namibia’s green industrialisation, August 2024”. The document was released at the weekend as the country remembered the country’s third President, Dr Hage Geingob, who died on 04 February this year.
“His visionary leadership and unwavering commitment to prosperity and economic transformation have been instrumental in shaping this blueprint, laying the foundation for Namibia’s green energy future,” said James Mnyupe, green hydrogen commissioner, who doubles as the presidential economic advisor, in the document.
The Green Industrialisation Blueprint represents Namibia’s revolutionary economic objectives.
Namibia anticipates that the successful implementation of its green industrialisation blueprint could create 250 000 jobs, while eliminating more than 75 million tonnes of carbon dioxide.
“An estimated 185 000 direct jobs will be created in the hydrogen industry alone,
70 000 direct, indirect and induced jobs from green manufacturing, and even more from infrastructure upgrades like ports and rail,” the document reads.
The document also sees a potential US$55 billion in foreign direct investment coming into the country, and creating more than US$20 billion in exports, representing US$10 billion GDP growth that could double the size of the country’s economy.
As such, the country stands at the threshold of a transformative era, poised to harness abundant natural resources and strategic advantages to forge a sustainable, prosperous future.
To capitalise on these prospects, the government has been urged to act quickly and decisively to streamline policy, attract investors and deliver enabling infrastructure.
This would also offset Namibia’s heavy dependence on the mining sector, accounting for nearly 50% of exports, and generating 25% of government revenue. This means other parts of the economy are also dependent on mining, for example manufacturing (11.3%) is dominated by the processing of minerals.
Looking at future projects, the document says Namibia aims to refine domestic lithium concentrate to intermediate technical grade lithium for export to Europe, taking advantage of the European Union’s push to diversify its critical mineral supply chain.
Historically, lithium from around the world has been shipped to China for refining. Refineries are technically complex and expensive, and China has until now dominated the industry, with more than 90% of processing capacity.
The document added that the EU end-refining capacity requires intermediate input, as the lithium demand is surging on the back of the growth of the electric vehicle market, with demand forecast to increase 10-fold, from 0.3 million tonnes per annum (mtpa) in 2018 to 3.1mtpa in 2030.
The EU is currently investing heavily in battery-grade refining capacity, which creates an opening for Namibia to supply intermediate processed lithium to new refineries. The EU’s Critical Raw Materials Act establishes a platform for strategic partnership, where Namibia has access to this space. While Namibia has quality raw materials, good port infrastructure, and low-cost energy, securing EU offtake agreements is prerequisite for success.
“Technical-grade refinery likely to be cost-competitive. Scope for domestic miners and EU refiners to JV for investment in technical-grade refinery,” reads the report.
This refinery has a value potential by 2050 of about 2% of current GDP, and could create up to 8 600 jobs. -mndjavera@nepc.com.na