The recent discovery of significant oil and gas reserves in Namibia presents a transformative opportunity for the country. If managed effectively, these resources could propel Namibia towards unprecedented economic growth, providing a foundation for development that benefits all citizens. 

However, as history has shown, the discovery of natural resources can be both a blessing and a curse, depending on how they are managed. As Namibia participates in the ongoing Namibia Oil and Gas Conference, themed ‘The Next Steps Towards a Prosperous Oil and Gas Industry to Power Namibia’s Sustainable Future’, it is essential to draw lessons from global successes and failures while crafting a strategy that aligns with the nation’s long-term goals. 

Norway: A model for equitable resource management 

One of the most compelling examples of successful oil and gas management is Norway. When oil was discovered in the North Sea in the late 1960s, Norway made a strategic decision to ensure that its natural resources would benefit the entire population. The Norwegian government established state equity in petroleum activities, with the state-owned company Equinor (formerly Statoil) playing a central role in managing the resources. This approach ensured that the wealth generated from oil was used to establish the Government Pension Fund Global (GPFG), now the largest sovereign wealth fund in the world, valued at over US$1.4 trillion. According to the Norwegian ministry of petroleum and energy in their 2024 report, ‘The Norwegian Oil and Gas Model: A Sustainable Approach’, the country’s success lies in the sustainable and equitable management of its resources, a model that Namibia can emulate to ensure long-term national development. 

Namibia has much to learn from this approach. By ensuring that the National Petroleum Corporation of Namibia (Namcor) handles State equity in oil and gas ventures, Namibia can safeguard the interests of its citizens. This would involve Namcor not only in revenue generation but also in enhancing governance through transparency and accountability, ensuring that the wealth from these resources is used to benefit all Namibians. 

Avoiding the resource curse

While Norway offers a positive example, other countries provide cautionary tales. The so-called resource curse has plagued many nations, particularly in Africa, where the discovery of oil and gas has often led to corruption, environmental degradation, and social unrest rather than prosperity. Nigeria, for example, has struggled with these issues despite being one of the largest oil producers in Africa. Corruption and mismanagement have prevented the country from fully capitalising on its oil wealth, leading to widespread poverty and underdevelopment. Michael L Ross, in his book ‘The Oil Curse: How Petroleum Wealth Shapes the Development of Nations’, provides an in-depth analysis of how resource-rich countries, particularly in Africa, have often failed to translate their natural wealth into widespread economic development.

Similarly, in Venezuela, which was once one of the wealthiest countries in Latin America due to its vast oil reserves, poor management and political instability have led to economic collapse. Francisco Monaldi, in his report ‘The Collapse of Venezuela’s Oil Industry: The Role of Management and Policy Failures’, published by the Brookings Institution, highlights how policy failures and mismanagement contributed to the collapse of Venezuela’s oil industry, offering a critical lesson for Namibia as it navigates its own resource management challenges. 

These examples highlight the importance of strong governance and the need to diversify the economy to avoid over-reliance on a single resource. Namibia must take heed of these lessons and implement policies that promote transparency, accountability, and sustainable economic development. The Dutch disease, where an over-reliance on natural resources leads to a decline in other economic sectors, is a particular risk that Namibia must manage through careful economic planning and the development of other industries such as agriculture, manufacturing, and tourism. 

State-led development: Lessons from the Asian Tigers

In addition to learning from oil-rich nations, Namibia can also draw valuable lessons from the state-led development models of the Asian Tigers—South Korea, Taiwan, Singapore, and Hong Kong. These countries, despite their lack of natural resources, achieved rapid economic growth through a common agenda that emphasised industrialisation, export-oriented policies and strong government intervention. 

The state played a pivotal role in driving development, creating an environment that fostered innovation, infrastructure development, and human capital investment. Namibia can apply similar principles in managing its oil and gas sector. By adopting a state-led approach driven by a clear national agenda, Namibia can ensure that its natural resources are used to build a diversified economy that is resilient to global market fluctuations. This approach would involve strategic investments in infrastructure, education, and technology, ensuring that the benefits of oil and gas extend far beyond the sector itself. 

Balancing oil and gas with green hydrogen: A hybrid model for sustainable development

 As the world increasingly embraces cleaner energy sources, Namibia has a unique opportunity to position itself as a leader in both fossil fuels and renewable energy. The country is already making significant strides in the development of green hydrogen, which has the potential to become a major export and a cornerstone of the global transition to sustainable energy. 

The hybrid model, which integrates the exploitation of oil and gas with the development of green hydrogen, has proven successful in other countries. The United Arab Emirates (UAE), for example, continues to invest in renewable energy while leveraging its oil wealth to drive economic growth. The UAE’s Renewable Energy Strategy 2050, as outlined by the UAE ministry of energy, emphasises a balanced approach to energy, ensuring that economic growth is sustainable and environmentally responsible. 

Namibia’s Minister of Mines and Energy Tom Alweendo has highlighted the importance of this balanced approach, stating, “Our policy is clear: Namibia will maximise the benefits of our oil and gas discoveries, but we will not do so at the expense of our future. We are committed to a hybrid model that leverages both fossil fuels and green hydrogen, ensuring a balanced and sustainable energy portfolio. Our resources will be used to develop Namibia for Namibians, with a focus on creating a future that is equitable and sustainable for all.” 

Opportunities 

The discovery of oil and gas in Namibia presents significant opportunities for job creation, skills development, and broad economic growth. Beyond the immediate benefits of taxes and royalties, the oil and gas sector can drive the development of supporting industries, create employment opportunities, and generate revenue that can be reinvested in critical areas such as education, healthcare, and infrastructure. 

However, for Namibia to fully realise these benefits, it must ensure that Namcor plays a central role as an equity partner. Namcor’s involvement will be crucial in ensuring that the wealth generated from Namibia’s oil and gas resources is equitably distributed among its citizens. 

This requires Namcor to adopt best practices from successful national oil companies, such as Equinor, which has set a global standard for transparency, efficiency, and corporate governance, as detailed in their ‘2024 Annual Report’. Finalising and implementing a local content policy will also be essential. Such a policy should prioritise the inclusion of Namibians in the oil and gas sector, ensuring that they are genuinely empowered to contribute to and benefit from the industry. 

Namibia’s right to develop

 As Namibia navigates its path to development, it is crucial that the country is allowed to pursue its economic goals without being unduly constrained by external pressures. While global leaders advocate for a sustainable world, many of these same countries continue to exploit fossil fuels and invest in energy projects that are not entirely clean. Norway, for instance, continues to drill new oil rigs, while France is investing in new nuclear power plants, as reported by the World Nuclear Association in their ‘2024 overview of Nuclear Power in France’.  Namibia’s contribution to global greenhouse gas emissions is minimal, accounting for less than 5% of the world’s pollution. I

t is only fair that Namibia be allowed to utilise its oil and gas resources to drive economic development, just as other nations have done. 

Namibia’s pursuit of economic advancement should not be suppressed by global demands that do not take into account the country’s right to develop in the best interests of its people.

A strategic path forward

The discovery of oil and gas in Namibia presents an unprecedented opportunity for the nation’s development. However, the key to unlocking this potential lies in strategic management, robust governance, and a commitment to sustainable development. By learning from global examples, adopting a hybrid energy model, and ensuring that Namcor plays a central role in safeguarding the nation’s interests, Namibia can chart a path to prosperity that benefits all its citizens.  

The oil and gas resources discovered in Namibia belong to the Namibian people, and it is their right to see these resources used to improve their lives. As the country continues to develop its local content policy and refine its approach to resource management, it must do so with the confidence that it can achieve equitable, sustainable growth. 

Namibia’s future is bright, but it is up to all stakeholders to ensure that this new wealth is managed wisely, transparently, and for the benefit of every Namibian.

*Lot Ndamanomhata is a graduate of public management, journalism, and communication. This article reflects his views and writes entirely in his personal capacity