The dawn of 2023 allows us to pause and reflect, but also look ahead to what we could do with the next 12 months and beyond. 

The successful production of Namibia’s oil riches in the next few years remains a beacon the entire nation looks to. It will offer many answers to the myriad challenges we face, and has been a source of great optimism since TotalEnergies and Shell announced oil discoveries early last year. 

We should not get carried away with what it could bring, as prosperity has been elusive for many nations with huge oil reserves. But we should be optimistic enough to take ownership of it, and capitalise on the discovery. There are many good examples for us to follow. 

When oil exploration started in Norway in the 1960s, the country also did not have the technical and bureaucratic capacity to optimally utilise the vast reserves under its surface. 

Smart policies and a fierce political will ensured the entire country benefits even today, and tweaks to the laws that govern the country’s oil interest ensured Norway is one of the wealthiest and most advanced economies on the planet, and its people enjoy a high standard of living. 

Oil contributed massively to the economic growth and financing of Norway’s welfare state. 

Since production started in the early 1970s, the oil and gas sector has grown into Norway’s largest sector. 

Today, it has one of the largest sovereign wealth funds, and oil revenues have been used to bolster other industries, thereby avoiding the paradox of plenty, also known as the resource curse. 

Namibia’s oil discovery numbers are staggering. 

In his latest New Year’s message, President Hage Geingob reiterated the significance of the find: 

The discoveries are ranked among the top 20 globally in the last decade. Experts predict Namibia stands to receive N$500 billion in foreign direct investment, and with an estimated production of 6.5 billion barrels of oil, the discoveries could earn Namibia between N$60 to N$95 billion annually in taxes and royalties. It is estimated that the two oil projects will generate over 3 600 jobs at the peak of production and double Namibia’s Gross Domestic Product by 2040 to about N$636 billion. 

Namibia stands on the verge of great promise that could mean the end of hardship for the majority of the people. 

Or, it could mean a select few will benefit from the resources while the masses look on in continued deprivation. 

This should be avoided at all cost. 

This will certainly mean an end to the country’s much-vaunted peace and stability, and we would have followed many resource-rich countries who find themselves in perpetual conflict and strife. 

Namibia already possesses all the necessary factors for internal tensions turning to violence, and an asymmetrical distribution of oil wealth may be the spark. 

To avoid this, we should prepare robust policies, laws and practices that protect our environment, empower our people and utilise our resources sustainably. We need to produce a blueprint for how we will use oil for the betterment of our society. 

We should not narrowly think of just the jobs and the tax revenue from drilling our oil. The industry should spur downstream innovation and value, but also advances in environmental protection. And we should already think of what to do when the wells run dry. 

We should do everything possible to ensure our environment suffers the least possible disruption or... leave it all in the ground. 

This is the time to do our homework and learn from the best. We cannot afford to squander the earnings from those resources. 

Now is the time to prepare.