In the face of self-aggrandisement in the national sectors that oversee our natural resources, particularly in the fishing and mining industries, it would be prudent for the Namibian government to introduce a new wave of economic transformation.
This is particularly important now that the nation under the leadership of President Hage Geingob is determined to chart a new path of fiscal prudence and discipline in the management of national resources.
Of late, we have seen mud being slung from one end to the other between Bidvest and its beneficiaries on one hand, and Bernard Esau, Minister of Fisheries and Marine Resources on the other. The whole hullabaloo is because the minister wants to open up and make the Namibian fisheries sector more competitive and thereby increase its contribution to the Namibian economy.
Obviously, there is no question that transparency should be the cornerstone of the amended law. However, it is important that those who have made the fishing sector their private haven should support the minister’s primary motivation, which is to instill competition and open up that sector to all Namibians.
Statistics indicate that our fishing sector produces four times fewer jobs compared to Morocco for approximately the same amount fish harvested annually. It is therefore logical that if the fish quotapreneurs and their fish monopoly masters do not assist the ministry to address the job creation challenge through greater value addition, the minister should do all in his powers, to address a broad-based empowerment drive in this sector, and thereby reduce poverty in the country through job creation – and not the crumbs of handouts that the quotapreneurs and their masters are currently handing out to Namibians.
Fish, just like mineral and other national resources are public resources. They belong to all of us and not only to a few well-connected citizens. Allocation of fishing quotas, mining licenses and other public resources management licenses, is simply a manner of privatising public goods and allocating these to private individuals. The risk associated with the allocation of fishing quotas, mining licenses, and other natural resources licenses to private entities needs to be kept in check at all times.
The inappropriate nature of the management of Namibia’s natural resources, coupled with the corruption that accompanies allocation of these resources to private individuals – as proven over the past decades – makes it obvious that transparency and accountability should be placed at the centre of the natural resources management paradigm shift.
The more equitable way of overcoming this predicament is to create a Namibian Sovereign Wealth Fund that will ensure that our natural resources benefit all Namibians. Its introduction will, in the long run, justify the stance taken by Minister Esau, by not only demonstrating economic patriotism beyond token corporate social responsibility handouts, but would also promote local entrepreneurship development through privatising a 50% public asset ownership as a reward for generating national capital.
In other words, the Namibia Sovereign Wealth Fund would enable ordinary Namibians to co-own at least 50% equity stake in all resource-based licenses. This will also contribute to the funding of public social programmes, such as poverty eradication, health and education.
A Sovereign Wealth Fund is an investment fund owned by a sovereign state with the mandate to invest in financial assets, such as stocks, bonds, precious metals, property and other financial instruments. The basis of investment is for financial and economic benefit, primarily for the citizenry.
If established, the Namibia Sovereign Wealth Fund will have to operate in accordance with international governance standards and best practices as stated in the Santiago Principles. As a state-owned investment fund, it may also invest in real and financial assets and be funded by revenues from our natural resources through ensuring that the public owns a stake in those fishing, mining and other quotas and licenses.
The benefits for both the state and public are too enormous to enumerate here. Suffice it to say that our country will have sound and transparent economic competitiveness aligned to the global standards of transparency and accountability in the management of natural resources, as well as prudence in resources management which will curtail a culture of unrestricted spending of unanticipated income, while ensuring that investments will be based on sound, clear and beneficial economic or financial parameters.
There will be an availability of a pool of savings or back-up funds for future generations, and availability of an infrastructure fund to provide intervention in critical areas of the Namibian economy.
In neighbouring Angola, the Sovereign Wealth Fund has since 2011 – when it was ratified and established – built a strong foundation for the promotion of economic growth, prosperity and socio-economic development. Norway, United Arab Emirates, China, Saudi Arabia, USA and a multitude of other vibrant economies have relied on this system to grow their economy and bring prosperity to their people.
If we are serious with our mantra of eradicating poverty, then we surely need to devise ways and means for the majority of Namibians to share and directly benefit from the abundant natural resources of the country.
* Dr Charles Mubita holds a PhD in International Relations from the University of Southern California.