Hydrogen likely to primarily benefit affluent Namibians – researcher

Additional income generated by Namibia’s hydrogen industry will likely benefit affluent Namibians the most.

This is according to preliminary projections presented by Mwala Lubinda, a researcher at Monasa Advisory and Associates.

Lubinda was speaking during a presentation titled ‘An Economic Outlook: Assessing the Socio-Economic Benefits of Namibia’s Hydrogen Industry’ in Windhoek on Monday.

According to Lubinda’s projections, additional income of N$87.9 billion will be generated annually once the hydrogen industry is operational.

Of this sum, 59% will go to the most affluent quintile of urban households, while another 18% will go to the most affluent quintile of rural households.

The second-most affluent quintile of urban households will gain 10% of the additional income, and the middle quintile of urban households will receive 3%, according to the model presented by Lubinda.

During the investment phase, lasting until 2030 and in some cases until 2040, Lubinda said N$99.4 billion of additional income will potentially be generated.

Here too, the sum will mostly benefit the most affluent quintiles of urban and rural households, with the groups gaining 57% and 17% of the sum, respectively.

The second-most affluent and middle quintiles of urban households stand to gain 11% and 4%, respectively.

Eline van der Linden, head of impact and environmental, social and governance at the government’s green hydrogen commission, said reallocation within families would likely mitigate the uneven distribution.

“Household redistribution will be the initial trickle-down redistribution,” she said during a panel discussion at the event.