Alweendo warns of potential inequality gap in oil, gas industry

Minister of mines and energy Tom Alweendo warns that if oil and gas resources are not used to benefit every one, it might increase the gap between the rich and the poor.

Speaking during the launch of the Industrial Baseline Survey (IBS) in Windhoek yesterday, Alweendo said there are concerns around the industry.

He said if the country is not careful, the benefits from the industry will only be enjoyed by a few.

“We should make sure local capabilities are spread across to the average Namibian,” said Alweendo.

Deloitte conducted the study to identify opportunities and gaps within the country’s upstream oil and gas sector.

Regarding the results of the survey, Deloitte Namibia country leader Melanie Harrison said there is more awareness that needs to be done concerning the industry for locals to understand where the opportunities are.

According to her, one of the challenges identified was a lack of workforce.

There are also expectations of more transparency from government and stakeholders to mitigate the risk of corruption.

“There is limited sector growth due to resource misappropriation, lack of integrity and lack of accountability,” Harrison added.

According to the research, although there are enough general support qualifications, crucial technical positions are lacking.

A challenge remains in bridging the gap between available qualifications and specialised skills needed for the sector’s growth.

The research was conducted on a hypothetical basis as this kind of research is normally done after the Final Investment Decision.

However, Namibia has not reached that stage yet, so the research is part of the planning and preparation.

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