Continue Extracting and Shipping or LetThe Minerals Be Underground for Now?

The most uncomfortable conversation in Namibia is one considering the benefits of continuously mining and sending raw materials out to the world.

Every year, I look at mining contributions in all aspects, employment, taxes, procurement and others and compare them to the quantity they ship out.

I look at the transparency in reporting the lack of independent validation on the reported contribution, especially in local procurement.

So then, I ponder what if we let the resources be in the ground until we develop the capacity to process them here and use them in our industrial agenda?

In my observation, if one raises that question in Namibia, one will get blasted by woke politicians and economic analysts.

Statements like “the mining sector is the biggest contributor to the Namibian economy and brings in foreign currency as it dominates export” are thrown around to ensure perpetuity in exploration and ship-out strategy.

Thus, if one questions or suggests increased state shareholding in the mining sector, they will be blasted if they understand the risk involved and the capital outlay — Namibians are deemed not to understand anything and they should settle for whatever.

Honest debates should be held to evaluate the benefits of extracting and shipping the country’s valuable minerals to supply global manufacturing powerhouses and buying back finished products.

Can the country weigh the benefits in a rational mindset, so that we can perhaps slow down with mineral exploration perpetuated by the few who are benefiting and global multinational companies that seek raw materials?

To the educated fellows, can you realistically measure the benefits that accrue to Namibia in exchange for its minerals?
Certainly, many of the educated and economically woke will run to certain mineral employment statistics, which are below 120 000, while others will mention taxes, even though many mines don’t pay corporate taxes.

If one calculates the number of minerals Namibia extracts and sends to the world, would one in their sober mind accept what the country gets from its resources?

Would you encourage more exploration of more mineral resources or would you say enough is enough?

We should sit down and weigh the monetary benefits of our mineral resources, as we are being paraded to extract more and export in exchange for employment and some taxes.

Is that all for the third biggest uranium producer, one of the largest suppliers of diamonds, the biggest copper smelter and many more?

Procurement numbers are paraded every year, amounting to billions, but can someone do due diligence on what is being procured by the mines in Namibia and how come it is not expanding the country’s industrialisation process?

Many, including political leaders and various economic facilitators, are convinced that exploration, extracting and shipping is economic development, as long as a few jobs are created and some few cents are paid to the government.

It is an exchange of minerals for wages and we clap our hands. We look at what has been mined and shipped out, we calculate the gross domestic product and we celebrate consecutive quarterly growth.

However, nobody questions if that output growth translates into human development across the country and what Namibians received in such exports.

If the owners of the resources celebrate extraction and the volume exported with minimal processing and they are happy with the little crumbs from revenue generated, then there is a problem.

Thus, it would be ideal for the country to start having hard conversations and empirical-guided discussions about if it should continue to explore, or perhaps scale down.

Patting yourself on the shoulder for supplying the world with uranium, copper, gold, diamond, iron and lithium while you get the bare minimum can be quite an insult to both our ancestors and future generations.

If those entrusted with managing and providing custodians are ready to have such hard conversations and interpret economic situations differently, it is wise to start reading manifestos on what they say about mineral resources management.

• Kandjengo Kamkwaanyoka, from Okwalondo, has a deep interest in African economic matters and financing. He writes about his daily experiences, reading and the economic realities from the various corners of Namibia. He can be reached by email at gerastus16@gmail.com