Energy and Economic Development in Namibia by Harnessing Local Potential

The land of the Brave has been bestowed with some of the most majestic, rugged landscapes, fierce wildlife and an abundance of natural resources.

While many of these natural resources are already a mainstay of our economy, recent years have seen the focus shift to the potential of energy resources.

With potentially huge oil and gas reserves and the possibility of harnessing solar and wind energy, Namibia is well-positioned to become a leader in the development of green hydrogen projects.

By leveraging our diverse energy mix, we have the unique opportunity to address energy security and enable socio-economic growth, all while promoting energy sustainability.

Discussions at recent summits and conferences have underscored the importance of harnessing energy resources.

Energy is a fundamental driver for economic development, and at the most basic level, it promotes growth by bolstering industrial productivity and creating employment.

How do we ensure that local companies, entrepreneurs, communities and the regions of Namibia benefit from Namibia’s resource blessing?

It is of utmost importance that we focus on infrastructure development in the broadest sense.

While these endeavours can be costly, they represent essential long-term investments that will benefit Namibia.

To support the advancement in the energy sector, developing key energy infrastructure, such as expanding the national grid, upgrading transmission networks and transport links, is vital.

These investments are just the beginning, as the development of solar and wind farms, as well as pipelines, storage facilities and export infrastructure to support oil and gas, are equally as important.

Key to supporting the above infrastructure development is providing access to finance and capital.

The development of energy infrastructure will also serve as a catalyst for the growth of peripheral industries, supplying everything from workwear, safety boots, catering, tools and infor mation and communication technology (ICT) equipment.

Local companies can provide skilled workers, engineers and experts, ensuring that newly established and small and large companies can embrace the opportunity of growth the energy sector presents, both directly and within the supporting value chains.

This can generate improved turnover, create employment and drive long-term growth.

The future is bright, and a whole cohort of Namibians are excited to contribute in one way or another and forge a path for themselves and their communities.

However, one of the major challenges that business owners, entrepreneurs and self-starters continue to face is the need for more access to finance.

As a bank, we have an intimate understanding of the local investment climate and understand the potential of our entrepreneurs and companies.

We are optimistic about the future, recognising that access to finance and nurturing established or new companies is not sensible from an economic point of view, but also for Namibia’s long-term socio-economic growth.

The potential for job creation in the energy sector is vast, and we are excited about the opportunities it will bring.

Access to affordable and sustainable energy is essential for countries to transition from an agriculture-based economy into a more industrialised one.

Affordable and reliable energy allows industries to operate efficiently with lower input costs, which ultimately boosts productivity.

For a developing country like Namibia, our abundant natural resources are crucial in driving industrial growth.

What this could mean for Namibia, where mining activities contribute significantly to the gross domestic product, is the increase in productivity due to more affordable and sustainable energy.

• Naftal Akweenda is the relationship manager at FNB Commercial: Enterprise Banking.