Mbumba says economic outlook positive with oil, gas

Despite doubts surrounding oil and gas prospects, president Nangolo Mbumba is optimistic that this sector will improve Namibia’s economic outlook.

Mbumba on Tuesday morning gave his final address at the Cabinet meeting as the country is set to install a new administration in less than five days.

“The economic outlook remains positive with the discoveries of oil and gas, discoveries of mineral resources and the vigorous promotion of green industrialisation and the blue economy,” he said.

The president’s optimism is two months shy of major investor Shell having written down its holdings in deepwater Namibia by $400 million.

This was also reflected by Research and Markets on Monday reporting that while Namibia is set to become Africa’s fifth largest oil producer, it still faces challenges such as high natural gas content, low rock permeability, and deep-water drilling complexities.

Mbumba said this administration’s efforts at promoting investment and economic growth over the past years has ensured that there are a number of developments on the horizon.

“As our economic performance continues to rebound from the effects of Covid-19, we can look forward to the potential of green hydrogen and oil and gas discoveries, transforming our economy into a new era of prosperity for the Namibian people,” the president added.