Opinion
By NJ Ayuk
Namibia is on the brink of a significant economic opportunity with its burgeoning oil and gas sector, boasting an estimated 11 billion barrels of oil and 2.2 trillion cubic feet of natural gas across its four onshore and four offshore basins. This potential could double the country’s GDP by 2040 if managed effectively.
Given Namibia’s existing financial accountability measures, such as transparent governance structures and anti-corruption laws, joining the Extractive Industries Transparency Initiative (EITI) could further enhance the country’s transparency efforts in the oil and gas industry.
The EITI promotes the accountable management of natural resources to benefit citizens, fostering economic growth, development, and poverty reduction. By disclosing information along the extractive industry value chain, EITI members aim to ensure that resource wealth benefits the public.
Namibia’s recent oil discoveries, such as Galp Energia’s Mopane discovery in the Orange Basin, highlight the country’s potential as an attractive destination for oil companies. However, amid this boom, it’s crucial to address corruption and promote transparency in the industry.
While EITI has been successful in reducing corruption in member countries, concerns remain about certain multinational companies’ involvement, such as Glencore Plc, which has faced bribery allegations. Despite these challenges, EITI membership offers numerous benefits, including enhanced accountability for stakeholders and improved oversight of oil revenues.
As Namibia moves forward with its oil and gas development, joining EITI could ensure that these resources translate into tangible improvements in citizens’ lives while promoting sustainable economic growth.
By NJ Ayuk is the Executive Chairman, Africa Energy Chamber
F.A
June 3, 2024
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