President Hage Geingob says the country is set to get a N$100 million boost from concession fees from the energy firm awarded rights to construct Namibia’s inaugural green hydrogen projects.
Hyphen Hydrogen Energy, which won two bids to construct the country’s green hydrogen projects, committed to pay N$50.34 million in annual concession fees for each site starting the 1st quarter of 2022, even before generating any revenue.
“In 2022, we shall secure the first 100 million Namibian dollars in concession fees from the preferred bidder, bringing immediate relief to the fiscus and translating the vision of a synthetic fuels industry into immediate Foreign Direct Investment flows,” the President said in his end of year address.
He said the implementation of the country’s green hydrogen initiative was part of the government’s on-going plan to diversify its dependency on the extractive sector.
“As a nation, we cannot sit back and wait for commodity prices to dictate the economic outcomes we yearn for. For that reason, we have to think out of the box and pursue innovative ideas and ventures that can generate economic growth. One of these ventures is Green Hydrogen,” Geingob said.
“Namibia will need to diversify its portfolio of economic activities in strategic sectors, which can support our access to the African Continental Free Trade Area (AfCFTA) and the global market. Diversification of economic products, including finished products, and unique services will enable us to be cushioned against external risks and shocks. In order to achieve this, we need to retool and reskill our workforce. If there is one thing this past year has taught us, it is that one must adapt, evolve or die.”
He, however, noted that the country expects to see improved economic growth in 2022, with the domestic economy expected to grow by 1.5% in 2021, and 3.3% in 2022 by the Bank of Namibia, with risks to domestic growth remaining dominated by the impact of the COVID-19 pandemic.
“Despite the fact that the global economy has taken a battering, thereby affecting our economy, positive sentiment remains and barring any new COVID-19 variants, we expect to see improved economic growth in 2022,” Geingob said.
“If we fail to reach acceptable levels of vaccination and achieve herd immunity, we are effectively cutting ourselves off from the world and severely limiting our economy’s ability to generate the prosperity we so desperately long for.”
