President Hage Geingob says the country will continue to prioritise the development of oil and diamond sectors to boost the country’s revenues, despite Namibia’s push for green energy, particularly hydrogen.
“Time has come that we will take action on green hydrogen, we are going to brief everybody and deal with the oil situation. Green hydrogen is going to take many years; thus we will start with the oil and we will not forget the diamonds!” he said on Monday during a courtesy visit to Namib Desert Diamonds (NAMDIA).
“What we are doing right with green hydrogen, the government is going to take action for the remainder of my time, about 2 and half years. This is the time we are going to take action to address problems we are faced with. It might be green hydrogen or oil, but we must leave a legacy. There must be some kind of hope that people can see at the end of the tunnel.”
Namibia is banking on green hydrogen to attract more than US$6 billion in foreign direct investment (FDI) which is anticipated to generate annual revenues more than US$800 million.
At the same time, the National Petroleum Corporation of Namibia estimates that Namibia could generate US$5.6 billion in revenue for the country at peak production from its two oil finds, which have the potential to double the country’s economy, which Bloomberg estimates at US$11 billion by 2040.
Mines and Energy minister Tom Alweendo, who was speaking at the same event, said Namibia’s rough diamond production totalled N$15.8 billion (US$914 million) last year, accounting for approximately 10% of GDP, 40% of the country’s export revenue, and 7% of annual government revenue.
“This is an indication that the commitment and dedication of Namib Desert Diamonds is playing an integral role in generating revenue for the country and contributing positively to the nation’s economy,” he said.
Alweendo noted that with the Ministry’s support, NAMDIA will continue generating value for the country’s highly sought-after diamonds by fetching a premium on the global market.
“With the launch of the Eumbo star, which was a joint venture between Namib Desert Diamonds and one of its clients, the institution is expanding its price discovery mandate through the rest of the diamond value chain, with the aim to discover and unlock the true value of our beautiful resource. This is testimony of the NAMDIA’s commitment to value addition and demonstration that Namibia is well positioned to become a world class and sought-after player in the industry beyond a rough diamond supplier,” he said.
PSG Wealth Management Namibia estimates Namibia to generate over N$12 billion (US$659.6 million) in Foreign Direct Investment (FDI) in 2022 on the back of increased investor confidence and lucrative opportunities in the renewable energy sector.
Namibia’s mining sector, particularly the diamond sector is expected to drive the country’s revised 2022 growth projections of 2.8%.
