Namibia is poised to become a leader in the green hydrogen sector. With vast renewable energy resources, the country has the potential to not only meet its own energy needs sustainably but also to become a significant exporter of green hydrogen.
According to research, the green hydrogen sector is likely to contribute 600,000 jobs by 2040. The key to unlocking this potential lies in the development and implementation of robust local content policies. These policies are essential for ensuring that the benefits of the green hydrogen sector are widely shared among Namibians, contributing to socio-economic development and the betterment of the livelihoods of our people.
The concept of local content is not new, and many countries have implemented policies to ensure that their citizens and local businesses benefit from their natural resource. Norway, for example, has successfully used local content policies to develop its oil and gas sector, ensuring that a significant portion of the value generated remains in the country. The Norwegian model emphasizes the development of local expertise, technology transfer, and the creation of competitive local suppliers.
Similarly, countries like Kenya and Morocco have shown that it is possible to implement local content policies in a way that benefits both international investors and the local community. Kenya’s geothermal sector has thrived due to deliberate efforts to involve local communities and businesses in the development process. Morocco’s Noor Ouarzazate Solar Complex, one of the world’s largest solar power plants, has been a success story in terms of integrating local content policies, with significant investment in local workforce training and development.
The Local Content Conference that took place in Luderitz from 16 to 18 April, brought together experts from various countries around the world, who shared their experiences on local content practices. Namibia can draw valuable lessons from these experiences. From the discussions, the first step should be to conduct a thorough analysis of the existing capabilities within the country and identify gaps that need to be filled to support the green hydrogen sector. This includes assessing the skills available in the workforce, the capacity of local suppliers, and the infrastructure in place.
For Namibia, the development of the green hydrogen sector presents an opportunity to leapfrog traditional energy systems and create a modern, sustainable economy. Based on lessons learned from other countries, the sector will be able to achieve this if we develop a clear and comprehensive local content policy framework that sets out expectations for the involvement of local businesses in the green hydrogen sector. Equally, there would be a need to invest in education and training programs to build the skills needed as well as create incentives for international investors to partner with local businesses and transfer knowledge and technology.
As the green hydrogen sector does not operate in a vacuum, envisaged green hydrogen local content policies must be aligned with the country’s broader economic development goals and contribute to the diversification of the economy. Whilst no formal local content policy exists for the green hydrogen sector, a framework that addresses local content is in place.
With the signing of the Feasibility Implementation Agreement with Hyphen, one of the largest envisioned green hydrogen projects in the country, a social economic development (SED) framework was developed. Key elements of the SED framework include employment creation, enterprise development and skills development, to name but a few. Monitoring of the implementation of the SED framework will be key, as this will inform the development of a local content policy for the green hydrogen sector.
As we stand at the threshold of a new era in energy production, it is imperative that Namibia seizes this moment to ensure that the green hydrogen sector is developed in a way that maximizes the benefits for all Namibians. This will require a concerted effort from all stakeholders, including the government, private sector, and civil society, to ensure successful implementation of local content policies that are both ambitious and pragmatic.
The call to action for Namibia, for the green hydrogen sector, is clear. We should learn from the mistakes made by other countries and must manage local content in a way that truly ensures the socio-economic development of the country and the betterment of the livelihoods of its citizens. This is not just an economic imperative but a moral one. By doing so, we can ensure that the green hydrogen sector is not only a source of clean energy but also a catalyst for sustainable development and prosperity for all Namibians.
*Joseph Mukendwa is Head of Policy, Planning and Strategy at the Namibia Green Hydrogen Programme (NGH2P)
