Opinion
Namibia And China’s Energy Quest
Western investors can be forgiven for having the perception that China has bought Africa’s energy assets lock, stock and barrel.
Last month however, a new oil frontier opened in South West Africa, which as yet represents a level playing field, with no Chinese investment as yet. Accordingly, investors should watch developments in Namibia, which earlier this month announced massive offshore oil finds.
On 6 July Namibia’s Mines and Energy Minister, Isak Katali announced the discovery of vast oil reserves off the southern Namibian coast in the South Atlantic.
During his ministerial briefing to Parliament, Katali said, “Enigma Oil and Gas, a company owned by Chariot Oil and Gas, has identified five prospects in its northern blocks of 1811A and B. The company again has contracted Senergy GB Limited to design a first well to test one of these prospects in the Tapir area, which lies in water 2,100 meters deep.
According to him, “target reservoirs range in depth from 3,900 meters to 4,800 meters and most likely reserves, in the event of success, are estimated to be nearly 500 million barrels. Enigma is currently actively seeking a deep-water rig to drill this well during the fourth quarter of this year.
“Enigma expects to find oil rather than gas and would develop a discovery through a floating production, storage and offloading vessel on a fast track basis with first production planned for 2015/16. Currently, Enigma holds 100 per cent equity in the blocks but is seeking industry partners to share the well cost or risk in this venture,” he added.
According to the weekly Namibian Economist, the offshore blocks are estimated to hold total reserves of up to 11 billion barrels, which is nearly equal to that of neighbouring Angola’s reserves of 13 billion barrels of oil.
The discoveries represent a massive potential windfall for the Namibian government. In neighbouring Angola, oil production accounts for nearly 85 per cent of its GDP, 90 per cent of its export revenue, and nearly two-thirds of government revenue.
Namibia could certainly use the income. According to the United Nations Development Programme, Namibia is a middle-income country with one of the most unequal income distributions in the world,
The recent Namibia Household Income and Expenditure Survey, more than one in four households live in poverty and the poorest 10 per cent of households command just one per cent of the country’s total income, whereas the wealthiest 10 per cent control more than half. The country has massive social problems, with an estimated unemployment rate of 51 per cent, while the UNDP’s 2005 Human Development Report indicated that 34.9 per cent of the population live on $1 per day and 55.8 per cent live on $2 per day.
The economy is heavily dependent on the extraction and processing of minerals for export. Mining currently accounts for 8 per cent of Namibia’s GDP, but provides more than 50 per cent of the country’s foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds.
Namibia’s other mineralogical assets include being the world’s fourth-largest producer of uranium as well as a significant producer of large quantities of zinc along with smaller amounts of gold and other minerals. Namibia’s mining sector employs only about 3 per cent of the population, while about 35-40 per cent of the population currently lives on subsistence agriculture.
In developing its hydrocarbon potential assets Namibia has a number of advantages over many other African countries. The nation has firm macroeconomic policies, efficient political structures, growing financial institutions, and its level of corruption is low in comparison with other African countries. Namibia’s currency, the Namibian dollar (NAD), is also directly linked to the South African Rand and is therefore not as much affected by currency fluctuations.
For investors seeking a share of Namibia’s incipient energy wealth, this is no time to be complacent. On 26 July nearly 50 Chinese companies attended the one-day Namibia-China Business Forum held in the Namibian capital Windhoek. Namibian Ministry of Trade and Industry Undersecretary, Edward Kamboua called upon Chinese businesses to create new joint ventures with Namibian partners in high priority areas of government interest, including oil, natural gas and mineral exploration.
Last year bilateral trade between Namibia and China was worth about $713 million, 60 times more than a decade ago. Currently 27 Chinese state-owned companies are operating in Namibia in the fields of construction, mining, engineering, information technology and financial services – but, as yet no significant hydrocarbon investments.
So, Namibia’s new energy assets remain as yet open to nimble-footed foreign investors who have the ability to move quickly. Otherwise, it seems likely that the Namibia’s energy riches will become yet another pawn on China’s global energy chessboard.
Dr Daly, a London-based expert, wrote this piece for Washington, DC-based OilPrice Intelligence.
John Daly
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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