NAMIBIA: VIABILITY OF OFFSHORE OIL DISCOVERY DEBATED IN LIGHT OF GREEN ENERGY TRANSITION

   Fri, 23 September 2022

A significant offshore oil discovery has the potential to improve Namibia’s longer term economic outlook. However, the long-time incumbent SWAPO administration has reacted with caution, highlighting the possible pitfalls of investing in oil production during a global green energy transition. As such, in the short-term the government is likely to continue prioritising other sectors, including agriculture, mining, and renewable energy. Meanwhile, further debt will need to be issued to support government funding, raising sustainability concerns over mounting domestic borrowing.