Namibia Should Prioritize Gas Over Oil to Create Jobs and Drive Economic Growth, Says Economist
Economist Robin Sherbourne has urged Namibia to place greater emphasis on gas development, arguing it offers far more potential for job creation and local economic benefits than oil.
Speaking on BW Energy’s Kudu gas project, Sherbourne noted that while oil may generate significant government revenue, it creates limited direct employment opportunities.
In contrast, gas development can play a transformative role in fostering sustainable onshore jobs.
“BW Energy is set to resume construction this year, which could expand the Kudu 1.3 trillion cubic feet gas project.
Gas remains a key strategic resource; while oil can be exploited more quickly, gas has much greater potential to create local employment in Namibia,” Sherbourne said, citing international examples such as Qatar, where the gas industry has become a major source of local jobs.
Industry projections indicate that the first phase of Namibia’s offshore oil projects, representing a US$15 billion investment, will generate approximately 600 direct jobs.
However, Sherbourne emphasized that most skilled positions—especially on floating production storage and offloading units (FPSOs) and shuttle tankers—will require international staff.
“It will likely take a 10-year training program before Namibians can fully staff these roles. Lessons from Senegal’s offshore industry illustrate that building local capacity is a long-term process,” he added.
Sherbourne also cautioned that while oil royalties start flowing from the moment production begins, substantial tax revenues will take years to materialize.
“The government will receive royalties ranging from 1.5% to 5% from first oil, but the main revenue—from petroleum income tax at 35% of profits—only comes after the initial $15 billion investment and exploration costs are recovered.
This is projected to take about five years, meaning significant tax revenue may not arrive until around 2035,” he explained.
He concluded that Namibia’s ability to harness gas effectively, combined with transparent management of oil revenues, will determine whether the country secures lasting economic benefits from its natural resources.
