WINDHOEK: Bank of Namibia Governor Johannes !Gawaxab said enormous economic opportunities are coming for the town of Luderitz, as it is at the centre of Namibia’s oil and gas exploration and green hydrogen development.

!Gawaxab made the remarks during a public lecture at the southern harbour town on Wednesday, noting that: ‘As the energy capital of Namibia, there has never been a critical time in the history of our country to help accelerate the global transition to clean renewable energy. And Lderitz’s location is ideal because of the extensive solar and wind resources and the proximity to the ocean – both as water and a port.’

He said the oil and gas discoveries and the anticipated green hydrogen industries are expected to change the socioeconomic landscape of the town of Lderitz and drive the need for the town council to avail large sections of land for industrial and residential purposes.

This, he said will also result in a large number of people expected to migrate to Lderitz in search of opportunitie
s.

‘There is going to be a lot of demand for land, for offices and residential in Lderitz. There are going to be a lot of people that will look for education for their children,’ he added.

However, !Gawaxab warned against the negative effects of natural resources, also known as the Dutch disease.

‘When we get oil and gas, everybody is focused on oil and gas. And we forget the rest of the industries that we have. A town like Lderitz is a fishing town. Fish and fish processing is what keeps this town together. But if we find oil and gas, and we ignore our fishing industry, we are making a big mistake,’ he said.

!Gawaxab noted that some of the global oil majors that have discovered oil in the Orange Basin are expected to set up bases in Lderitz.

Currently, Shell, Total Energies, and other oil giants are appraising oil discoveries they made off the coast of Namibia, with an estimated 11 billion barrels. According to !Gawaxab, the capital expenditure for oil and gas alone will be around N.dollars 180 billion.

The public lecture was titled ‘Positioning Namibia’s oil and gas endowment: Avoiding the Dutch Disease’.

Source: The Namibia Press Agency