Namibia’s oil boom draws global investors

The Africa Finance Corporation (AFC) has said that converting recent oil and gas discoveries across the continent into lasting prosperity will depend on institutions, governance and policy certainty, rather than geological reserves alone.

In a report released on Thursday, the pan-African development finance institution highlighted the growing wave of hydrocarbon finds in countries including Namibia, Mozambique, Angola, Senegal, Mauritania, Uganda and Ghana.

The AFC noted that Namibia has attracted significant investment from international energy companies through regulatory clarity and institutional stability. It contrasted this with South Africa, where the AFC said slower development has been seen despite considerable offshore potential, as policymakers, regulators and industry stakeholders debate environmental protection, legislative reform and investment certainty.

The report said energy companies evaluating African opportunities compare them with jurisdictions such as Guyana, Brazil and Norway. Investment decisions, according to the AFC, depend on regulatory certainty, governance standards, fiscal stability and infrastructure development.

Governments across the continent face the same challenge of attracting investment while ensuring natural wealth delivers lasting benefits, the AFC said. It noted that the African Continental Free Trade Area could enable regional integration, strengthen supply chains and create jobs.

The AFC emphasised that oil and gas revenues should be used to finance economic diversification, renewable energy, education and healthcare.

SOURCE: Reuters