Namibia is expected to earn between N$60 and N$95 billion in taxes per year, in addition to royalties from its estimated 6,5 billion barrels of oil.

The contribution to the country's gross domestic product (GDP) is expected to increase by more than N$600 million, thanks to the envisaged oil industry, by the year 2040.

President Hage Geingob shared this and other economic prospects for the country in his New Year's message.

The Head of State themed 2023 as the "Year of Revival," with a call on Namibians to look to the future with renewed hope and optimism.

"We say goodbye to 2022, the Year of Reimaging, and say welcome to 2023, the Year of Revival, which is about reigniting the strength of a resurgent nation, a nation that looks into the future with renewed hope and optimism. It is time for our collective revival to shape our future, one step at a time, as we march towards shared prosperity."

The discovery of oil and gas, the development of green hydrogen, and a rebound in the tourism sector are all prospects that President Geingob says bode well for the acceleration of economic recovery.

"According to international experts, Namibia stands to receive N$500 billion in Foregin Direct Investment in this regard. Furthermore, with an estimated production of 6.5 billion barrels of oil, the discoveries could generate between N$60 and N$95 billion in taxes and royalties for Namibia each year. It is estimated that the two oil projects will generate over 3,600 jobs at the peak of production and double Namibia's GDP by 2040 to about N$636 billion. Of course, further drilling work and evaluations are ongoing to determine the precise commercial viability of these finds. Out.
Namibia's economy is further projected to grow at 5.6% in the second quarter of 2023.

"Agriculture, mining, and ICT are the main drivers of this growth, and given the fact that our tourism sector is experiencing a post-COVID-19 rebound, there is room for more optimism in the future. With the acquisition of the world's most advanced diamond recovery vessel, the Benguela Gem, by Debmarine Namibia at a cost of US$420 million, new jobs were created, and the diamond sector is likely to see an annual increase of 45%. Our experts also tell us that SACU revenues in 2023 will show marked improvement."

As Namibians usher in the new year, Dr Geingob urged them to do so responsibly and in a spirit of love, compassion, and understanding.

Photo Credits
Blanche Goreses