Emulate Norway’s Oil Transparency

President Netumbo Nandi-Ndaitwah deserves her flowers for using Norway to benchmark Namibia’s oil sector instead of leaning toward corruption-ridden countries where citizens have seen little or no benefit from oil wealth.

“At my request, the government of Norway has agreed to provide us with technical support,” she told the parliament this week, urging lawmakers to pass the petroleum amendment bill during her second state of the nation address.

The president’s Upstream Petroleum Unit has undertaken bench-marking visits to Guyana, Angola, Norway and Algeria.

Although there are valid questions about learning from Angola’s oil industry given its gasosa (cooldrink or bribery) culture, the president deserves credit for taking a hard look at the Norwegian approach.

The Scandinavian country is globally recognised for the way it manages its oil wealth, building a sovereign wealth fund and avoiding the resource curse.

However, importing Norwegian expertise should not be seen as a magic broom. When push comes to shove, the true test will lie in Namibia’s political will, transparency and parliamentary oversight.

We are already moving in the wrong direction.

Access to information on petroleum blocks has become increasingly secretive since the petroleum department shifted to the Presidency.

In the past, Namibian law allowed the public and journalists to inspect and obtain details on petroleum licences. We urge the president to restore this access to honour her pledge of transparency.

Researchers and journalists can help detect corruption and build public trust in how these resources are managed.

Joining the Extractive Industries Transparency Initiative would add another layer of accountability.

If we merely adopt the rhetoric of the Nordic model without the accompanying accountability, we risk repeating regional failures closer to home.

In 2007, former Mozambican president Armando Guebuza travelled to Norway on a state visit.

He said the Nordic country’s experience would help Mozambique “avoid the errors committed by other countries” in the management of natural resources.

The country had discovered vast offshore natural gas reserves in the Rovuma Basin and was poised to become a global leader in liquefied natural gas exports.

Six years later, Mozambican officials continued their rhetoric of working with Norway.

Maputo and Oslo signed agreements to secure Norwegian technical expertise.

However, instead of waiting for the gas to be extracted, the Mozambique government jumped the gun and used the promise of future revenue to justify massive borrowing.

Mozambique ended up being rocked by a massive corruption scandal known as the ‘Tuna Bonds’ scandal – US$2 billion (about N$33 billion) was secretly borrowed from international banks without parliamentary approval.

The scandal resulted in the arrest and jailing of the former president’s son, Ndambi Guebuza, alongside several high-ranking government officials, including the spy chief.

A judge in that case said the Mozambican president’s son took a US$33-million (N$543-million) bribe to satisfy his “desire for luxury” and bought a N$10-million mansion in South Africa.

Namibia must learn from this scandal and avoid mortgaging our future by borrowing against future oil wealth to fund current needs.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.