Namibia: 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.

Keep up with the latest headlines on WhatsApp | LinkedIn

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.

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.