Namibia’s strategy to inexperienced hydrogen affords invaluable steerage for South Africa because it positions itself within the rising world power panorama.
Namibia’s new progress agenda embraces the worldwide inexperienced industrialisation impulse that has been propelled by local weather consciousness and the simply transition. Central to this agenda is inexperienced hydrogen manufacturing, which harnesses Namibia’s considerable renewable power potential to draw world funding, construct local-derivatives worth chains and improve its regional affect.
Nevertheless, it isn’t the one African nation with its eyes on inexperienced hydrogen. South Africa, amongst others, has additionally sought to capitalise on the necessity for decarbonisation, to minimize its dependence on hydrocarbons and create a marketplace for export. It has made headway within the growth of a hydrogen financial system, with the cupboard greenlighting an inter-ministerial committee on it in 2024.
Namibia’s progress can provide essential coverage — and sensible — classes on the groundwork wanted to get the South African Hydrogen Society Roadmap (2021) and Inexperienced Hydrogen Commercialisation Technique (2023) working.
Match-for-purpose coverage should be a precedence
Rising industries check the adaptability and robustness of current coverage frameworks. The Namibian case has proven that they’re typically not comprehensively geared up to deal with the distinctive calls for and complexities of inexperienced hydrogen.
Developments within the business have introduced up the necessity for security laws that appropriately regulates the manufacturing, storage, transport and use of hydrogen and its derivatives and the necessity to reassess the Environmental Administration Act, Requirements Act of 2005 and the Water Sources Administration Act of 2013, amongst others, to handle the offtake parts of hydrogen and its derivatives.
It is a name to motion. The simply transition is knocking on the world’s door and it could be naive to faux that the world can cease and await the bureaucrats and politicians to resolve on coverage frameworks.
Nevertheless, coverage should evolve swiftly alongside rising industries to safeguard each the state and its traders. Namibia’s funding in growing a local-content coverage that’s match for function and helpful to locals is an effective instance of this, with a draft coverage designed particularly for oil and fuel being developed in November 2023 and talks for a inexperienced hydrogen-specific one underway.
Efficient, strategic coverage growth and implementation is crucial to making sure that international funding yields sustainable and impactful outcomes for the South African folks.
Globally oriented and FDI-intensive industries are formed by geopolitics
Namibia’s inexperienced hydrogen sector illustrates the challenges confronted by globally oriented international direct investment-dependent industries that are deeply depending on geopolitical and monetary forces.
The Dâures Inexperienced Hydrogen challenge, one among Namibia’s better-known pilot initiatives, lately sought further funding from the German authorities after investing N$232 million in growing its inexperienced hydrogen village. This reliance on exterior capital highlights the vulnerability of small economies when pursuing large-scale, capital-intensive initiatives in an ever-shifting world power market.
Nevertheless, Namibia has taken proactive steps to mitigate these dangers, notably by means of the SDG Namibia One fund — a government-led initiative aimed toward balancing international funding with home pursuits.
A key instance is Namibia’s acquisition of a 24% stake within the Hyphen Hydrogen Power challenge by means of a €23 million share settlement in December 2024. This transfer not solely ensures substantial nationwide involvement but additionally units a precedent for leveraging worldwide partnerships with out compromising home sovereignty.
Cultivating social legitimacy can’t be underestimated
There may be an inclination to imagine that if an business will be established and present tangible optimistic outcomes over time, then cultivating social legitimacy is pointless. It is a vital misunderstanding of democratic tradition and a strategic miscalculation.
The sensitivity of large-scale international funding in Africa can’t be understated as historical past has witnessed useful resource predation with out mutual profit. To additional complicate issues, inexperienced hydrogen, as an rising and extremely technical business, not like its predecessor mineral mining, presents vital challenges in comprehension and accessibility for the general public.
Social legitimacy is what stands between a challenge that’s broadly supported and protesters rallying exterior funding conferences.
To domesticate social legitimacy, an training programme should accompany, and ideally be a part of, the creation of recent industries.
When the late Namibian president Dr Hage Geingob established the Inter-Ministerial Inexperienced Hydrogen Council in 2021, what adopted was an announcement at COP27 the next yr, the signing of worldwide agreements and the launch of pilot initiatives.
Namibians began listening to the time period “inexperienced hydrogen” in every single place, with little understanding of what it was, exterior of the truth that it included photo voltaic and wind power and that tens of millions of euros would quickly be flowing into the nation. Though public lectures and academic seminars would change this round 2023, the brand new business was approached with suspicion by many.
It can’t be understated that, from a governance perspective, crucial and strong evaluation of recent industries is significant. Nevertheless, traders and business builders should be taught from historical past — together with the rise of the auto — and recognise that rising industries are sometimes perceived as missing legitimacy.
Due to this fact, proponents should work, to not solely demystify them, but additionally show their worth, reliability and necessity to the general public. This may be achieved with vertically built-in partnerships, empowering civil society with coaching and data which will be disseminated to the general public. Civil society is the popular actor on this occasion due to its well-established networks and belief throughout the neighborhood.
For South Africa, Namibia’s technique affords crucial classes, together with diversifying funding sources, fostering government-led fairness participation and balancing geopolitical dependencies with strong nationwide frameworks. These approaches are pivotal in safeguarding financial sovereignty whereas navigating the complicated calls for of worldwide inexperienced power markets.
In abstract, Namibia’s strategy to inexperienced hydrogen affords invaluable steerage for South Africa because it positions itself within the rising world power panorama.
Whereas Namibia navigates the complexities of coverage adaptation, social legitimacy and geopolitical dependencies, it underscores the significance of strategic foresight, diversification of funding sources and balancing international investments with nationwide pursuits.
For South Africa, the important thing takeaway is the necessity for agile, fit-for-purpose insurance policies and proactive engagement with native communities to make sure broad-based help.
As each nations push for a simply power transition, embracing these classes will likely be essential for attaining sustainable, inclusive and resilient inexperienced hydrogen industries.
Suzie Shefeni is a public coverage researcher and political analyst considering safety associated to power and rising applied sciences.
Vivian !Nou-/Gawaseb is a scientific researcher on governance, inexperienced hydrogen and sustainable city growth. The views expressed listed here are his personal.