China isn’t waiting for Namibia to become an oil producer. It’s getting in early.
During a state visit to Beijing this week, Namibia and China signed eight cooperation agreements covering energy, critical minerals, infrastructure, agriculture, and economic development, as China attempts to secure a front-row seat to what could become Africa’s next major energy story.
Namibia’s first female president, Netumbo Nandi-Ndaitwah, spent the week courting investment as her government looks to diversify an economy still grappling with high unemployment. China, meanwhile, appears perfectly happy to help, as long as it comes with access to the country’s growing list of strategic resources.
Shell and TotalEnergies have already discovered an estimated 2.6 billion barrels of crude offshore Namibia, with production expected to begin before the end of this decade. If development stays on track, Namibia could become Africa’s fourth-largest oil producer by 2030.
The two countries also agreed to deepen cooperation on uranium, lithium, and rare earth elements. These minerals are just as strategically valuable as crude oil. The agreement also emphasizes local processing and technology transfer, which is a growing trend among African resource producers that are increasingly reluctant to simply ship raw materials overseas.
According to data cited by Reuters, Chinese companies have invested roughly $4.2 billion in Namibia so far, with nearly all of it flowing into the country’s metals sector. China also buys about a quarter of Namibia’s exports, and uranium alone accounts for roughly 85% of those shipments.
Securing access to Namibia’s future oil production and strengthening its hold on critical minerals is a logical extension of China’s long-running Africa strategy. And China’s pocketbook is a great way for Namibia to turn its promising geology into economic growth.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com
- US Crude Oil, Product Inventories Fall Even As Hormuz Traffic Begins to Flow
- Trump Targets California Again In SpaceX Feud
- Oil Prices Surge 6% Even as Tankers Push Through Hormuz
