Oil wealth at risk: IPPR urges action on financial flows
The Institute for Public Policy and Research (IPPR) has raised concerns about the potential loss of national revenue in Namibia due to illicit financial flows (IFFs).
According to IPPR director Graham Hopwood, the country currently lacks the necessary mechanisms to adequately address these financial leakages.
In an engagement with the Ministry of Finance held ahead of the mid-term budget tabling expected later this month, Hopwood urged the treasury to clarify its strategy for mitigating IFFs, particularly in anticipation of a developing oil and gas sector, which is projected to potentially double Namibia's gross domestic product (GDP).
“We need to improve domestic revenue mobilisation by tackling IFFs and tax avoidance,” Hopwood said during the consultation with civil society organisations (CSOs) on the budget. “We are seeing progress in that area, but looking ahead, we need to clarify how what we hope will be a significant infusion of income from oil and gas can fund our national priorities.”
Hopwood stressed that transparency across the extractive sector is the "only real way" to ensure that Namibia avoids the "same traps and failures of other countries."
He specifically endorsed the Extractive Industry Transparency Initiative (EITI) as a valuable tool for tackling IFFs.
“We at IPPR have been pushing the EITI, which is a global standard on transparency and accountability, simply because it is the easiest and most straightforward way for us to meet certain standards, most of which we would be required to comply with anyway under the new Access to Information law once it is fully implemented,” he explained.
Hopwood also called for greater transparency regarding the Welwitschia Sovereign Wealth Fund (SWF), which was established to generate and safeguard future national wealth.
“We believe that [the EITI] will offer protection against the misuse and abuse of funds from the extractive sector in the future. Another aspect we would like to hear more about is the Welwitschia Fund," he said. "We participated in consultations around that fund three or four years ago, and we are glad that it has now been established.”
According to IPPR director Graham Hopwood, the country currently lacks the necessary mechanisms to adequately address these financial leakages.
In an engagement with the Ministry of Finance held ahead of the mid-term budget tabling expected later this month, Hopwood urged the treasury to clarify its strategy for mitigating IFFs, particularly in anticipation of a developing oil and gas sector, which is projected to potentially double Namibia's gross domestic product (GDP).
“We need to improve domestic revenue mobilisation by tackling IFFs and tax avoidance,” Hopwood said during the consultation with civil society organisations (CSOs) on the budget. “We are seeing progress in that area, but looking ahead, we need to clarify how what we hope will be a significant infusion of income from oil and gas can fund our national priorities.”
Hopwood stressed that transparency across the extractive sector is the "only real way" to ensure that Namibia avoids the "same traps and failures of other countries."
He specifically endorsed the Extractive Industry Transparency Initiative (EITI) as a valuable tool for tackling IFFs.
“We at IPPR have been pushing the EITI, which is a global standard on transparency and accountability, simply because it is the easiest and most straightforward way for us to meet certain standards, most of which we would be required to comply with anyway under the new Access to Information law once it is fully implemented,” he explained.
Hopwood also called for greater transparency regarding the Welwitschia Sovereign Wealth Fund (SWF), which was established to generate and safeguard future national wealth.
“We believe that [the EITI] will offer protection against the misuse and abuse of funds from the extractive sector in the future. Another aspect we would like to hear more about is the Welwitschia Fund," he said. "We participated in consultations around that fund three or four years ago, and we are glad that it has now been established.”
