Mortgaging Our Future: Why We Must Not Borrow Against Oil That Does Not Yet Exist

Six weeks ago, the Governor of the Bank of Namibia warned in plain terms against borrowing in the name of oil, noting that public debt is already approaching dangerous levels. Yesterday, the National Planning Commission Director-General proposed doing the exact opposite, casually floating the idea of borrowing against future oil revenues to finance current spending. 

This is not a minor disagreement, it is a fundamental contradiction at the highest levels of governance. While officials indulge in political poetry about a trillion-dollar economy, major offshore projects remain years away from guaranteed production. Borrowing against uncertain future resources is short-termism at its worst, a well-known pattern across the continent that leaves citizens carrying the burden of high interest rates and heavy debt.

The Independent Patriots for Change (IPC) stands firm alongside sound institutional advice: no oil-backed loans until concrete projects reach final investment decisions, clear petroleum revenue laws are passed, and strict fiscal controls are restored. Development is not delayed by a lack of oil-backed loans, it is delayed by poor expenditure control and poor governance.  

#IPC #FiscalDiscipline #ProtectOurFuture #NamibiaIsNotForSale