By Helle Binzer
Plans for a new U.S. defence area in Narsarsuaq have sparked debate. However, for Greenland’s business community, the issue is not only about geopolitics and security. It is also about how the investments and activities that follow can create lasting value for local communities and Greenlandic businesses.
Under the new agreement, the United States will be given the opportunity to establish additional defence areas at Narsarsuaq and Mestersvig. At the same time, the agreement includes a provision stating that U.S. authorities should, to the greatest extent possible, use Greenlandic suppliers and companies for the establishment, operation, maintenance and servicing of the defence areas.
For this very reason, it is important that the discussion is not solely about whether there will be an increased U.S. presence, but also about how Greenland can ensure that the projects create local jobs, new skills and long-term business development.
Greenland Business Association is very positive about the agreement.
“Article 4(4) is important because it recognises that local businesses must be part of the value chain. If the upcoming investments are to create real value for Greenland, jobs, skills development and business opportunities must be anchored locally. This is an ambition that the business community is ready to contribute to,” says Aqqaluk Abelsen, Regional Chair for Kujalleq at Greenland Business Association.
There is similar optimism from the locally based company 60° North Greenland, which provides contracting, logistics and mining services in Greenland. The company is headed by Malik Vahl Rasmussen and actively works to strengthen cooperation and value creation within Greenland’s business community.
“Through our work on mining projects in South Greenland, we have seen an impressive level of engagement from the local business community. Many companies have come forward with capacity, expertise and a willingness to collaborate. This shows me that Greenland is in a stronger position than many might think. I therefore also view the opportunities that the new agreement could create positively. When new projects come to Greenland, there is a business community ready to take responsibility and contribute to the solutions,” says Malik Vahl Rasmussen, CEO of 60° North Greenland ApS.
Narsarsuaq still has relatively extensive infrastructure and housing compared with the settlement’s current size. Following the transition resulting from the new airport in Qaqortoq, Narsarsuaq has been focusing on new opportunities. New investments and activities could therefore contribute to renewed development, employment and opportunities for people to settle in the area.
The new agreement between Greenland, Denmark and the United States opens the door to these opportunities.
