By: Loise Shiimi
According to the latest report from the Bank of Namibia, activity in the construction sector decreased year-on-year during the third quarter, primarily due to a contraction in private construction work.
The report indicated that the real value of building plans completed, particularly in key municipal jurisdictions, declined by 35.7% compared to the previous year. This decline was most notable in new industrial properties completed in Windhoek, Swakopmund, and Walvis Bay.
A similar trend was observed in new industrial properties in Windhoek and Walvis Bay.
The report attributed this decline to reduced government spending on public construction work programs, particularly due to a scaling back in the renovation of properties and infrastructure during the same period.
Contrarily, an increase was noted in the approval of new residential buildings, which rose by 34.3% in Windhoek, Swakopmund, and Walvis Bay.
Risto Shipanga, a real estate agent, shared insights with Eagle FM regarding the contributing factors to this decline. He pointed out that several municipalities have a number of unserviced plots, which hinders the approval of construction plans.
“There are delays in the approval of plans, leading to many being finalised in October, November, and December. Additionally, fluctuating interest rates leave individuals uncertain about investing in homes,” he indicated.
He added that the third quarter of the year tends to be a time when people prepare for the festive season, which may also have contributed to the decline, as many plans were put on hold due to holiday activities.
In most cases, plans in municipalities undergo inspections to determine approval. Shipanga shared that issues such as the absence of essential infrastructure and individuals not following up on plans after submission can prohibit approval.
Regarding the construction sector’s contribution to the economy, Shipanga emphasised that it creates numerous opportunities for Namibians.
“This sector generates jobs for those involved in brick-making, transporting building materials, and plumbing. When building plans are approved, it leads to increased opportunities,” he said.
Shipanga affirmed that a decline in new industrial properties does not signify a failure in the sector. Instead, it guides stakeholders to explore better ways to improve it.
“There is a need for partnerships among financial institutions, contractors, and the government to collaborate and enhance this sector,” he stated.
Adding onto the opportunities within the sector, he mentioned that schools, hospitals, stores, and roads are all products of construction.
“As our population grows, everyone needs a place to live. If you observe towns, you will see contractors actively building; these are opportunities. Some people seek rental properties, while others want renovations; all of these present chances we need to seize,” he said.
He concluded by urging individuals in the sector to work collaboratively rather than independently, noting that cooperation and the sharing of ideas would only enhance overall outcomes.
