For the past three years, Namibia construction sector has witness a rapid decline in the sector. This is as a result of project not completed on time and the banks having difficulty to extend credit which has seriously affected the sector.
The construction sector has been a major driver of growth in the country but due to its slow pace, it has seriously affected the country GDP. A research in 2017, reported that 231 building plans having been approved in the first two month but only 48 were completed which is the lowest number in the last seven years.
As per a report by the Namibia Economist in 2021, the construction sector declined by 11.8% during 2020 due to the Coronavirus pandemic as subsidizing was diverted to Covid-19 related use which is reasonable as the occasion really changed the world.
However in 2021, Nambia Statistics Agency (NSA), reported that the building plans completed index posted a decilined growth of 11.9% year on year. This decline in normal value was attributed to construction activities for Windhoek, Walvis Bay and Ongwediva respectively.
This decline continued as in the third quarer of the year, the construction sector recorded a massive decline of 43.7% in real value compare to a reduction recorded in the quarer of 2020. According to to the report posted by NSA, the poor performace of the sector is associated with the banking subsector that recorded a decline of 19.2% from a reduction of 5.9% recorded in the corresponding quarter of 2020.
The cracks has been witness with the steady decline in the sector however, the country can still recover but needs to ensure the right people are installed to help tackle this challenges facing the nation.
SOURCE: NEW ERA