Namibia is moving closer to introducing legislation to regulate its construction industry, with the long-delayed Construction Industries Bill nearing submission to the Cabinet Committee on Legislation after nearly two decades of consultations and delays.
Minister of Works and Transport Veikko Nekundi said the proposed legislation was approaching the final stages of internal processing, paving the way for the establishment of a regulatory framework aimed at strengthening oversight, improving construction standards and increasing the participation of local contractors in major infrastructure projects.
“The Construction Industries Bill is nearing the end of the internal process and will soon be submitted to the Cabinet Committee on Legislation. The delay has been caused by the complexity of the construction industry and the need for continued consultations with stakeholders to ensure that the legislation adequately addresses the industry’s challenges,” Nekundi said.
The proposed legislation seeks to establish a National Construction Council responsible for regulating the industry, registering contractors and standardising construction practices.
The bill has been under discussion for nearly 20 years, with the Construction Industries Federation of Namibia (CIF) advocating for dedicated construction sector legislation since 2006.
An earlier version of the bill was tabled in Parliament around 2010 but was referred back for further work, delaying the introduction of a dedicated regulatory framework for the industry.
The proposed law has faced concerns over registration fees, annual levies and its potential impact on informal and traditional builders.
Industry stakeholders have also called for stronger oversight of construction activities, improved industry standards and greater participation by Namibian-owned contractors in public infrastructure projects.
Nekundi said the government was also advancing measures to address barriers preventing local construction companies from competing effectively for major contracts.
He confirmed that the Local Contractors Development Programme had been finalised and would be submitted to the relevant Cabinet committee for consideration.
The programme is intended to address challenges facing Namibian contractors, including limited project experience, high equipment costs, shortages of qualified personnel and procurement requirements that include a 10% guarantee.
“The Local Contractors Development Programme is intended to address these challenges and improve the capacity of Namibian contractors to compete for and participate in major projects,” Nekundi said.
The minister also raised concerns about joint venture arrangements in which Namibian contractors are included in successful bids but have limited involvement in the actual execution of construction work.
He said such arrangements prevented local companies from gaining the practical experience and technical expertise needed to undertake major projects independently.
“Our intention is to ensure that local contractors do not merely appear as partners on paper, but are actively involved in project implementation and gain the experience and capacity needed to participate independently in the construction industry,” Nekundi said.
He said the government wanted local contractors to benefit meaningfully from partnerships through active project participation and capacity development rather than serving only as nominal partners.
The proposed development programme is expected to complement the Construction Industries Bill by addressing financial, technical and operational constraints affecting local companies.
Nekundi said the two initiatives were intended to strengthen the construction industry while improving opportunities for Namibian contractors to participate in major infrastructure development.
However, the Construction Industries Bill must still undergo Cabinet consideration before being introduced in Parliament, where it will be subject to the legislative approval process.
The minister did not provide a specific timeline for the bill’s introduction in Parliament or the implementation of the Local Contractors Development Programme.
