Simonis Storm predicts that the construction sector will be negatively impacted if the City of Windhoek’s stringent Category D water restrictions, demanding a 20% water usage cut, are implemented for a longer period.
The decision follows a significant decline in water levels at the Omatako, Von Bach, and Swakoppoort dams, which have received no inflows and currently hold a combined 22.2% capacity compared to 39.9% at the same time last year.
In response to this severe water scarcity, the City of Windhoek has imposed Category D water management restrictions on the construction sector, emphasising the need for best management practices.
“This best management practice is encouraged, such as avoiding water wastage and utilising semi-purified water for earthworks and construction. Building permits will be rescinded for violations. Reuse of water is also encouraged,” the City said.
Windhoek said at present, industries are charged a uniform tariff regardless of their water consumption levels.
However, during a Category D drought, the water usage of all industries is closely monitored.
The City of Windhoek informed the top 20 industries with the highest consumption to adopt water-saving measures to reduce their usage.
“Industries are currently charged one tariff regardless of the volume of water consumed. However, during a Category D drought, the water consumption of all industries is monitored. The top 20 highest consumers are informed that they must implement water-saving measures to reduce consumption,” the City said.
Windhoek said if the measures are not implemented within the specified timeframe, it will install smart water meters with timers.
“If these measures are not implemented within a specified period, the City of Windhoek will install smart water meters with either a timer or remote control to shut down water after business hours, at the customer’s expense,” CoW said.
The City of Windhoek further cautioned that building permits will be revoked for violations, and water reuse is encouraged.
The Category D water scarcity restrictions will last indefinitely, depending on the duration of the drought.
“Building permits will be rescinded for violations. Reuse of water is also encouraged. The duration of the category D water scarcity restrictions is indefinite depending on how long the drought lasts,” CoW said.
Simonis Storms highlighted that if the restrictions extend, the impact could become significantly more severe.
“If the restrictions last longer, the consequences could be much more severe. Prolonged restrictions could lead to project cancellations, delays in new developments, and a general slowdown in construction activity,” Simonis Storm said.
Simonis Storm emphasised this situation could cause property prices to fall, particularly for developments that are heavily reliant on water or are still in the planning or construction phases.
The research firm also highlighted that a slowdown in construction activity might lead to job losses, especially affecting lower-skilled workers.
“This, in turn, could depress property prices, particularly for developments that rely heavily on water or are still in the planning or construction stages. We could see a reduction in construction activity, leading to job losses, particularly among lower-skilled workers,” Simonis Storm said.
