Promoting News Business and Events in and around Windhoek
Namibia Construction Contractors Serving Windhoek and Beyond
Insights into local contractor capacity and what CIF Namibia says about procurement barriers
L. Hansen

L. Hansen

Oct 28, 2026

22 Comments

A sharp debate is reshaping Namibia's construction landscape, and the stakes couldn't be higher for the firms building the country's roads, bridges, and public infrastructure from Windhoek to the coast.

 

At the centre of the storm is a remark attributed to Minister of Works and Transport Veikko Nekundi, who reportedly suggested that only three or four local contractors possess the capacity to take on major construction projects - and that even their capacity remains limited.

 

The Construction Industries Federation of Namibia has hit back hard, calling that assessment a damaging generalisation that the industry cannot afford to let stand unchallenged.

 

The federation's pushback goes far beyond a simple disagreement over numbers.

 

According to the federation, Namibia construction contractors operating at an established level bring genuine technical expertise, deep project experience, and real resources to the table - credentials that deserve recognition rather than dismissal.

 

The core argument from CIF Namibia is a crucial one: financial qualification and technical competence are not the same thing, and conflating the two produces a distorted picture of local contractor capacity.

 

Turnover thresholds, bank guarantees, and historical financing requirements can disqualify businesses that are fully capable of delivering quality work.

 

After years of economic recession and a prolonged drought in public project spending, suppressed turnover figures reflect a shortage of awarded contracts - not a shortage of skill.

 

Using those depressed numbers to bar firms from future bidding only deepens the disadvantage, creating a cycle that serves neither local businesses nor the Namibian public.

 

Technical criteria embedded in tenders have also drawn scrutiny from the federation, which flagged a road rehabilitation tender in the Karibib-Usakos corridor as a case study in exclusionary specifications.

 

Requirements demanding work volumes or methods never previously commissioned in the Namibian market set a bar that capable contractors simply cannot clear - not because they lack ability, but because the benchmark is disconnected from local reality.

 

This pattern has grown more visible across multiple procurement entities, with the federation warning that current infrastructure models risk concentrating opportunity in the hands of firms with foreign-linked balance sheets or access to cheaper external capital.

 

The consequence is a construction sector where the lowest tender price crowds out value, quality, and long-term capacity building.

 

Beyond procurement rules, commercial disincentives are also quietly shrinking the bidding pool.

 

Preparing a major tender is a costly exercise, and when government payment delays inflate working capital pressure, many capable contractors choose not to participate at all - a rational response to an environment that undervalues reliability.

 

The federation has also been explicit about tenderpreneurism and fronting arrangements, insisting that a nominal local partner with minimal project involvement cannot be equated with a genuine Namibian contractor contributing real expertise and skills transfer.

 

Broad ministerial statements that cast doubt on local contractor capacity risk justifying the continued preference for foreign firms - an outcome that would set back Namibia's construction sector for years.

 

With a major industry forum on the horizon designed to connect procurement entities directly with local contractors and small businesses, the moment to align public statements with procurement reform has never been more urgent.

22 Comments

Join the conversation

  • HA
    Hilma Amadhila· Oct 30, 10:28 PM

    Really hope this forum actually leads somewhere. Windhoek to the coast we need proper infrastructure and we need local companies building it.

  • O
    observer99_NM· Oct 30, 5:26 PM

    The fronting problem is worse than people admit. Everyone knows which companies do it but nothing happens to them.

  • DM
    Dave M._Khomas· Oct 30, 3:37 PM

    Preparing a tender bid is genuinely expensive. If you are already cash strapped from waiting on government payments it becomes irrational to even try. That math does not work.

  • AP
    Annelize P.· Oct 30, 2:29 PM

    Good on CIF for pushing back publicly. Too often industry bodies stay quiet and nothing changes.

  • C
    coastalcontractor· Oct 30, 1:24 PM

    From the coast side we see the same thing. Foreign linked companies clean up the big coastal infrastructure projects and local firms get the scraps.

  • EN
    Erastus Nghifikepunye· Oct 30, 1:02 AM

    I sat through a tender briefing last year where the experience requirements referenced project types that have never even been done in this country. How is anyone supposed to meet that bar?

  • M
    Miriam_T· Oct 29, 10:48 PM

    Skills transfer is the part that gets ignored every time a foreign firm wins. Those jobs and that knowledge should be staying in Namibia.

  • WD
    Willem D.· Oct 29, 10:28 PM

    Minister Nekundi should clarify exactly what he said. If it was taken out of context then say so. If not then the CIF response stands.

  • I
    InfraWatch· Oct 29, 5:32 PM

    The cycle described here is real. No contracts means low turnover, low turnover means disqualification, disqualification means no contracts. Somebody has to break it.

  • L
    lucia_usakos· Oct 29, 4:48 PM

    Living near that Karibib-Usakos corridor I would love to know why local companies cannot qualify for work on a road they literally drive on every day.

  • G
    GertBrandt_NM· Oct 29, 4:36 PM

    Bank guarantee requirements alone knock out so many capable smaller firms. That needs to change before anything else does.

  • NK
    Ndapanda K.· Oct 28, 8:44 AM

    Lowest price always wins and then the road cracks in two years. We all know how this ends.

  • FM
    Fabian Mouton· Oct 28, 8:14 AM

    The forum they mention at the end sounds promising. But we have had forums before. What matters is whether procurement rules actually change afterwards.

  • S
    skeptical_sam_N· Oct 28, 7:59 AM

    Not going to pretend every local contractor is ready for a billion dollar project. Some of the minister's concern might be valid even if the way he said it was clumsy.

  • RJ
    Rina Jacobs· Oct 28, 7:12 AM

    I worked for a local construction firm for eight years. The expertise is there. What is missing is a fair chance to show it.

  • N
    NamibiaBuilds· Oct 28, 6:28 AM

    Tenderpreneurism is the real cancer here. A local name on a contract while a foreign company does all the work is not localisation at all.

  • T
    Tomas_Windhoek· Oct 28, 5:51 AM

    Foreign firms with cheaper capital will always win on price. But who builds the local knowledge base? Who trains the next generation of Namibian engineers?

  • MS
    Magda Shifeta· Oct 28, 5:44 AM

    CIF is right. Low turnover after years of drought in public contracts does not mean low skill. Those are completely different things.

  • PV
    Petrus V.· Oct 28, 5:34 AM

    Government delays payment for months and then wonders why contractors stop bidding. Who can absorb that kind of cash pressure?

  • R
    road_watcher· Oct 28, 3:41 AM

    The Karibib-Usakos road has needed attention for years. Now when there is finally talk of rehabilitation they want to make it impossible for local companies to even bid. Something is wrong there.

  • SH
    Selma Hamutenya· Oct 28, 3:05 AM

    Three or four contractors? That is a serious underestimation. I know personally of at least ten firms that could handle major road projects without any issues.

  • JN
    Johan N.· Oct 28, 2:35 AM

    The minister should come visit actual sites and see what local contractors can do before making those kinds of statements.

4 people are commenting…
The Windhoek Spotlight

Category

Link Name

© 2026 The Windhoek Spotlight.


The newsletter, working to support and promote businesses and events in and around Windhoek.

© 2026 The Windhoek Spotlight.

This publication sponsored by