Advertise with fastmoving.co.za
 
 

Construction sector to drive Namibian growth in 2014
Construction sector to drive Namibian growth in 2014

Construction sector to drive Namibian growth in 2014

SERVICES NEWS

Economist.com.na - Mar 12th 2014, 08:47

Prospects for growth are higher on account of a construction boom, an IPPR overview of expected economic performance, released earlier last month, stated.  

The construction boom is driven by the development of new mines in particular Husab Uranium Mine, Otjikoto Gold Mine and the Tschudi copper mine, the expansion of the Walvis Bay port, the construction of the Neckertal dam, and building activities such as the Grove Mall, a mass housing project and the construction of new hotels and residential buildings.

According to the Institute for Public Policy Research (IPPR), other sectors like manufacturing, transportation and financial services will also benefit from the growth in the construction sector.

A weak Namibian dollar will increase the purchasing power of overseas tourists making Namibia an attractive destination for travellers. The agricultural sector is not expected to fair as well owing to the drought experienced in 2013. Farmers are expected to re-stock and livestock marketing and meat processing are expected to take a dip.

According to the IPPR report, the deadline of 1 October 2014 for the signing of the Economic Partnership Agreement (EPA) between the SADC EPA group and the EU is approaching. Meaningful progress was made in June and November 2013 but issues regarding certain agricultural products have not been resolved.

Namibia currently benefits from the duty–free access to the EU market and should there be no substantial progress with the final EPA, this would be placed at risk with the fish, meat, and grape industries bearing the brunt.

The IPPR report says Namibia received 37% of its total revenue from the SACU Common Revenue Pool during the current fiscal year. In addition to the fiscal benefits, Namibian exporters also enjoy duty free access to South African markets, an added SACU benefit.

South Africa contributes about 98% of the CRP funds, of which 55% is distributed amongst SACU countries. South Africa has called for changes to the formula and a gathering is on the cards; this is seen by analysts as a make-or-break meeting for the customs union.

2013 was not a good year for commodity exporting countries like Namibia the IPPR stated. Uranium and gold prices recovered slightly during January while other commodities weakened slightly.
From Economist.com.na  

Related News

Construction underway on Paledi Mall's R130m expansion
27/05/2019 - 15:22
Building contractors are on site at Paledi Mall in the rural Limpopo town of Mankweng, with construction underway on the 7000m² third phase expansion of the centre that will take it to 32,000m² in size. The project will entrench the mall’s position as a regional shopping centre for the community with several new stores, service offerings, and leisure spaces.

Construction index reflects big downturn in building materials sales
20/06/2018 - 09:36
The Afrimat Construction Index for the first quarter of 2018 shows a large downturn year on year as SA’s mining and construction industries remain mired in negative territory.

New Wernhil Market under construction - Namibia
14/03/2016 - 09:25
Construction for the upgrade of the Wernhil Market has commenced. The City of Windhoek (CoW) has identified the need for this upgrade as additional trading spaces are needed for the traders operating in the Central Business District (CBD).

SABMiller lures young entrepreneurs - Namibia
10/03/2016 - 11:14
SABMiller Namibia is promising young entrepreneurs a shot at their dreams with the chance to share in a pot of N$1 million as part of SABMiller’s Kickstart competition.

Clover pulls back in Nigeria as oil rout takes toll
02/03/2016 - 09:15
Dairy producer Clover cited solid festive season demand in its home market for an uptick in interim earnings, but warned of risks elsewhere in Africa and said it would make no more investments in Nigeria.