• Market Watch

The need to regulate the construction sector

- 2022-10-11 00:00:00

Since 2006 the Construction Industries Federation of Namibia (CIF) has been lobbying the Namibian government that a council for the construction sector will be established to regulate the industry. In 2010 the Namibian Planning and Construction Bill was tabled in parliament but was rejected as it required some more work.
It remains the CIF’s hope that the importance of creating a council for the sake of regulating the industry will be truly recognised by political leaders and legislators, as a result of continuous attempts of the CIF to emphasise and highlight the urgency.
Failure to regulate the industry through the establishment of a regulatory council has wide-ranging repercussions. It leads to inefficient utilisation of public funds; lack of control of quality in the industry; lack of any means to shape the Namibian construction sector in the interest of bona fide Namibian-owned businesses and the Namibian economy at large.
Ministers of Works and Transport in office since 2005, had been lobbied in the process, including Joel Kaapanda, Helmut Angula, Erkki Nghimtina, Alpheus !Naruseb and now Minister John Mutorwa. Although currently there is progress, the CIF is concerned that should there again be a change of leadership of the works and transport ministry in two years’ time, one would again have to start at the beginning. Generally, being reliant on the support of their technical teams within the authority, it takes time for a newly appointed ministers to get acquainted with pending, albeit pressing matters. For the works and transport portfolio, it would include the urgency and importance of regulating the industry. Potentially that would be the case if the process is such that the current bill for the establishment of a Namibian construction council will not be tabled in Parliament soon.
Sankwasa James Sankwasa, the previous deputy minister of works and transport, had made very strong efforts to support the industry, and together with the CIF, was committed to facilitate effective stakeholder engagements, to ensure that extensive deliberations took place before the bill was to be re-tabled in parliament.
The current minister, Honourable John Mutorwa, is also keen to support optimal regulation of the construction sector, as the current draft bill has already been submitted by him to Cabinet early 2022, and was also discussed by the Cabinet Committee for Legislation. It required further work by the legal drafters - which apparently is now completed - before it again will be reviewed by the Cabinet Committee for Legislation, headed up by the Honourable Minister, Yvonne Dauseb. The hope is that after that, the bill is ready for tabling in Parliament.
Process
Bärbel Kirchner, chief executive officer of the CIF says: “It has been a frustratingly lengthy process, and we are hopeful that we now see some definite steps in the right direction. One cannot help to have become somewhat disillusioned when one knows this is the one piece of legislation that can make all the difference in our industry, and could have done so for many years in the past.
“We have not only engaged Honourable Mr Mutorwa, but also other members of the Cabinet, including the Right Honourable Prime Minister, Dr Saara Kuugongelwa- Amadhila. In fact, we have hoped to have another meeting this year to once again press upon what difference it would make for our industry, our economy, our country.
“Of course, the CIF regards this matter as so important so that we also went right to the top and had requested an audience with His Excellency, Dr Hage Geingob, who referred the CIF to the line minister, Honourable Mr John Mutorwa.
“Truly, we believe that regulating our industry rightly must be on top of the agenda - at the very least, of not so little importance, as it has been in the past – it should not have to take more than a decade to get the most critical matter for our industry resolved. The question is indeed why do we regulate something – or for that matter – not regulate something. Surely it must be in the interest of our people, to protect our national interests.”
It appeared that the value and the urgency of establishing a construction council had been recognised by the top leadership in 2018 when the Right Honourable Prime Minister had mentioned in Parliament in 2018 that a council would be established. This was in response to personally addressed letters to members of parliament by the CIF and to a motion by a member of an opposition party that a parliamentary committee should be established in order to investigate the extent of foreign involvement, which then was turned down.
In the year following, in 2019, developments looked even more promising when at the Namibia Investment Summit organised by the High Level Panel of the Economy, it had been agreed by the government that a construction council would be established before the end of the financial year, i.e. by 28 February 2020.
Progress
Bärbel Kirchner, chief executive officer of the CIF: “We are delighted that now there seems to be progress. If not mistaken, all our neighbouring countries have a regulatory body that monitors and polices the industry.
“The mandate of the CIF, a member-based organisation does not include the policing the industry with the exception of its own members, who have to adhere to a Code of Conduct. Therefore, if the enactment of a statutory regulating council does not materialise, one should not be surprised if there are Government projects that are not completed and with poor quality and below expected standards; or be surprised that tenderpreneurs remain to be involved. One should also not be surprised that size of projects are of such a nature that bona fide Namibian-owned contractors cannot compete based on financial pre-qualification criteria. And surely, one should then not be surprised that many businesses have closed down or close down in our industry and that so many jobs continue to be lost.”
Being very hopeful that the current bill for the establishment of the construction council will find its way again to the Cabinet Committee for Legislation and then to Parliament, Bärbel Kirchner said: “Let’s be frank – we all know that we can regulate an industry. It has happened before in other sectors. Right? And would you go to a medical doctor that is not registered with a council? We therefore can only appeal to our political leaders and legislators to act soon and to regulate our industry, otherwise there will be zero left of our own industry and we will become eventually solely dependent on foreign capacities.
“Regulating the construction sector will help Namibia to address poverty and unemployment. It will resolve some of the issues relating to poor public health and educational infrastructure. Considering government policies, surely our appeal to have our industry regulated should not require any more convincing. With a regulatory council in place we will see the start of change of our construction sector in the interest of us all”.