Any driver coming from Windhoek on their way to the coast will tell you the 32km stretch of road between Karibib and Usakos is a breeze and usually doesn’t take very long because it’s relatively short, compared to the other sections of the journey. This week, the rehabilitation of this short stretch of road has drawn the ire of many Namibians, specifically those in the road construction sphere, because all the seven companies short-listed for the job are Chinese.
In a bid to justify this short-listing, the Roads Authority (RA) pledged that it will continue to empower local contractors to build local capacity and contribute to efforts to create local capacity, employment opportunities and alleviate poverty. The RA even emphasised an agreement with the project’s financer, the German development bank, to separate the project into four sections to make it easier to be executed by Namibian-owned companies, thereby ensuring that locals get at least 25% of the total amount. This, the RA said, would create 500 employment opportunities for Namibians. Now, there is no doubt of the strong relations between Namibia and China. There is also no doubt the latter has been and continues to be instrumental in Namibia’s development and industrialisation aspirations. This cordial relationship with the world’s second-largest economy officially commenced at Namibia’s Independence in 1990, but dates back decades earlier to the 1960s when China provided much-needed support for the liberation struggle.
However, after 30-plus years since receiving official assistance from this global economic powerhouse, we as Namibians have to reflect on this relationship, and take stock of exactly how much skills transfer has taken place in the construction and other business interactions. After more than 30 years, these types of construction projects should now be spearheaded by Namibian companies. If we insist on involving Chinese companies, then it is high time they get 25% of the cake. This is the only way we will ensure real economic growth to make a meaningful dent on our sky-high unemployment and persistent inequality. It is understandable that Chinese companies are better at what they do. A McKinsey study showed that Chinese contractors command around 50% of Africa’s construction market. This is no surprise, given the massive amount of infrastructure finance China offers to African nations. It is common knowledge that China has prioritised infrastructure assistance through commercial and concessional loans to Africa, specifically for projects that involve road construction and renovation, railways, airports and harbours.
Due to their sheer size and experience, Chinese companies offer more affordable prices, are more efficient, and have been reported to tender about 40% less for major projects.
But Namibian leaders have to ensure construction project requirements are tailor-made for Namibian companies to access a bigger slice of the cake. The opposite is currently the case, as with the Karibib-Usakos road tender, where financial and technical prequalification requirements are so steep that they deliberately excluded Namibian participation.
We cannot continue with this sad state of affairs if we want to create decent jobs and eradicate poverty. We cannot just wash our hands, shift the blame, and claim these requirements are what the funders want. If that is the case, then we should look for the money elsewhere so that an industry as significant as construction can play a real role to become an effective catalyst to stimulate other sectors and essentially uplift the Namibian economy.