LÜDERITZ’s – Lüderitz economy is expected to grow massively due to new developments en route, but this comes with a pressing concern of lack of affordable housing and adequate office space for businesses, particularly in the oil and gas sector. 

The mayor of Lüderitz, Phillippus Balhao, has thus called for urgent action to address these challenges, which he cautioned threaten to hinder economic development, and leave many residents and businesses without suitable accommodation.

In an interview with New Era last week, Balhao highlighted the increasing and often staggering costs associated with housing development. 

“It has become increasingly difficult to provide affordable options for ultra-low-income families, with estimates indicating it costs three times more to service land and construct a house than previously anticipated. This financial burden is making it nearly impossible to meet the needs of the community’s most vulnerable residents,” he said.  The coastal town of Lüderitz recently gained attention due to its potential role in the green hydrogen sector, and significant offshore oil and gas discoveries. The town is positioned to become a key player in Namibia’s green hydrogen ambitions, as the government identified the //Kharas region where it is located as suitable for large-scale green hydrogen production, leveraging abundant renewable energy resources, particularly
wind and solar power. 

In addition to green hydrogen, Lüderitz is also in proximity to significant oil and gas discoveries off the Namibian coast. These recent discoveries have indicated promising reserves, with companies like TotalEnergies and Shell and other multinationals actively engaged in drilling operations. 

However, challenges for Lüderitz extend beyond housing. This is because many businesses, especially those in the oil and gas industry, are struggling to find suitable office spaces, including engineering warehouses and workshops. 

While demand for these facilities remains high, supply is still limited, leaving companies to grapple with inadequate and often inefficient options.

To effectively combat the housing and office space challenges, Balhao is calling for increased support from various stakeholders. 

“We will definitely need a lot more support,” he stated, stressing the importance of collaborative efforts to develop affordable housing solutions to accommodate the growing population and meet economic demands.  Without decisive action, the housing crisis could continue to deepen, leaving many residents and businesses in a precarious situation. “It is a marathon; affordable housing is a big thing when you look at the economics of the town. Council has a lot of plans for that as well, but we will definitely need a lot more support to pull out this on time,” he added. 

Meanwhile, the company leading the charge of Namibia’s green energy ambitions, Hyphen Hydrogen Energy, stated that only during its feasibility phase will it determine what specific accommodation will be required for its employees and contractors during the construction and operational phase of the massive project.

Hyphen made it clear that government remains responsible for the long-term planning and development of Lüderitz and Aus to support the projected growth of these communities that is expected to be driven by green hydrogen, oil and gas and mining industries. Furthermore, to add salt to open wounds, the recently-released National Housing Policy 2023 report stated that only 1.7% of Namibians can afford a N$1 million house in Namibia. 

To resolve the escalating housing crisis, Urban and Rural Development minister Erastus Uutoni called on stakeholders to join hands with government, as it cannot solve the problem on its own.  He added that investors have a unique opportunity to partner with government in shaping the future of towns. 

-mndjavera@nepc.com.na