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Opinion – Pothole economy: Filling people’s pockets

Opinion – Pothole economy: Filling people’s pockets

With the blessed rains we have received since the beginning of the year, we have been fortunate as Namibians. 

The entire country has been generously soaked, and not a moment too soon. 

Our roads are the only part of our nation that did not benefit from the rain. 

Namibia boasts some of Africa’s best roads infrastructure, but it was no match for the relentless rains. 

Dodging potholes has become a national pastime. Some potholes are so large that you would expect a bridge to cross them.

These potholes present an immediate opportunity for Namibia and its citizens. 

The potholes do not just need to be filled – they require permanent solutions. 

Local authorities across Namibia have requested N$500 million from the Road Fund Administration (RFA) to repair roads damaged by the recent rainfall. 

RFA’s CEO Ali Ipinge stated that local authorities have applied for half-a-billion dollars to fix these damaged roads, injecting an additional N$500 million into local economies. 

Imagine what that would mean for the people.

As an economist with various roles throughout my career, I have always strongly advocated for stimulating the economy from a grassroots level – or in this case, from a pothole level and up. 

You cannot focus on large-scale projects in a country if individuals at every level are not employed and cannot make a living.

I examine economic theory and its real-world application. 

In this instance, Keynesian economics is particularly relevant. 

Developed by John Maynard Keynes, it emphasises the role of government intervention in stabilising the economy. 

It suggests that during economic downturns, governments should increase spending and reduce taxes to boost demand and create jobs. 

If we can temporarily increase spending by paying local unemployed Namibians to fill the potholes on a local level, it will instantly catalyse the economy.

In Windhoek, we have seen this in action when some enterprising locals began filling potholes using buckets and spades. 

They received tips from grateful drivers, who were relieved not to navigate the canyon-like holes. 

A few days later, the same resourceful young men returned with an old wheelbarrow, filling in longer stretches of road riddled with potholes. 

The money they earned was immediately reinvested into the local economy, as they purchased food, consumables and a wheelbarrow.

If we are clever, we will recruit these young men, pay them from the N$500 million allocated for pothole repairs, and teach them how to fix the roads properly and permanently. 

The return on investment will be substantial, demonstrating true empowerment at a grassroots or ‘pothole’ level across the nation.

In Namibia, we typically award these contracts to a single contractor with significant overheads. 

However, here we can engage individuals at a truly local level. 

This approach places money directly into the hands of those who need it most, who will promptly spend it within their local communities. Potholes are prevalent throughout the country, presenting an opportunity to uplift every local economy.

* Dr John Steytler is an economist.