Chamwe Kaira
Despite delays in major projects and limited public spending, Namibia’s construction sector has begun to show signs of recovery in 2026.
A report by Simonis Storm indicates that activity improved after a slow start to the year.
The report says structural challenges continue to affect the sector. These include delays in green hydrogen and oil and gas projects, limited fiscal space and shortages of serviced land.
In Windhoek, building activity increased in February.
A total of 163 building plans were approved, up from 109 in January. This is a 49.5% increase.
Compared to February 2025, approvals rose by 7.9%.
The value of approved plans increased from N$101.8 million to N$145.8 million.
Figures for the first two months of the year also show growth.
Windhoek recorded 272 approved plans, up from 233 during the same period in 2025.
The value of approvals rose to N$247.6 million, a 35.2% increase.
Building completions in the capital also improved on a monthly basis.
Completions increased from 10 in January to 21 in February.
The value of completed works rose from N$2.9 million to N$21.8 million.
However, on an annual basis, completions declined by 30%.
Most completed projects remain small additions and alterations.
At the coast, Swakopmund recorded a strong increase in activity.
Building plan approvals rose from 20 in January to 132 in February.
This is a 560% increase.
Compared to February 2025, approvals increased by 73.7%.
The value of approved plans reached N$91 million.
Completions also increased from 14 to 30.
Year-to-date figures show 152 approved plans valued at N$120.5 million.
This reflects a 46.2% increase in volume and a 66.7% increase in value.
The coastal market is supported by migration, tourism investment and foreign buyers.
The construction sector is expected to grow between 4% and 6% in 2026.
Public investment is expected to drive activity.
Projects in water, energy and transport are expected to support growth.
These include the Erongo desalination project by NamWater and Swakop Uranium.
In the energy sector, NamPower is developing solar, transmission and substation projects.
Mining projects are also supporting construction demand.
These include Etango by Bannerman Energy, Tumas by Deep Yellow and Twin Hills by Osino Resources.
Future growth will depend on investment decisions in oil, gas and green hydrogen.
If these projects proceed, construction activity could increase, especially in coastal towns such as Lüderitz and Walvis Bay.
