Federation blasts RCC model for sidelining Namibian contractors

The Construction Industries Federation of Namibia (CIF) has cautioned that the current project model used by the Roads Contractor Company (RCC) could further marginalise local contractors, despite government’s stated push to increase Namibian participation in the sector.

The warning follows a recent expression of interest (EOI) issued by RCC, which the federation says introduces structural barriers favouring well-capitalised, particularly foreign-linked, firms.

The CIF’s criticism echoes recent remarks by works and transport minister Veikko Nekundi, who admitted that government has limited control over foreign-led construction projects, according to a recent Namibian Sun report.

This reality, the federation argues, is being reinforced by current policy approaches.

At the centre of the dispute is the EOI’s categorisation system, which CIF says fails to reflect the realities of Namibia’s construction industry.

While contractors may meet the technical requirements for high-tier projects, they are effectively excluded by financial thresholds deemed unrealistic for most local firms.

“The issue is not capability, but access,” CIF chief executive Bärbel Kirchner said in a statement. “Technically capable Namibian contractors are being sidelined because they cannot meet financial requirements that do not align with local conditions.”

The federation argues that the RCC model requires contractors not only to execute projects but also to secure or provide financing – a shift that inherently favours companies with stronger balance sheets and access to cheaper capital.

Foreign advantage concerns

CIF warned that this structure could tilt the playing field toward foreign-backed companies, which often benefit from state-supported financing or lower borrowing costs.

In effect, local contractors are pushed into lower-tier participation or excluded altogether, even when they possess the technical expertise to deliver major infrastructure projects.

The federation also raised concerns about the concentration of project allocation through RCC, a state-owned entity that has become a major recipient of government contracts.

According to CIF, routing projects through a single entity – which then determines participation criteria and selects partners internally – risks undermining open competition and fair market access.

CIF stressed that the matter goes beyond procurement rules and speaks to broader policy questions about how public infrastructure work is distributed and managed.

“If project allocation is concentrated through a single entity, and participation is determined by restrictive criteria, it limits fair access and places Namibian contractors on the margins of their own industry,” Kirchner warned.

The federation has formally engaged both RCC and government, calling for a review of the model and an extension of the EOI submission deadline to allow for broader consultation.