Contractors turn away from low-paying Otji housing projects

Contractors in Otjiwarongo are refusing to build houses under the government's Build Together Programme because the N$45 000 loans available to beneficiaries are insufficient to cover construction costs, the municipality has told Parliament.Senior housing officer Sakaria Namhindo told the Parliamentary Standing Committee on Urban and Rural Development and Land Reform on Wednesday that rising building material costs had made it increasingly difficult to attract contractors, leaving some housing projects unfinished.“Contractors in Otjiwarongo are not interested in building Build Together houses because it doesn’t make financial sense to them,” Namhindo said.The municipality is implementing Phase 12 of the Decentralised Build Together Programme, involving 41 beneficiaries who were initially allocated loans of N$40 000 each. Although the amount was subsequently increased to N$45 000 to accommodate rising material costs, the municipality maintains that it remains insufficient to construct a standard house.“Less money is allocated to the project, and the money that is allocated is not enough to procure material for construction of a standard dwelling,” he said.Of the 41 houses planned under the current phase, 32 have been completed since 2020, with progress hampered by rising construction costs, difficulties attracting contractors and delays by some beneficiaries in submitting building plans for approval.Namhindo said the municipality was also concerned that some completed houses remained unoccupied, raising questions about whether beneficiaries were taking ownership of the properties allocated to them.“We have houses that have been constructed and they remain unoccupied,” he said.The municipality wants government to increase Build Together loan amounts to reflect actual construction costs and provide additional funding for infrastructure development and land servicing.It has also called on the Ministry of Urban and Rural Development to facilitate greater cooperation among stakeholders involved in land delivery, while increasing investment in serviced land to reduce housing development costs.Informal settlements under pressureThe difficulties facing the Build Together Programme come as Otjiwarongo struggles to meet growing demand for affordable housing, with the municipality reporting approximately 8 000 households across five informal settlements comprising 21 planned informal settlement areas.Many residents in these settlements have limited access to water, sewerage and electricity, while secure land tenure remains another challenge.The municipality is establishing a reception area with the potential to accommodate approximately 3 419 houses, although the project is awaiting ministerial approval for the implementation of the Flexible Land Tenure System.Bulk water reticulation for the proposed reception area is reportedly 90% complete.Namhindo attributed the municipality's wider housing difficulties to rapid population growth, insufficient funding for land servicing and the high cost of infrastructure, which continue to limit its ability to provide affordable residential land and housing.The municipality maintains that addressing these constraints will require higher housing loan allocations and greater government investment in infrastructure and land servicing to make residential development more affordable.phillipus@nmh-hub.com.na

Contractors turn away from low-paying Otji housing projects

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Namibian Sun 2026-10-14

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Contractors turn away from low-paying Otji housing projects

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Namibian Sun 2026-10-14

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