What is driving up the cost of building materials?
The Namibian Competition Commission (NaCC) did not conduct any study to ascertain what is driving up the cost of building materials.
However, the study is in the pipeline and will be carried out once financial resources are made available by the government. The study will cover the entire sector, including the Chinese-owned businesses.
Responding to a Market Watch enquiry, NaCC noted that upon conclusion of the study, should the findings indicate problematic conduct in the market that may potentially limit competition or consumer welfare, the Commission may initiate an investigation against the companies involved in terms of section 33 of the Competition Act.
Should the investigation find a contravention of the Act, the Commission may invoke section 38 of the Competition Act which is court proceedings to declare that such companies have contravened the Competition Act and for the court to impose an appropriate penalty against those companies and to remedy the anti-competitive conduct that may have occurred.
NaCC further noted that the Namibian construction industry has over the years had a phenomenal growth and has significantly contributed to the socio-economic development of the country. However, the industry is not unsusceptible to challenges and impediments just like any other industry.
The performance of the industry is hampered primarily by the increasing cost of building materials, NaCC pointed out.
According to the Namibia Statistics Agency (NSA), the construction sector contracted by 35.9% in real value added during the second quarter of 2023, compared to a decline of 24.6% registered in the corresponding quarter of 2022. The poor performance is mainly attributed to the reduction in government spending on construction related to engineering works. [email protected]
However, the study is in the pipeline and will be carried out once financial resources are made available by the government. The study will cover the entire sector, including the Chinese-owned businesses.
Responding to a Market Watch enquiry, NaCC noted that upon conclusion of the study, should the findings indicate problematic conduct in the market that may potentially limit competition or consumer welfare, the Commission may initiate an investigation against the companies involved in terms of section 33 of the Competition Act.
Should the investigation find a contravention of the Act, the Commission may invoke section 38 of the Competition Act which is court proceedings to declare that such companies have contravened the Competition Act and for the court to impose an appropriate penalty against those companies and to remedy the anti-competitive conduct that may have occurred.
NaCC further noted that the Namibian construction industry has over the years had a phenomenal growth and has significantly contributed to the socio-economic development of the country. However, the industry is not unsusceptible to challenges and impediments just like any other industry.
The performance of the industry is hampered primarily by the increasing cost of building materials, NaCC pointed out.
According to the Namibia Statistics Agency (NSA), the construction sector contracted by 35.9% in real value added during the second quarter of 2023, compared to a decline of 24.6% registered in the corresponding quarter of 2022. The poor performance is mainly attributed to the reduction in government spending on construction related to engineering works. [email protected]
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