RCC model may sideline locals, CIF warns

The Construction Industries Federation of Namibia (CIF) has raised serious concerns regarding the structure and implications of a recent Expression of Interest (EOI) issued by the Roads Contractor Company (RCC). The Federation warns that the current model contradicts the stated objectives of the Deputy Minister of Works and Transport, Veikko Nekundi, to increase the participation of local contractors.

While the CIF supports efforts to strengthen infrastructure delivery, it cautions that the RCC’s requirements—as reflected in the EOI—do not align with the goal of empowering Namibian businesses in practice.

A primary point of contention is the EOI’s categorisation system. The CIF notes that many local contractors, who possess the necessary technical capacity and experience to qualify for high-level projects, are being excluded by financial thresholds that do not reflect the realities of the Namibian construction sector. The Federation emphasises that technically capable firms should not be forced to compete at lower tiers simply because they cannot meet these "unrealistic" financial requirements.

Furthermore, the RCC model reportedly requires contractors to not only execute the work but also to provide or secure the necessary project financing. This shift heavily favours entities with massive balance sheets and access to cheaper capital. The CIF is particularly concerned that this approach gives an unfair advantage to foreign-linked companies with access to state-backed or low-cost international financing, creating an uneven playing field for domestic players.

The CIF further highlighted that the RCC is a significant recipient of government projects. When projects are directed through a single State-Owned Enterprise (SOE) that selects partners internally based on restrictive criteria, it raises alarms regarding market access and competitive neutrality.

“This creates a clear disconnect between the stated intention to support Namibian contractors and the actual conditions being created in the market,” said CIF CEO Bärbel Kirchner.

“What we are seeing is that technically capable Namibian contractors are being excluded—not because they cannot deliver, but because they cannot meet financial requirements that do not reflect local realities,” Kirchner added. “If project allocation is concentrated through a single entity, it risks limiting fair access to work and placing Namibian contractors on the margins of their own industry.”