Last updated on April 18, 2014 at 13:47 EDT

Frost & Sullivan Forecasts Explosion of New Infrastructure in Namibia over the Next Decade

March 5, 2012

CAPE TOWN, South Africa, March 6, 2012 /PRNewswire/ — Namibia will see significant growth across a number of infrastructure sectors over the next decade. The greatest obstacle to meeting infrastructure development goals will be to not only ensure that new infrastructure projects are completed in a timely manner, but also that the necessary maintenance and rehabilitation of old infrastructure takes place. This will allow the seamless integration of old and new infrastructure networks and systems.

New analysis from Frost & Sullivan (http://www.environmental.frost.com), African Infrastructure Tracker: Namibia’s Infrastructure Sectors, finds that there will be significant growth across a number of infrastructure sectors in Namibia. This will be the result of the government’s aim to increase economic growth and access to services, as well as the country’s involvement in trade within the SADC region. The research covers the road, rail, airport, port, energy and power, telecommunications, water and sanitation, housing, education and healthcare infrastructure sectors.

“After building infrastructure in the 1960′s to support the population and industry, new infrastructure developments rarely occurred, and maintenance has been insufficient,” notes Frost & Sullivan’s Environmental and Building Technologies Research Analyst Sarah O’Carroll. “As a result, both transport and energy infrastructure is insufficient to support current industry levels.”

The road network requires expanding in order to increase access to the transport network and; although 92.0 per cent of the road network is bitumen/gravel paved, most of the roads in the country are in desperate need of maintenance work, upgrading and rehabilitation. Over the next decade, $779.4 million has been earmarked for the development of the road network, with $666.8 million to be used for maintenance and upgrading.

Insufficient investment for maintenance and upgrading has led to the poor provision of services across the country. Large infrastructure gaps also need to be addressed across several sectors, due to poor planning.

The three operating power stations were built in the late 1970′s and no significant expansion projects have followed. For a long time, Namibia relied upon Eskom (South Africa’s power utility) to meet energy demands.

As a result, Namibia is a net energy importer, importing 66.3 per cent of its energy requirement, and power shortages are frequent. This has ultimately resulted in the Government playing catch-up, rather than focusing on increasing capacity to meet future demand.

“Despite the challenges facing infrastructure development, the market presents numerous opportunities for growth,” says O’Carroll. “The discovery of oil off-shore has highlighted the potential for industry growth and has further underlined the urgent need for infrastructure development in the country.”

The timely completion and delivery of infrastructure – within predicted budgets – will be crucial to meeting infrastructure development goals.

“The Chinese’s ability to reduce costs is a key reason for their success in Namibia thus far,” concludes O’Carroll. “Companies that can demonstrate their ability to work within a budget and complete projects within time constraints will have the upper hand in winning tenders.”

If you are interested in more information on this study, please send an e-mail with your contact details to Samantha James, Corporate Communications, at samantha.james@frost.com.

African Infrastructure Tracker: Namibia’s Infrastructure Sectors is part of the Environmental Growth Partnership Services programme, which also includes research in the following markets: African Infrastructure Tracker: Kenya’s Infrastructure Sector, African Infrastructure Tracker: Ghana’s Infrastructure Sector, African Infrastructure Tracker: South Africa’s Transport Infrastructure Sectors and African Infrastructure Tracker: South Africa’s Social Infrastructure Sectors. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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African Infrastructure Tracker: Namibia’s Infrastructure Sectors

Samantha James
Corporate Communications – Africa
P: +27 21 680 3574
F: +27 21 680 3296
E: samantha.james@frost.com

SOURCE Frost & Sullivan

Source: PR Newswire