Namibia’s construction sector is expected to remain subdued in 2026, as modest support from improving credit conditions is outweighed by structural constraints and delays in major investment decisions, according to Simonis Storm.
The firm’s Economist, Almandro Jansen, said the outlook for the sector remains uneven, shaped by easing financial conditions on the one hand and persistent structural weaknesses on the other. While access to credit is gradually improving, this has yet to translate into a broad-based recovery in construction activity.
Private sector credit extension is forecast to grow by about 5% year on year, driven largely by corporate borrowing. However, household credit demand is expected to remain restrained due to moderate income growth and elevated living costs, limiting activity in residential construction.
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