Accelerate access to land to boost investment
The ease of accessing land in Namibia seem to be a problem and thus has the potential to deter both domestic and foreign investment. Hence, accelerating land delivery is key to boost competitiveness in a region or country.
This was revealed in the private sector development survey 2021/2022 which was conducted by the Ministry of Industrialisation and Trade with support of GIZ between November and December 2021. The survey was conducted for the third consecutive time.
According to the survey, the demand for land has increased in 2021 and the rating of -1.6 for the ease of obtaining serviced land suggests it remains a mission impossible and reflects a deterioration from 2020 (-1.4).
The increase in the demand for land was mainly driven by micro enterprises (43.7%), large corporations (16%) and medium-sized businesses were seeking to access land. The survey revealed that 95.5% of the respondents who are in need for serviced land rated the process of obtaining land as difficult or very difficult with a clear trend towards very difficult (64.4%).
The findings indicate a deterioration of the situation compared to 2021, when 87.1% viewed the process as difficult or very difficult and 3.3% as either easy or very easy.
In particular, micro enterprises struggle with obtaining land (-1.7), while the rating by medium sized and large enterprises was the only slightly better, -1.5 and -1.4, respectively.
Financial companies that had the highest demand for serviced land were least impressed with the access to land (-1.8), followed by hospitality and manufacturing businesses (both -1.7) as well as real estate and construction firms (both -1.6), the survey reads.
Strong demand for serviced and un-serviced land exists in Ohangwena, 50% and 19.2%, respectively. In addition, Oshana recorded 45.4% for serviced land and 16.7% for un-serviced land.
At the opposite end of the spectrum are the //Kharas (14.3%), Kunene (16.7%) and Erongo (18.2%) regions with less than one out five businesses in need of serviced land.
For regional analysis regarding challenges, the case numbers for most of the regions were too low for separate analysis.
Respondents from Erongo, Khomas and Oshana regions agreed on the level of challenges with a rating of -1.6, compared to -1.4 in Omusati and -1.8 in Ohangwena regions.