NamWater drowns in unpaid debt of N$2.4 billion

Local authorities, private water consumers and rural communities owe NamWater a total of N$2.4 billion in outstanding payments as of 28 February."This is a 16% increase from the N$2.1 billion recorded in June 2024, which poses a serious threat to the long-term sustainability of water supply in Namibia," warned NamWater spokesperson Lot Ndamanomhata in a statement issued on Monday."The continued failure to settle water bills severely affects NamWater’s ability to operate effectively. Unlike profit-driven businesses, NamWater relies solely on revenue from water sales to maintain operations, infrastructure and service delivery," Ndamanomhata stressed. The debt is spread across various consumer categories, with outstanding debt broken down as follows:&bull; Municipalities: N$211 million&bull; Town councils: N$776 million&bull; Private consumers: N$341 million&bull; Rural water communities: N$676 million.As a 100% state-owned enterprise, Ndamanomhata emphasised that NamWater does not receive any subsidies from its shareholder and has not implemented any tariff adjustments over the past five years.“Revenue collections fluctuate based on water consumption and payment compliance. The growing debt burden – currently at N$2.4 billion – poses a significant risk to sustainable revenue collection. Meanwhile, the cost of providing water – particularly energy costs –continues to rise," he warned yesterday.As of 28 February, the total outstanding debt of local authorities exceeds N$889 million, with the majority of the debt owed by the town councils of Rundu, Rehoboth, Khorixas, Otavi, Opuwo, Karasburg, and Okakarara; the Keetmanshoop and Gobabis municipalities; the Otjozondjupa Regional Council, Gibeon Settlement Council and the Omaheke Regional Council.Settle debtsNamWater has called on all debtors to urgently settle their outstanding balances."To prevent potential water interruptions and ensure continued water supply, NamWater requests local authorities, state institutions, industries and private consumers to settle their outstanding accounts," Ndamanomhata urged. He noted that if the situation does not improve, “NamWater may have no choice but to implement stricter measures to recover outstanding payments.”Ndamanomhata explained that NamWater is a bulk water supplier that relies on revenue from water sales to maintain operations, upgrade infrastructure and expand access. According to Ndamanomhata, some residents have also expressed concern that they pay their water bills to local authorities, but these payments are not forwarded to NamWater.He said that accountability in revenue management remains critical and must be strengthened, particularly at local authorities.“Water is a fundamental necessity, and without timely payments, the ability to provide this essential resource will be severely compromised,” he warned. Financial sustainability Despite increasing operating costs, NamWater has not raised tariffs in recent years."Without debt recovery, investments in ageing infrastructure will be delayed, jeopardising reliable water supply," Ndamanomhata explained yesterday. While the Namibian government, largely through NamWater, currently provides water access to 87% of the population, further expansion into underserved communities is at risk due to the financial strain caused by unpaid debts, he added. "Non-payment becomes unsustainable – as seen with outstanding debts exceeding N$2.4 billion. NamWater is forced to take measures to recover funds and ensure service continuity. The goal is to ensure that water supply remains uninterrupted while maintaining financial sustainability."This article's headline has been amended to reflect the correct amount of debt to correct an error when the article was first published.– francoise@nmh.com.na

NamWater drowns in unpaid debt of N$2.4 billion

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Namibian Sun 2025-03-12

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NamWater drowns in unpaid debt of N$2.4 billion

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Namibian Sun 2025-03-12

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