Namibia boasts a well-put-out network of regional and local authorities that are the first instance of service delivery for our people and are tasked with making the most basic of services available. The people have ample and righteous opportunity, as demonstrated in many regional and local authority areas, to steer development in their regions and areas and ensure they champion their development.
A premier political programme for the government has ensured that resources and opportunities are not centralised but trickled down into the regions and constituencies. Furthermore, local participatory democracy also greatly informed the thinking of the day. This thinking brought forth the policy of decentralisation, where sub-national governments are constitutionally tasked with managing central government affairs.
Chapter 12 of the Namibian Constitution provides for the establishment of local and regional governments. That serves a full mandate for human development in regions.
We have encouragingly observed how regions have owned this process through consensus and bottom-up accountability. Having had the opportunity to be the founding chairperson of a regional council, there is ample opportunity to restructure our regional and local authorities to what works best in respective regions. There is no one-size-fits-all when it comes to improving service delivery, especially towards efficiency around expenditure of regional and local government, which this opinion piece will look at.
When looking at the allocation of needed resources, efficient expenditure of our regional and local authorities ensures that resources are allocated by way of equity, directing resources to areas where they can have the most significant impact. Experientially, Omaheke is a point in case; this has strengthened our planning and response to targeted development in growth points, settlements, and constituencies as a whole. One can look at prioritising important services that have been decentralised, such as community empowerment, poverty eradication, education, rural water supply, and works; these work hand in hand under the banner of delegated functions but operate in such a manner that one couldn’t tell them apart from the regional council. This ought to be the order of the day. In a bid to amplify service delivery, by rationalising expenditure processes, our regional and local governments can avoid being reactive to issues and have a better capacity to be proactive in our planning toward the delivery of services more effectively and promptly to citizens. This leads to improved citizen satisfaction and a better quality of life for residents. We must note that this is our first instance to facilitate development for the populace.
Furthermore, financial sustainability plays a very big part in ensuring that expenditure is made efficient and bolsters capacity to deliver without question. We must, with relent, advocate for efficient expenditure practices that will better help local governments maintain financial stability in the long term. By reducing wasteful spending and maximising the value of each Namibian dollar spent, local governments can avoid deficits and accumulate reserves for future needs. Furthermore, improved efficiency ensures that the strictest authority of financial management in regional councils and local authorities is adhered to.
When expenditures are efficiently mainstreamed, it’s easier to track where funds are being allocated and ensure that they are used responsibly and in accordance with regulations.
Efficient regional council and local authority expenditure can lead to cost savings, which can translate into lower tariff burdens for residents when looking at electricity, rates, and taxes. We see how many local authorities resort to increasing tariffs just to make up for budget shortfalls. It is important to note that there are many factors, including at the national level, that influence tariff increases; however, local authority budget shortfalls play a big part.
Economic demands such as mushrooming of new unplanned settlements, non-paying of service-receiving residents, and non-functioning debt collection mechanisms. By maximising the effectiveness of every Namibian dollar spent by local economic development departments that are spearheading development and keeping track of growth and community development departments that facilitate liaisoning and increasing income generation amongst communities, local governments can potentially minimise the need for tax increases while still meeting essential service needs. In an attempt to increase creditworthiness, efficient expenditure practices can enhance a local government’s creditworthiness, which at times is far below what it ought to be. Our regional and local authorities cannot forever count on VAT payments, subsidies, and government bailouts.
They must be in a position to enter into bankable partnerships with development finance institutions to fund projects that can diversify and change the economic landscape of towns and regions, making it easier and more affordable to access capital markets for borrowing when necessary. This can be particularly important for funding large-scale infrastructure projects, low-cost housing, land servicing, job creation, manufacturing, etc.
In summary, improving efficiency in expenditure within local government is essential for ensuring responsible financial management, delivering effective services to citizens, promoting economic growth, and maintaining the overall well-being and prosperity of the community.
*Ignatius Kariseb