A directive by urban and rural development minister Erastus Uutoni, requesting local authorities and regional councils to put on hold any proposed tariff increases, has been met with mixed feelings. 

Some regional councils and local authorities have made proposed increases for the 2020/2021 financial year and have submitted amendments to the ministry for publication in the Government Gazette. However, Uutoni suggested such plans be put on hold in light of the devastating effect of the Covid-19 pandemic on livelihoods. 

“While it is expected that these services should be provided on a cost-recovery principle, it is expected from all of us to be very sensitive of and to take into account the socio-economic challenges in general and especially due to the Covid-19 pandemic on the citizens, both individuals and businesses, and consequently the need for us to ensure that some form of relief is provided during these difficult times,” Uutoni wrote in a circular last week. 

While some local authorities told New Era they were not much affected by the directive because of drawn up fixed project capital budgets, others have bemoaned the directive, saying it would only be appropriate if service providers also refrain from increasing tariffs for the new financial year.  Ondangwa Town Council CEO Ismael Namugongo said the local authority has increased some services at a minimal rate. “We don’t just increase for the sake of increasing, but we increase some items due to inflation. These increases are all done at the minimal. We knew already of the challenges caused by Covid-19, so the few items that are increased are really at the minimum,” he said. 

He said they would not be much affected by the circular of the minister, saying they already have a budget projection of N$140 million, inclusive of capital project.

The mayor of Helao Nafidi Elias Nghipangelwa said they normally increase their tariffs after service providers have done so. “For example, Namwater,  in most cases, the difference between their charges per cubic and ours is normally less than N$5 per cubic – sometimes N$1.8 and N$2. They are not giving us fixed prices,” he clarified. 

He said, so far, the town council did not receive any letter from any of the service providers, particularly Namwater, stating the increase of their tariffs.  “If they increase, we will be left with a problem – but if they do not increase, we will not be affected. If they increase, that means we are likely going to distribute the services at a lower price while getting it at a very high cost,” he said. 

Nghipangelwa said council has not increased any tariffs over the past five years. 

Windhoek mayor Fransina Kahungu said the City has submitted a proposal for an electricity tariff hike, saying they have accepted the minister’s directive.