Local authorities in Namibia are tasked with providing essential services such as water and electricity to residents.
However, a troubling trend has emerged: many local authorities prioritise non-essential expenditure like allowances and sitting fees for councillors while neglecting to pay service providers. This raises urgent concerns about governance, accountability, and the sustainability of public service delivery.
The government has demonstrated its commitment to addressing water infrastructure challenges. For the 2024/2025 fiscal year, over N$1 billion has been allocated to water-related projects, with 76% of this amount directed towards infrastructure development (Ministry of Agriculture, Water and Land Reform, 2024). This investment signifies a clear intent to improve water supply systems and meet the needs of citizens.
Despite these efforts, NamWater, the country’s bulk water supplier, faces significant financial difficulties, with unpaid debts exceeding N$2.1 billion as of June 2024. These arrears are distributed across various stakeholders, including:
• Town Councils: N$684 093 901.78
• Rural Water Communities: N$625 703 582.59
• Municipalities: N$150 125 856.63
• Private/Individual Consumers: N$312 139 216.20
NamWater operates on a non-profit basis, focusing on public service. However, its capacity to deliver services is severely constrained by delayed or non-payment of dues by its customers. This situation jeopardises the organisation’s ability to maintain infrastructure and provide reliable water services, particularly in water-scarce areas.
Misplaced Priorities and Governance Issues
While local authorities struggle to settle their financial obligations for water and electricity, they continue to prioritise councillor allowances and sitting fees.
This mismanagement of funds diverts resources from essential services and undermines public confidence in these institutions.
Several factors contribute to this misplaced prioritisation:
Legislative Loopholes: The Regional and Local Authorities Act of 1992 does not provide adequate checks on administrative spending, allowing funds to be channelled towards non-essential expenditures.
Ineffective Revenue Collection: Poor payment collection systems exacerbate financial shortfalls, leading to overreliance on government subsidies.
Weak Oversight: Insufficient accountability mechanisms enable financial mismanagement to persist without significant consequences.
To better understand Namibia’s challenges, it is useful to examine how local authorities in other countries manage similar responsibilities.
South Africa
South Africa’s Municipal Finance Management Act (2003) mandates municipalities to prioritise service delivery in their budgets. Strict oversight by the National Treasury ensures that funds are allocated to essential services before non-core expenditures. Additionally, citizen participation in budget processes enhances transparency and accountability (South African Government, 2021).
Botswana
In Botswana, local authorities benefit from a robust revenue collection system. Councillor allowances are capped, and financial management is closely monitored by the Ministry of Local Government and Rural Development. These measures ensure that budgets are focused on service delivery (Republic of Botswana, 2020).
Sweden
Sweden employs a “balanced responsibility” approach, requiring local authorities to allocate funds for essential services such as water, electricity, and waste management before administrative costs. Transparency and public participation are an integral to their governance model, fostering trust and fiscal discipline (European Commission, 2023).
Recommendations for Reform in Namibia
To address these issues, the following reforms are recommended:
Amend the Regional and Local Authorities Act of 1992
The Act should be revised to cap councillor allowances and prioritise payments for essential services in municipal budgets.
Strengthen Revenue Collection Mechanisms
Modernising billing systems and enforcing stricter payment terms can enhance revenue collection and reduce arrears.
Enhance Oversight and Accountability
Mandating regular audits and independent financial reviews will ensure funds are used responsibly and effectively.
Promote Citizen-Centric Budgeting
Involving residents in budget formulation can align expenditure with community needs and promote transparency.
Adopt Service-Based Budgeting
Local authorities should prioritise payments for water and electricity, ensuring that these critical services are not compromised.
Conclusion
Local authorities in Namibia must realign their financial priorities to ensure the timely payment for essential services such as water and electricity. By addressing legislative gaps, improving revenue collection, and promoting accountability, Namibia can overcome its governance challenges and restore public trust. Lessons from South Africa, Botswana, and Sweden demonstrate that transparency, fiscal discipline, and citizen participation are critical to sustainable service delivery. Namibia must act decisively to implement these reforms, ensuring that Local Authorities fulfil their mandate to serve their communities effectively.
It is time to end the cycle of misplaced priorities and ensure that public resources are directed towards improving the lives of the people. The future of essential services in Namibia depends on bold reforms and a collective commitment to change.
Lot Ndamanomhata is graduate of Public Management, Journalism and Communication. This article reflects his views and he write entirely in his personal capacity.