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RFA envisages to inject N$13 billion into road sector

Home National RFA envisages to inject N$13 billion into road sector

WINDHOEK – Road Fund Administrator (RFA) board chairperson Penda Ithindi says the fund envisages an injection of at least N$13 billion into the road sector over the next five years, providing much needed capital in the domestic economy.

“Good transportation infrastructure coupled with effective management proper maintenance and innovative new development to increase capacity, are some of the key components defined in the Namibia Logistic Master Plan as pillars to propel Namibia towards achieving its regional logistics hub ambitions,” Ithindi says in the fund’s integrated annual report tabled in Parliament last week.

Ithindi said RFA would continue to ensure high levels of performance and also monitor and review targets periodically as part of continuous improvement in its quest to maintain high standards of excellence. 
He said long-term sustainability and sound financial management will continue to be the defining pillars of the administration and the fund.

“For quite sometime now, the administration has implemented a number of strategic initiatives to embed efficiency in the RUCs [road user charges], optimize revenue collection and keep the cost of administration and compliance in check,” he said.

He said measures to plug potential collection gaps have also been instituted in favour of fairness and equity.

“While the RUC levy rates still significantly lag behind full cost recovery and road sector cost prices, annual adjustments to date have contributed to the growth of the fund income and allowed for increasing investment in the national road infrastructure network,” he said.

Combined with total public sector investment outlay in the road sector, Ithindi said the quality of Namibia’s roads infrastructure continues to fare well in the African region and globally.
He said the 2017 Global Competitiveness report ranks the quality of Namibia’s road infrastructure at 31st out of 137 countries assessed.

This, he said, is higher than the overall national infrastructure ranking at 67th and, indeed, Namibia’s overall competitiveness ranked at 90th globally.

He said the consistent achievements in the road sector are evidence of the strides that the country is making and the importance placed on transport as a catalyst for economic growth, trade facilitation and regional integration.

Ithindi says through RFA partnerships with regional and local authorities, the fund will continue to support the upkeep of road infrastructure within the domain of various local authorities.

“We will also continue to support the Nation Road Safety Council of Namibia (NRSC) in search for solutions to curb road accidents, by creating a safer and more efficient network of transportation and logistics for the country and its people,” he said.