Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Rising city tariffs rub salt into consumer wounds

Home National Rising city tariffs rub salt into consumer wounds
Rising city tariffs rub salt into consumer wounds

Stagnant salaries versus rampant inflation already has Namibian consumers on the defensive. Now, the City of Windhoek (CoW), with increases in water (4.5%) and refuse removal (5%), is demanding more money from already cash-strapped residents. 

The increases, effective from this month, will force city residents to choose between fuel, food, water or sanitation. 

In addition, the CoW is awaiting approval from the Electricity Control Board (ECB) on its electricity tariff application. Once approved, this increase is sure to be another slap in the face of already-struggling consumers. 

In defence of the city, its spokesperson Harold Akwenye this week told New Era that everything in the domestic economy is going up, and the increases are thus valid. 

“Inflation is going up, and you saw that NamWater and Nampower already raised their tariffs. There are other factors we looked into, and it makes sense to raise it now,” he proffered. 

Just last month, the city stated that it is owed a staggering N$1.2 billion as at ends May 2023. Culprits with outstanding accounts include residential clients, businesses, state-owned enterprises and government itself. 

At the time, the city noted that the debt was becoming unsustainable, making it difficult to pursue their mandate of delivering uninterrupted municipal services to customers. 

Meanwhile, local economist and city resident Omu Kakujaha-Matundu said living in the capital is becoming tougher and tougher. 

“The increase doesn’t seem to be excessive, but it came at a time when the consumer is already stretched to the bone. We are already in a cost-of-living crisis, and this tariff increase is like rubbing salt into raw wounds,” he stressed.  As an economist, Kakujaha-Matundu said he would advise consumers to live within their means, but lamented the fact that consumers have no more means. 

“Government should open its mouth, and tell the nation how it is planning to cushion consumers against the throes of rising prices,” he continued. 

Natalia Shilongo, also an economist and resident of Windhoek, said it is not economically viable for consumers to see house bonds, car loans and food prices increasing at the same time as rates and taxes. “But, this doesn’t stop the city from milking already-drained consumers,” she complained.  Shilongo said due to a lack of disposable income, the rate hikes can be expected to result in significant debt increases and more defaults.

“The nature of business may be reasonable, but its timing is not. In the environment of rising inflation and interest rates, there has been a surge in the average cost of living; and the same cannot be supported by these rate increases. Consumers are drained, specifically on the low to middle-income spectrum. One can only advise consumers to cut home energy charges by reducing their usage,” the economist advised. 

Another resident was also downbeat.

“This city tariff increase exerts more pressure on households which are already struggling under a high cost and interest rate environment. This definitely pushes up my monthly cost of living as a young professional. With the current disinflationary trend (June CPI rate: 5.3%), this new tariff increase is likely to marginally push up the inflation print for July,” opined fellow local economist, Enos Kamutukwata. 

Katutura resident Tabitha Kandjii likewise shared her frustration within an ailing economy. She said she does not know what to do, or how to live within the dwindling limits. “It’s a trying time of confusion and depression. This is the most difficult era of my life. We are now learning how to budget accordingly,” Kandjii stated. 

– mndjavera@nepc.com.na