CHAMWE KAIRA
Namibia Water Corporation (NamWater) recorded a net loss of N$128.3 million during the 2024/25 financial year despite increasing revenue to N$2.22 billion, as rising operating costs and a sharp increase in expected credit losses weighed on its financial performance.
According to chief executive officer Abraham Nehemia’s report in the corporation’s integrated annual report, total revenue increased to N$2.216 billion from N$2.112 billion in the previous financial year.
However, operating expenses climbed to N$2.035 billion from N$1.587 billion, while expected credit losses more than doubled to N$536.7 million from N$182.5 million, resulting in a reversal from the previous year’s N$80.5 million surplus to a N$128.3 million deficit.
Capital expenditure increased to N$242 million from N$190 million in the previous year, while the corporation reported that no water tariff increases have been implemented since the 2020 financial year.
Despite the loss, NamWater said it remained financially solvent and liquid, with a current ratio of 6.59, up from 5.45 in the previous year, and continued to operate without external interest-bearing debt.
The utility also retained its Fitch BB- credit rating with a Stable Outlook, which it said reflected continued confidence in its ability to mobilise capital for future infrastructure investments.
Operationally, NamWater contracted N$578 million worth of capital projects against a target of N$1.1 billion, citing procurement and implementation challenges.
Non-revenue water increased slightly to 10.9%, above the target threshold of 10.7% and higher than the previous year’s 10.3%.
Water quality compliance reached 93.2%, narrowly missing the corporation’s 95% target, while 955 scheduled maintenance work orders were completed against a target of 1,284.
NamWater reported that developed water resources currently stand at 316 million cubic metres annually, exceeding the country’s present demand of 194 million cubic metres per year.
The corporation said this confirms that water supply remains secure in the near term, although it acknowledged that long-term sustainability planning remains a priority.
Investment in technology and innovation reached N$23.4 million, close to the N$25 million target, while payroll costs accounted for 28% of operating expenditure, remaining within the corporation’s target of 30%.
On stakeholder engagement, the corporation said its stakeholder satisfaction survey was 75% complete by year-end, below its 100% target. Corporate social responsibility spending totalled N$2.76 million during the year in support of social and environmental initiatives.
Nehemia said NamWater continued to face challenges including water scarcity, aging infrastructure, tariff freezes and growing customer debt, but remained committed to maintaining reliable and sustainable water supply services.
