Allexer Namundjembo
The Namibia Water Corporation Ltd. (NamWater) is grappling with a mounting financial crisis as its outstanding debt surged to N$2.4 billion in February 2025, a 16% increase from the N$2.1 billion recorded in June 2024.
This growing debt threatens the long-term sustainability of the country’s water supply, particularly as municipalities and local authorities contribute the largest portion of the debt.
Lot Ndamanomhata, NamWater’s Head of Public Relations and Corporate Communications, confirmed that the debt burden is distributed across various consumer categories, with local authorities owing the largest share.
Ndamanomhata said as of February 2025, local authorities have accumulated a total debt of N$889 million. Among the most indebted are the Rundu Town Council, owing N$333.9 million, and the Rehoboth Town Council, with an outstanding debt of N$108.5 million.
Other municipalities and town councils contributing to the debt include the Khorixas Town Council, which owes N$71.8 million and is currently on an intervention agreement with NamWater, Otavi Town Council at N$70.6 million, and the Municipality of Keetmanshoop at N$56.6 million. Opuwo Town Council owes N$47.5 million, while the Municipality of Gobabis owes N$45.3 million.
He also added that smaller local authorities, such as the Karasburg Town Council, Okakarara Town Council, and Gibeon Village Council, owe N$35.7 million, N$34.1 million, and N$25.1 million, respectively.
The Otjozondjupa Regional Council and Omaheke Regional Council owe N$35.2 million and N$24.8 million, respectively.
“The continued non-payment of water bills severely impacts NamWater’s ability to operate effectively and invest in essential infrastructure. NamWater relies entirely on revenue from water sales to fund its services, and without debt recovery, the sustainability of our water supply is at risk,” Ndamanomhata said.
Despite rising operational expenses, including increasing energy prices, NamWater has not raised water tariffs in the past four years.
Ndamanomhata emphasised that the growing debt makes it increasingly difficult to maintain and upgrade vital water infrastructure, which could impact the delivery of services to the nation.
He also noted that many municipalities have failed to forward payments collected from residents to NamWater, further exacerbating the situation.
“If the situation does not improve, we may have to resort to stricter measures to ensure that we can continue to deliver reliable services,” Ndamanomhata warned.
NamWater also faces challenges in expanding its water services to underserved communities. The corporation currently provides water to 87% of Namibia’s population, but further expansion efforts are at risk due to the financial strain.
