Business Reporter
THE Namibia Water Corporation Ltd (NamWater) is facing a growing financial challenge as outstanding payments for water services have surged to N$2.4 billion as of February 2025.
This marks a 16% increase from the N$2.1 billion recorded in June 2024, posing a serious threat to the long-term sustainability of water supply in Namibia.
Lot Ndamanomhata, Head of Public Relations and Corporate Communications at NamWater, said that the debt is spread across various consumer categories, with local authorities, private consumers, and rural water communities accounting for the largest share.
Key debt increases include: Municipalities, whose debt has reached N$211 million, followed by Town Councils, with their debt reaching N$776 million, Private Consumers (N$341 million), Village Councils (N$146 million), and Rural Water Communities (N$676 million).
“NamWater is a state-owned enterprise, meaning it is 100% government-owned. It receives no subsidies from its shareholder and has not had a tariff adjustment in the last five years. Revenue collections fluctuate based on water consumption and payment compliance. The growing debt burden—currently at N$2.4 billion—poses a significant risk to sustainable revenue collection. Meanwhile, the cost of providing water—particularly energy costs—continues to rise,” Ndamanomhata said.
He added that as of 28 February 2025, the total outstanding debt from local authorities amounts to N$889 million, with the highest debts owed by: Rundu Town Council, owing a total of N$333.9 million, followed by Rehoboth Town Council at N$108.4 million, followed by Khorixas Town Council with N$71.7 million.
Ndamanomhata said that the continued failure to settle water bills severely affects NamWater’s ability to operate effectively.
“Unlike profit-driven businesses, NamWater relies solely on revenue from water sales to maintain operations, infrastructure, and service delivery. NamWater has not increased tariffs in four years despite rising operational costs. Without debt recovery, investments in ageing infrastructure will be delayed, jeopardising reliable water supply,” Ndamanomhata said.
He added that while the Namibian government, largely through NamWater, currently serves 87% of the population with access to water, further expansion to underserved communities is at risk due to the financial strain caused by unpaid debts.
“NamWater is a bulk water supplier that relies on revenue from water sales to maintain operations, upgrade infrastructure, and expand access. When local authorities or other customers fail to settle their debts, it directly affects our ability to provide reliable services,” he said.
Ndamanomhata thus added that to prevent potential service disruptions and ensure continued water provision, NamWater urges all debtors—including local authorities, government institutions, industries, and private consumers—to settle their outstanding accounts.
“If the situation does not improve, NamWater may have no choice but to implement stricter measures to recover outstanding payments. Non-payment becomes unsustainable—as seen with outstanding debts exceeding N$2.4 billion—NamWater is forced to take measures to recover funds and ensure service continuity. The goal is to ensure that water supply remains uninterrupted while maintaining financial sustainability. Additionally, residents have raised concerns that they pay their local authorities for water, yet these payments are not forwarded to NamWater. Strengthening accountability in revenue management remains critical, especially at Local Authorities. Water is a fundamental necessity, and without timely payments, the ability to provide this essential resource will be severely compromised. NamWater remains committed to working with all stakeholders to secure Namibia’s water future,” Ndamanomhata concluded.
Picture for illustrative purposes only.
