90% of roads ‘unpaved’

THE Road Fund Administration (RFA) says more than 90% of Namibian roads are unpaved.

Manager of corporate services at the RFA Scheifert Shigwedha said Namibia has a road network of approximately 49 000 km, valued at N$101 billion.

“Ninety percent are unpaved, which are salt roads and gravel roads, which mean they are not of bitumen standard,” he said.

Since inception, the RFA has invested more than N$20 billion in road infrastructure, he said.

Namibia’s ranked number one in Africa, and 21 in the world in terms of the quality of road infrastructure.

Shigwedha said that Nedbank Namibia has advanced a loan of N$350 million to the RFA to finance the low volume road seal strategy (LVRSS) and sought debt funding in order to execute the LVRSS.

“The strategy intends to upgrade highly trafficked gravel roads to a low volume bitumen seal. The LVRSS is an alternative maintenance strategy to optimise the available funding by doing more road maintenance work with limited financial resources,” he said.

Shigwedha said there is an increasing funding gap, as well as serious challenges due to inadequate maintenance, rapid deterioration of the gravel road network, depletion of available gravel material, and the high cost of gravel road upgrading, among others, the LVRSS was designed.

“The main objective of the LVRSS is to improve the level of service on gravel roads to the road users, resulting in reduced vehicle operating costs and time saving.

“The overall maintenance demand is also reduced, leading to cost savings in a number of routine maintenance activities,” he said.

Nedbank Namibia managing director, Martha Murorua said they initiated the relationship with RFA in 2016, and Nedbank Namibia has become a key partner in their business, with debt funding being the first step towards furthering the partnership with the RFA.

“We are confident that this loan will add value to the transport and logistics sector in the country,” said Murorua.

Despite the tough economic environment, Nedbank Namibia has committed to supporting the economy through credit extensions to account holders and by engaging clients on debt restructuring, she said.

“The funding agreement with the RFA illustrates our commitment to playing our part in seeing the Namibian economy grow, and good roads play a crucial role in overall economic development.

At Nedbank Namibia, we have no doubt that the loan will add value to the transport sector in the country and further stimulate economic activities in other secondary and tertiary sectors,” said Murorua.

Current estimates indicate that Namibia should upgrade 315 km to LVRSS every year at a cost of N$923 million annually, in order to arrest the rapid deterioration and reclaim the gravel road network to acceptable condition.

RFA CEO, Ali Ipinge said due to budgetary constraints, it has become a serious challenge to adequately maintain the gravel road network.

“Consequently, the road network is in poor condition and continuously deteriorating. Indications are that if we do not act promptly, the situation will deteriorate to a point where 75% of the gravel road network is projected to be in a poor-to-very poor condition by 2025,” explained Ipinge.

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