Right Of Reply
RE: The Namibian’s editorial of Friday, 7 November, ‘The Folly of Rolls-Royce Roads’.
The Road Fund Administration (RFA) wishes to register its concern over a number of inaccuracies and misconceptions contained therein.
The RFA acknowledges and respects the role of the media in promoting public accountability and constructive debate.
However, it is equally important that commentary on national institutions such as the RFA be based on factual accuracy and fair interpretation.
We therefore wish to clarify the following key issues raised in the editorial.
The assertion that the RFA intends to “double the fuel tax to N$4.46” is factually inaccurate and not reflected anywhere in our planning parameters and budget for the coming financial years.
Yes, the RFA is facing a historic and structural funding gap attributed in part to declining fuel levy revenue, rising roads maintenance and rehabilitation costs and not due to the “mismanagement of funds”.
Over the past 20 years, increases in road-user charges have not kept pace with road construction inflation, meaning a considerable funding gap has developed, necessitating the call to adjust the fuel levy in a gradual manner over multiple financial years and not through a once off massive increase.
UPKEEP AND LEVIES
The claim that Namibia is “falling behind with the upkeep of its roads” overlooks the fact that the rise in road maintenance and rehabilitation needs, coupled with an ageing road network, requires the RFA to look for alternative strategies to generate sufficient revenue to optimally fund the road network (both national and urban roads).
The RFA’s Integrated Strategic Business Plan (ISBP) 2024-2029 has identified targeted interventions to reduce the maintenance backlog from N$4.5 billion to N$0.5 billion at the end the strategic period in 2029.
The editorial further attributes road sector challenges to “underfunding and mismanagement of the fuel levy”. This is misleading.
For the past 11 years, the RFA has consistently and timeously (and in line with existing Public Enterprises Governance Act) prepares and submits its annual reports and annual financial statements (refer to RFA website) to the shareholder, detailing the revenue collected and the equivalent expenditure to the road sector.
The management of the road-user charges are in strict compliance to the applicable governance principles.
The RFA has over the same period achieved unqualified audit opinions. This points to prudent financial, operational and strategic management of the Road Fund in line with the RFA Act.
EGOS AND AUTOBAHNS
The suggestion of “kickbacks, self-absorbed egos, and neglect of local skills” is both unfounded and unfair.
Namibia’s road sector, through its institutions and reforms, continues to be recognised as one of the most successful models on the African continent, attracting numerous study visits and benchmarking exercises by other countries.
A number of benchmark studies are modelled on the Namibian experience.
The editorial’s reference to “autobahn roads built with money from Germans” and “rushed construction of double and triple-lane highways” misrepresents the nature and intent of national road projects.
The development of national roads forms part of the government’s broader Vision 2030, National Development Plans, and Logistics Hub Strategy.
These projects are driven by long-term economic and safety imperatives, not vanity or luxury.
In addition, national road infrastructure development is the government’s responsibility, not that of the RFA.
Road infrastructure development and expansion is also well articulated in the 2018 National Transport Master Plan under the custodian of the Ministry of Works and Transport and operationalised by the country’s Medium to Long Term Roads Master Plan.
POTHOLES AND ROADBLOCKS
Allegations regarding high-cost road construction overlook that investment decisions are guided by safety, sustainability and economic integration factors, not cost alone.
Similarly, references to the Windhoek-Okahandja road “developing potholes” generalise isolated cases that may result from various factors such as traffic and environmental conditions.
While it is possible that the first section of this road could have a few potholes, it is grossly inaccurate to apportion deterioration on the entire stretch of the road.
Concerning the so-called “N$70 million roadblock”, it must be clarified that this is a multi-purpose facility designed to accommodate law enforcement, including security, as well as emergency services and medical response – all under one roof – representing an integrated and future-focused infrastructure investment to support mobility, safety and security.
The projected cost to completion of this project is estimated at N$44 million and supported by the RFA in line with the RFA Act, Section 17(1)(e).
REHABILITATION
The assertion that “increasing the fuel levy will drive taxpayers into unaffordability” fails to acknowledge the complexity of the RFA’s funding challenges, ageing and life-span of our road network, which requires extensive replacement/rehabilitation over time.
The RFA is not merely seeking to increase levies; it is pursuing revenue diversification, operational modernisation and enhanced stakeholder engagement to ensure long-term financial sustainability while minimising the impact on road users.
The cost to the road will certainly be three times higher (as per the data from the country Road Management System) in the medium to long term if the road user charges and the baskets of levies continue to lag the actual cost of maintenance and rehabilitation – leading potentially to the country having to lower its roads design and construction standards, increased travel time and higher vehicle operating costs.
In conclusion, the RFA remains committed to transparency, accountability and constructive engagement with all stakeholders, including the media.
- – Ali Ipinge, chief executive officer, Road Fund Administration.
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