RFA’s Ali Ipinge announces amendments to vehicle licence fee debt framework

Ali Ipinge, the chief executive of the Road Fund Administration, at the RFA’s head office, Windhoek, 17 September 2025.

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It is a privilege to welcome you to this important engagement, where we announce a landmark development in Namibia’s road funding framework. 

Today marks a decisive step toward a fairer, more efficient, and legally sound system for managing vehicle licence fee debt and entry fee exemptions.

On 22 August 2025, significant amendments to the Road Fund Administration Act, Act No. 18 of 1999, officially came into effect through the commencement of the RFA Amendment Act, 2022 (Act No. 11 of 2022) and the RFA Amendment Act, 2024 (Act No. 9 of 2024). 

These amendments specifically address the treatment of prescribed and unprescribed debts, as well as exemptions relating to vehicle entry fees.

This achievement is the culmination of a process that began in 2021, involving rigorous policy review, extensive consultations, and meticulous legal drafting. It brings our practices in line with the Prescription Act of 1969 as amended, enhances fairness, and strengthens transparency in the administration of vehicle licence fee obligations.

Allow me to explain what these changes mean for vehicle owners and for institutions.

Under the amended legislation, vehicle licence fee debts older than three years are now regarded as prescribed. In terms of the Prescription Act, these debts are legally extinguished and will automatically be written off by the Road Fund Administration and Natis system. 

Vehicle owners do not need to apply for this relief—it will happen by operation of law.

Currently, the value of such prescribed debt amounts to over N$371 million. This represents a significant step in relieving the public of historical debts that can no longer be enforced.

For debts that are less than three years old, referred to as unprescribed debt, the Act introduces an opportunity for relief. Vehicle owners may apply for a waiver of interest and penalties on these outstanding amounts. 

While the principal vehicle licence fees remain payable, the interest and penalties can be waived upon successful application. The chief executive officer of the Road Fund Administration, with the approval of the board, is authorised to waive interest and penalties of up to N$1 million. Where the amount of interest or penalties owed exceeds N$1 million, the applicant may apply to the minister of finance, who has the authority to grant waivers beyond this threshold, upon recommendation by the RFA. It is important to note that all applications to the minister of finance must still be submitted through the RFA. 

Once submitted, applications will be vetted, and forwarded to the minister for approval.

The amended Act also addresses vehicle entry fees. Exemptions may now be granted in certain situations, including for cross-border military exercises approved by the minister of defence, the cross-border transport of medical staff or patients, and in instances where foreign police officers are granted temporary entry into Namibia with ministerial approval. 

In addition, the minister of finance may approve other exemptions in the public interest, following due process. This provision ensures that Namibia’s transport system remains supportive of regional cooperation, humanitarian needs, and national security.

The application process is clear and accessible and there is no application fee. Vehicle owners who wish to apply for a waiver must complete the prescribed application form, provide supporting documentation as required by the regulations, and submit them directly to the RFA by hand, post, or email. 

Each application will be vetted by the RFA’s Licence Fee Interest and Penalty Waiver Committee, before being considered by the chief executive officer (CEO), and finally approved by the board.

As set out in the regulations, all applicants, whether applying to the CEO or the minister, will receive a response within a defined 90-day timeline from submission to the RFA. This ensures certainty, fairness, and accountability throughout the process.

How prescription works

It is important to clarify that the prescription period begins 22 days after the due date for licence renewal. For penalties and interest, it starts the day after the fee becomes payable. Each year’s licence fee prescribes individually after three years. 

Even where a vehicle has been deregistered after three consecutive years of non-payment, the outstanding debts for each year will still be prescribed in sequence.

Why these amendments were necessary

These reforms were introduced to align the Road Fund Administration’s debt collection practices with the provisions of the Prescription Act, to enhance legal certainty and fairness in the management of vehicle licence fee debt, to support compliance by removing barriers caused by accumulated interest and penalties, and to reduce the administrative burden on both the RFA and the Natis system.

This is not just a technical or administrative reform, it is also a social and economic milestone. 

The amendments recognise the financial hardship faced by many Namibians, while at the same time ensuring that those who are able to pay continue to meet their obligations. It strikes a balance between compassion and responsibility, between legal certainty and fiscal prudence.

The role of the RFA and RA

The Road Fund Administration is mandated to raise and manage funds for the maintenance and development of Namibia’s national road network.

It does so primarily through road user charges, which include fuel levies, vehicle licence fees, cross-border charges, and mass-distance charges.

The Roads Authority, through the Natis system as assigned by the minister of works and transport, is responsible for the administration and enforcement of vehicle registrations and licences. While the RFA manages the financial side, the RA ensures operational implementation on the ground. Together, the RFA and RA are working in close partnership to ensure the successful rollout of these amendments.

Implementation and communication

The successful implementation of these amendments relies on strong collaboration with the Roads Authority and NaTIS, whose systems and frontline staff will be essential in guiding vehicle owners.

To support the rollout, the RFA will launch a nationwide public awareness campaign. This includes radio announcements, social media engagement, and a dedicated online portal with information and frequently asked questions on the RFA website. NaTIS offices are ready and equipped to assist vehicle owners in checking their status in order to apply for relief.

For the Namibian public, the benefits of these amendments are both immediate and far-reaching. More than N$371 million in prescribed debt will automatically be written off, freeing thousands of vehicle owners from historical obligations that can no longer be enforced. 

In addition, unprescribed debt amounting to over N$245 million may now qualify for the waiver of interest and penalties, providing much-needed financial relief while still preserving the obligation to settle the principal licence fees. 

By removing these barriers, the amendments make it easier for vehicle owners to return to compliance and continue using Namibia’s roads legally. At the same time, the changes ensure greater transparency and fairness in the system, reduce the administrative burden on both the Road Fund Administration and Natis, and strengthen public confidence in how vehicle licence fees are managed.

Ultimately, this reform represents a balance between compassion and accountability, easing the financial pressures on citizens while safeguarding the sustainability of our national road network.

This milestone has been made possible through leadership, collaboration, and a shared vision of fairness and accountability. We wish to express our deep appreciation to the minister of finance, Ericah Shafudah, whose commitment and leadership ensured the successful passage and gazetting of these amendments. 

We also acknowledge the invaluable contributions of the attorney general’s office, the legal drafters at the Ministry of Justice, the Roads Authority, and the dedicated staff of both the RFA and NaTIS.

These amendments demonstrate the government’s responsiveness to the needs of the people, its commitment to justice and fairness, and its determination to ensure sustainable road funding for the benefit of all Namibians.

In conclusion, these amendments reflect the Road Fund Administration’s commitment to transparency, fairness, and continuous improvement. They provide immediate relief to vehicle owners, promote compliance, and secure the sustainable funding of Namibia’s road infrastructure.

I therefore urge every vehicle owner to seize this opportunity to update their vehicle licence status and to take advantage of the relief measures now available. Let us all work together to foster compliance, promote road safety, and ensure that our national road network continues to serve the needs of our economy and our people for generations to come.

I thank you.

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