Dry taps loom at Rundu, Rehoboth, Khorixas, Otavi, and Keetmanshoop over mounting debts

Rundu, Rehoboth, Khorixas, Otavi and Keetmanshoop are among the top five towns in Namibia facing dry taps due to skyrocketing water debt.

These local authorities are scrambling to address their debt with the Namibia Water Corporation (NamWater) after they were warned against potential service disruptions.

The water utility is owed a combined N$641.1 million by these towns, with Rundu owing N$333.9 million, Rehoboth N$108.4 million, Khorixas N$71.7 million, Otavi N$70.5 million, and Keetmanshoop owing N$56.6 million.

NamWater is owed N$2.4 billion in total, when adding the debt of other municipalities, town councils, individuals, village councils and rural water communities.

Municipalities, town councils and village councils owe N$1.13 billion, while the bill of private consumers stands at N$341 million, and rural communities – N$676 million.

NamWater yesterday warned that these accounts should be settled or stricter measures would be implemented.

“To prevent potential service disruption and ensure continued water provision, NamWater urges all debtors – including local authorities, government institutions, industries, and private consumers – to settle their outstanding accounts,” NamWater spokesperson Lot Ndamanomhata said yesterday.

Rundu Town Council chief executive Olavi Nathanael yesterday said the council will make a council resolution committing to payments on a monthly basis.

Rundu’s water bill is currently the highest among local authorities at almost N$334 million.

“Unfortunately, the council meeting did not take place, but that is our commitment to say while we’re looking for a long-term intervention, we just have to commit to paying religiously now,” he said.

Nathanael said the payments may not amount to the full outstanding amount.

“Just to keep the liquidity of the company going,” he said.

Nathanael called out NamWater for not honouring its side of the deal with the government grant.

“There is a grant they collected on behalf of local authorities, so we can look into modernising the water infrastructure,” he said.

The Ministry of Urban and Rural Development made N$250 million available to help local authorities pay off their debts incurred to NamWater during the Covid-19 pandemic.

The second-highest debtor is the Rehoboth Town Council, at N$108 million.

Rehoboth town council spokesperson Desire Pieters yesterday said the council is working on finding an amicable solution.

“The mayor and management had a consultative meeting with NamWater last Monday where various interventions were discussed,” she said.

Pieters committed to communicating the decision once the council takes one.

NamWater in its statement says it has reached an agreement with the Khorixas Town Council, which has the third-highest water service debt at N$71.7 million.

“The council has an intervention agreement with NamWater,” the statement reads.

Otavi chief executive Wodibo Haulofu said he would respond to The Namibian at a later stage.

This town’s debt stands at N$70.5 million.

NamWater’s debt book showed a 16% increase from the N$2.1 billion recorded in June 2024 to N$2.4 billion.

Ndamanomhata said NamWater will be forced to take measures to recover funds and ensure service continuity.

“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,” he said.

Ndamanomhata said persistent financial strain is hindering the expansion of water services to underserved communities.

Last year, the parliamentary standing committee on human resources and community development conducted public hearings on water and electricity debt write-offs for local authorities.

The hearings were the result of a motion tabled by the Landless People’s Movement’s Henny Seibeb in September 2022 seeking to address strategies to permanently write off the water and electricity debts of local authorities.

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