Tsumeb tables N$171,5 million budget to tackle economic challenges

Tsumeb mayor Mathews Hangula on Wednesday announced the town’s annual budget for the 2023/24 financial year, amounting to N$171,5 million.

Hangula said the budget is presented in a challenging local, regional and global economic environment, with persistent increases in the prices of daily essentials.

This places the well-being of the community under threat and has directly impacted service delivery, exerting strain on households and businesses.

“Households are under pressure from the rising cost of living and unemployment remains stubbornly high. The challenge facing the council is to find a balance between the needs of vulnerable residents, future planning and investments that will serve the needs of Tsumeb now, as well as meet the requirements of a rapidly growing town,” he said.

In response to these challenges, the council has set out a vision to develop the town as a well-managed modern city and industrial hub in the Oshikoto region, said Hangula.

A significant focus of the budget is on delivering land and improving service delivery to residents.

The capital expenditure budget for the financial year ending 30 June 2024 stands at N$78 million, representing a substantial increase of 44% compared to the previous financial year.

The allocation for infrastructure projects amounts to N$60 million, which Hangula said will mainly be directed towards servicing Extension 9 at Nomtsoub with water and sanitation, upgrading the Tupperware Reservoir, constructing a water filtration plant and enhancing road infrastructure.

He said one of the notable initiatives undertaken by the council is the completion of the SME Fruit and Veg Hub, scheduled to officially open on 4 August. The market is set to accommodate 105 vendors, including stalls for fruit and vegetables, kapana stalls, SME units and bulk stalls.

“The successful implementation of the capital budget is largely dependent on the extent that the Tsumeb community settles its debts for services rendered by the municipality, as well as subsidies by the central government,” said Hangula.

He said N$17,5 million budgeted for external loans can only be executed once secured through financial institutions.

The proposed tariff increases for the 2023/2024 financial year are as follows:

Refuse (Town): 10%
Sewerage: 0%
Water: 50%
Rates and Taxes: 0%
Building Plan Fees: 5%
Fitness Certificates: 10-20%

The budget also highlights the council’s social responsibility, with grants and donations totalling more than N$26 million, aimed at uplifting the community. Notably, 90% of this amount will cover subsidies for pensioners with property at Tsumeb.

Hangula said the council is committed to delivering better services to deprived communities, ensuring dignified living standards for all residents.

“It remains a challenge to provide serviced land for housing needs, considering the lack of funds and the pace that people are migrating to Tsumeb,” said Hangula.

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