Urban and rural development budget highlights for the 2025/26 financial year

Minister of urban and rural development James Sankwasa at the National Assembly, Windhoek, 6 May 2025.

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Vote 17 – 2025/26 financial year budget allocation

Allow me to thank president Netumbo Nandi-Ndaitwah for the trust she bestowed upon me by appointing me to lead the Ministry of Urban and Rural Development. I am grateful to my predecessor, Erastus Uutoni, and Nghidinua Daniel, the former executive director, for laying the foundation of this budget.

I wish to thank and applaud the minister of finance and the director general of the National Planning Commission and their teams for coming up with a budget that focuses on prioritising key national development demands. I equally want to register my gratitude to my deputy, Evelyn !Nawases-Taeyele, and my team from the ministry, as well as regional and local authority councils and the National Housing Enterprise, for their continued dedication and commitment to serve.

Having said that, chairperson of the whole house committee and members:

It is my distinct honour and privilege to present to this august house the budget allocation for Vote 17. As always, this opportunity affords this august house a chance to assess, evaluate and validate the implementation of activities and programmes that the ministry had promised to undertake during the previous financial year, and to discuss the activities and programmes to be implemented in the 2025/26 financial year.

In this regard, I am taking the floor to introduce and seek the support of this august house for the budget allocation to Vote 17 totalling N$2 697 817 000. This year’s allocation represents a 4% increase from the last financial year’s budget allocation.

This year’s budget allocation is broken into an operational budget of N$1 442 848 000 and a development budget of N$1 254 969 000 in four programmes, namely:

1. Regional and local government and traditional authorities
   
2. Enhancement of public participation in development planning and decision-making (decentralisation)
   
3. Support to urban and regional planning, infrastructure and housing development
   
4. Rural development
   

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Programme one: Regional and local government and traditional authorities

An amount of N$1 257 551 000 is allocated to this programme. A large portion of this allocation (N$931 008 000) is for subsidies that will go towards supporting and enhancing the operational and service delivery capacity of regional councils, local authorities, and recognised traditional authorities.

The remainder of the allocation (N$326 543 000) will be used for governance and development-enhancing activities, including:

• Finalisation of legal amendments to the Local Authorities Act, the Council of Traditional Leaders Act and the Traditional Authorities Act;
  
• Finalisation of the Urban Land Reform Policy and Strategy;
  
• Revision of the Local Economic Development White Paper into a comprehensive National Regional and Local Economic Development Policy with an implementation and monitoring & evaluation plan;
  
• Upgrading and construction of ten open markets in Bukalo, Eenhana, Keetmanshoop, Okakarara, Omaruru, Omuthiya, Opuwo, Oshivelo Settlement, and Outjo;
  
• Continued development of the newly inaugurated Nkurenkuru Open Market;
  
• N$157 million to assist local authorities with compensation for land incorporated into townlands;
  
• N$10 million to support fire brigade and emergency services.
  

Progress during the 2024/25 financial year included:

• N$113 million paid to regional councils and local authorities for land compensation;
  
• N$4.5 million to Grootfontein Municipality for constructing a fire emergency station;
  
• Fire-fighting training for 21 local authorities staff and gear procurement for 11 local authorities;
  
• Finalisation of stakeholder consultations on the new Land Compensation Policy.
  

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Programme two: Enhancement of public participation in development planning and decision-making (decentralisation)

A budget allocation of N$17 848 000 has been made to fund decentralisation activities, including:

• Handover of gazetted functions to ministries responsible for education, agriculture, justice and health;
  
• Finalisation of the national decentralisation implementation assessment and action plan;
  
• Amendment of the Regional Councils Act;
  
• Enactment of the Regional and Constituency Development Fund Bill and related regulations;
  
• Formulation of the Intergovernmental Fiscal Transfer Policy;
  
• Capacity-building support for regional councils in financial management, human resources, asset management and systems enhancement.
  

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Programme three: Support to urban and regional planning, infrastructure and housing development

This programme aims to enhance national land and housing delivery. Achievements during the 2024/25 financial year included:

• 26 new townships proclaimed;
  
• 1 772 plots fully serviced, with 1 064 in progress;
  
• Formalisation and proclamation of six informal settlements expected to yield 1 007 plots;
  
• 957 housing units constructed through various programmes.
  

An amount of N$1 167 202 000 is earmarked for this programme in the next financial year, forming the largest part of the development budget.

Planned interventions include:

• Massive urban land servicing: 10 000 erven targeted annually (5 000 in Khomas, 5 000 across other regions);
  
• N$445 million to construct 3 000 housing units via government programmes and SDFN;
  
• Mass Housing Development Programme projects in Otjomuise, Opuwo, Swakopmund, Grootfontein and Gobabis;
  
• N$50 million recapitalisation for NHE;
  
• Construction of 250 basic ablution facilities in informal settlements;
  
• N$50 million to support prepaid water meter installations in response to water debt issues.
  

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Programme four: Rural development

The rural development programme has a budget allocation of N$129 603 000. This will support:

• N$37.05 million for rural sanitation via regional councils (749 ventilated toilets built in 2024/25);
  
• N$9.064 million for income and employment-generating self-help projects (175 supported in 2024/25);
  
• N$9.7 million for operations and advisory services at rural development centres;
  
• N$37.025 million for construction work at eight rural development centres: Rupara, Masokotwane, Eembaxu, Ogongo, Snyfontein, Gibeon, Ben Hur, and Okashana.
  

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Policy oversight and supervision

For policy oversight and supervision of core ministry functions and stakeholders’ activities, N$125 612 000 has been allocated.

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Conclusion

I now submit Vote 17 in the amount of N$2 697 817 000 for consideration and approval of this august House.

Thank you.

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