NamWater Debt Soars to N$2.4 Billion, Raising Concerns Over Water Supply Sustainability

By: Hertha Ekandjo

The Namibia Water Corporation Ltd (NamWater) is facing a worsening financial crisis as outstanding payments for water services have surged to N$2.4 billion as of February 2025.

This marks a 16% increase from the N$2.1 billion recorded in June 2024, posing a serious threat to the long-term sustainability of water supply in the country.

In a statement issued by the company, it noted that the outstanding debt is spread across multiple consumer categories, with municipalities, private consumers, and rural water communities accounting for the largest shares.

The latest figures indicate that municipalities owe N$211 million, while town councils have accumulated a staggering N$776 million in debt. Private consumers currently owe N$341 million, village councils N$146 million, and rural water communities N$676 million.

Local authorities collectively account for N$889 million of the total debt.

Moreover, among the highest contributors to this financial burden are Rundu Town Council, with an outstanding debt of N$333.9 million, followed by Rehoboth Town Council, which owes N$108.5 million, and Khorixas Town Council, with an outstanding balance of N$71.8 million.

NamWater, a wholly government-owned entity, does not receive any subsidies from the state and has not implemented a tariff adjustment in the last five years.

The corporation relies on revenue collection from water consumption and consumer payments to sustain operations.

However, the escalating debt burden is threatening its ability to maintain a stable revenue flow. At the same time, rising energy costs and other operational expenses are placing additional strain on NamWater’s financial stability.