Local authorities owe Namwater more than N$7.5 billion, with some diverting government funds meant for prepaid water meters to other uses, Urban and Rural Development Minister James Sankwasa revealed in the National Assembly.
The Opuwo Town Council owes about N$60 million to NamWater amid critical water challenges, which continue to affect households, businesses, and overall economic productivity.
NamWater is owed a total of N$2.8 billion by various entities, an amount that poses a serious risk to national water security.
It is, therefore, urgently calling on local authorities, government institutions, industries and all consumers to settle their accounts.
A combined debt of N$15 million owed by residents of Kalkfeld to the Otjozondjupa Regional Council has led to water cuts for those in arrears.
This was confirmed by Regional Council Chairperson Marlene Mbakera, who says the debt hampers service delivery and development in the settlement.
A significant portion of government debt is due for repayment over the medium term.
The N$14.3 billion Eurobond, due on October 29, 2025, is the largest single-day debt maturity in the history of Namibia.
The Bank of Namibia (BoN) projects an increase in the government's income as well as a narrowing of the budget deficit for the 2023–24 financial year.
Over a hundred residents of Katutura in the capital, through a committee, are demanding from the City of Windhoek that they write off their water and electricity debts.
The committee also wants the removal of Red Force as a debt collector.
A local economist says Namibia is unlikely to default on its foreign debts in the medium-term, although there is a need to aggressively stimulate the economy to curb the impact of low taxes and rising inflation on its fiscus.
