Fuel smuggling leads to significant government revenue losses because it bypasses official channels, evading taxes and levies.

Namibia's National Energy Fund has, in the past five years, lost N$300 million in revenue due to fuel smuggling.

This came to light during a discussion organised by the Ministry of Industries, Mines, and Energy at the Ongwediva Annual Trade Fair.

The illegal practice has been dubbed 'Ngungula' in the northern regions because it is an act carried out on the run, as it is illegal. Fuel is brought into Namibia illegally in containers and is sold cheaply. Fuel that is smuggled into Namibia from Angola is sold at prices significantly lower than the prices charged at service stations.

While purchasing illegal fuel may be more cost-effective, it has a significant negative impact on the economy.

Putting money into the coffers of the National Energy Fund is not the only issue; it also deprives citizens of access to basic services and infrastructure development.

Those who do the maths and are in charge of research and planning are quite clear about the impact.

Often, people complain about potholes because these road defects damage vehicles, cause accidents, and create traffic problems.

This is because they have a direct negative impact on daily lives, as the potholes lead to vehicle repairs. But the funds required to keep roads in good condition come from the National Energy Fund.

The National Energy Fund has been monitoring the ngungula situation since 2018, particularly in the Oshana, Ohangwena, and Omusati Regions. Pumping illegal fuel into the system at large volumes has impacted the Fund and prevented it from equalising fuel prices across the country.

Authorities estimate that millions of dollars' worth of fuel have been smuggled across the border over the past two years, but the practice has far-reaching consequences on the economy and the people's well-being.