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.

Kalkfeld accounts for the highest debt in unpaid rates and taxes.

The inherited debt dates from the time when the settlement was downgraded from village council status in 1995.

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.

Tabling the national budget in the National Assembly, Finance and Public Enterprises Minister Iipumbu Shiimi pointed out strong growth in the gross domestic product, supported by improvements in tax collection measures by the Namibia Revenue Authority. These, he said, have led to significant improvements in several revenue streams. 

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.

In its June 2023 quarterly report, the central bank says the government's debt is expected to decline to 4,6% of the Gross Domestic Product from 5,1% in the previous financial year.

Revenue collection is expected to increase by 16,5% to N$74.7 billion, owing to a significant increase in SACU receipts, coupled with a rise in company and individual taxes as well as value-added tax.

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.

Speaking at a media briefing, the Chairperson of the Committee, Benistus Kandundu, said the City of Windhoek's account estimation policy is old-fashioned and needs to be abolished.

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.

Namibia's persistent droughts and sluggish economic growth has caused a surge in debt due to widening deficits to a record N$128 billion which is 69% of the Gross Domestic Product (GDP) in the 2021/22 financial year.