60% municipal debt reduction signals recovery
The City of Windhoek has recorded a 60% reduction in municipal debt owed by government institutions, with the outstanding balance decreasing from approximately N$67 million in May 2026 to N$27 million in June 2026.
Officials said the earlier figure of N$20 million did not include amounts that became due on 20 June 2026, the due date for corporate accounts, which explains the difference between previously communicated figures and the latest debt position. The updated figures reflect a more complete account of obligations owed by state entities to the municipality.
Over the same period, the City’s overall debtors’ balance declined from N$912 million to N$845 million, indicating a broader improvement in revenue collection beyond government institutions. The reduction forms part of ongoing efforts to strengthen financial sustainability and improve compliance among account holders.
The City said the directive issued by the Honourable Minister has contributed positively to the improvements recorded and welcomed the development. It encouraged all residents and customers with outstanding accounts to honour their financial obligations, stating that consistent payments are essential to maintaining service delivery.
The municipality said timely payment of municipal accounts enables it to continue providing sustainable, efficient and uninterrupted services to all residents. Revenue collected from ratepayers and service users is used to fund essential services, including water, electricity, refuse removal and road maintenance.
Earlier this month, Sankwasa James Sankwasa told Namibian Sun that ministries and government institutions are required to pay for services rendered by local authorities and are not exempt under existing legislation. “There is no exemption. Ministries or government institutions are required to pay for services rendered by local authorities. Neither the Local Authorities Act nor the State Finance Act, which authorizes the annual budget that subvents state money to various local authorities, grants exemptions,” he said.
He said hospitals can make arrangements for monthly settlement of outstanding and current bills with respective local authorities, but stressed that such arrangements should not be used to avoid payment obligations. “We must not destroy the country because of understandable but self defeating reasons,” he said.
Sankwasa said criticism of local authorities over poor service delivery is often linked to limited financial resources, which are affected by non-payment. “All of us politicians, the general public, including you journalists, are up in arms against local authorities for poor service delivery, poor roads, and potholes that are never attended to year in and year out because local authorities do not have money.
And now when local authorities must collect their money, some people and some journalists want to see such steps as uncalled for. What do we Namibians really want to be done in this country?” he said.
