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Home Companies Property

Toll gate – what does it mean for homeowners?

by editor
November 25, 2022
in Property
6
A A

 Living at the right address, in the right location with a good road network will always add value to your property. Namibia is ranked number one in Africa and 21st in the world in terms of quality road infrastructure. 

However, if the government has its way, its citizens will be paying far more for this privilege by introducing a road tolling system. Road tolling is when drivers pay a fee to make use of certain sections of the road, with funds raised used for the road’s upkeep and maintenance. 

Although there are foreign studies to support the idea that toll roads do lead to an increase in development and property values you can’t help, but feel sorry for those who bought property in a different town from where they work, hoping to save money by buying property in smaller less expensive towns like Okahandja and Rehoboth. These already overburdened taxpayers are not only paying more for transport costs, they are now also going to have to pay a premium simply to get to work and back. 

Good infrastructure is a necessity for a better future for our country, but this requirement must not leave us poor, road users already pay taxes and fuel levies every time they fuel their vehicles. One would think that money raised through fuel levies should be more than enough to cover the costs of road maintenance and new infrastructure.

The announcement of the coming toll gates in 23 sections has left a sour taste in many road users’ mouths. One of the primary concerns since the announcement for the proposal is that it will result in a steep increase in the cost of living for all road users, especially workers who live in other towns from where they work. 

The Road Fund Administration (RFA) CEO Mr. Ali Ipinge says introducing a tolling system will have a massive increase in the RFA revenues, by about one third of what they make now. This translates to about between N$500 million to N$750 million per annum.

However, stakeholders and experts say a tolling system would further overburden Namibians who are already battling high food and fuel prices, rising interest rates, inflation, and general cost of living. Nothing has been finalised yet, however, the RFA has promised to launch a nationwide public engagement to sensitise road users on tolling. 

Good roads are important for any economy, and the maintenance of them is no cheap task. However, we need to balance the need for good roads and the road users’ ability to afford tolling fees. Especially now when most households are under a lot of financial pressure. It’s a shame that one will have to pay a premium just to get to work. 

For enquiries text, call or email #yourhomegirl Justina Hamupembe at +264812726001 or email: justina@chili.com.na 

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