The City of Windhoek has implemented a requirement for its debt relief programme, making it mandatory for participants to have prepaid meters for both water and electricity.
As part of its commitment to fiscal responsibility and equitable resource management, the municipality aims to alleviate financial strains by writing off N$524 million in accumulated interest from residents’ debts.
The emphasis on prepaid meters underscores the City’s efforts to promote sustainable consumption practices while offering pensioners and residents a viable pathway to financial stability.
This comes as the municipality’s plan includes a 100% write-off on both the capital and interest on debt for pensioners, benefitting 26,118 individuals with a monetary value of N$223 million.
In addition to the pensioners’ relief, other residents will benefit from a 50% write-off on interest, while businesses will also enjoy a 50% reduction.
“The registration period, spanning from February 15 to April 15, 2024, is open to pensioners aged 60 years and older as of November 30, 2023. All eligible pensioners are encouraged to participate,” the City revealed in a notice on Friday.
However, applicants seeking eligibility for the debt write-off must adhere to specific conditions set forth by the municipality.
These include possessing prepaid meters for water and electricity or having applied for them.
“Applicants must agree to cover the installation expenses of prepaid meters, either upfront or through instalments over a five-year period. Non-compliance with the installation of prepaid meters renders applicants ineligible for the debt write-off, subjecting them to the municipality’s Credit Control Policy,” the City said.
Moreover, only outstanding balances on accounts as of 30 November 2023, will be considered for write-off, while current account balances from 1 December 2023, excluding interest, must be settled in full.
“In instances of estate accounts, the primary account holder must have been a pensioner aged 60 or older at the time of death. Pensioners aged 60 years and older as of November 30, 2023, are encouraged to actively participate in the registration process,” the City noted.
Meanwhile, during registration, pensioners have the option to apply for prepaid meters on-site.
However, non-pensioners and businesses eligible for the 50% interest write-off don’t need to register, as the interest will be automatically written off.
This comes after City of Windhoek Spokesperson Harold Akwenye told The Brief that despite the substantial debt, the city’s assets, valued at more than N$15 billion, provide a solid financial foundation.
This includes addressing debts such as free water debt, which amounted to N$60 million on 30 June 2022, and N$105 million on 30 June 2023.
To address its ballooning debt, the City of Windhoek enlisted the services of a debt collector, a development that has, however, drawn anger from residents amid concerns that the city charges 20% per year on arrears while the debt collector charges 10% on amounts paid in debt.
The City has, however, maintained that despite objections from the public, it will continue with its current debt collection.
Akwenye said to manage debts, the City is working towards transitioning to a fully prepaid business model, particularly for electricity services.
