Budget cuts threaten Namibia’s road network as deficit tops N$2bn

The Roads Authority (RA) has warned of critical infrastructure decline due to a significant reduction in the approved budget for road maintenance.

For the fiscal years 2022/2023 to 2024/2025, the required maintenance budget was approximately N$5.6 billion, but only N$2.8 billion was approved, leaving a deficit of over N$2 billion. 

Speaking at the Road Sector Policy Conference on Monday, RA’s CEO, Conrad Lutombi, said this shortfall has severely impacted crucial maintenance activities, leading to a deterioration in the condition of both paved and gravel roads.

In recent years, the percentage of paved roads in poor to very poor condition increased from 10.6% to 17.9%, while the condition of gravel roads worsened from 39% to 47.4%.

“The approved budget has continued to decline, with the 2024/25 fiscal year experiencing a deficit/underfunding of over N$2 billion. This reduced funding has adversely impacted the necessary maintenance activities of both unpaved and paved roads across the country. Moreover, the insufficient budget allocations for re-graveling and resurfacing the national road network over the years have led to a decline in road conditions,” he said.

He further explained that without sufficient and sustainable funding, the nation’s primary road network is at risk, which could have a ripple effect across industries dependent on reliable transportation.

He called for increased collaboration between government, the private sector and international organisations to establish sustainable financing mechanisms, such as public-private partnerships, to secure the future of Namibia’s roads.

“We need to establish sustainable financing mechanisms, whether through Public-Private Partnerships or increased government allocations, to ensure that our road network is both resilient and future-ready. These are among the discussions that we look forward to during the course of this conference,” he said.

The RA emphasised that inadequate funding not only threatens road quality but also hampers economic growth, trade and access to essential services.

Population growth, urbanisation, and economic expansion are placing immense pressure on Namibia’s road network, making investment in road infrastructure more critical than ever.

Speaking at the same event, Minister of Finance and Public Enterprises Ipumbu Shiimi highlighted the pressing issue of declining road user fees and called for innovative funding solutions.

Furthermore, he highlighted the importance of identifying other modes of transport for goods to alleviate pressure on the roads and extend their lifespan. 

“We must seek solutions to the declining contributions from road users and explore alternative funding models tailored to Namibia’s needs. Additionally, we must identify other modes of transport for goods to reduce the pressure on our roads and extend their useful life,” Shiimi said. 

The Road Fund Administration has previously warned that the condition of the country’s road network and the growing funding gap are expected to drive vehicle maintenance costs for Namibians to a staggering N$42 billion by 2028. 

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