The Namibia Water Corporation Ltd (NamWater) has revealed that outstanding payments for water services have surged to N$2.4 billion as of February 2025, marking a 16% increase from N$2.1 billion recorded in June 2024.
NamWater’s Head of Public Relations and Corporate Communications, Lot Ndamanomhata, said the growing debt burden poses a significant risk to the sustainability of the corporation’s revenue collection.
“NamWater is a state-owned enterprise, meaning it is 100% government-owned. It receives no subsidies from its shareholder and has not had a tariff adjustment in the last five years. Revenue collections fluctuate based on water consumption and payment compliance. The growing debt burden—currently at N$2.4 billion—poses a significant risk to sustainable revenue collection. Meanwhile, the cost of providing water—particularly energy costs—continues to rise,” Ndamanomhata said.
As of February 28, 2025, local authorities accounted for N$889 million of the total outstanding debt. Rundu Town Council remains the largest defaulter, owing N$333 million, followed by Rehoboth Town Council at N$108 million and Khorixas Town Council at N$71 million.
Private consumers’ debt has reached N$341 million, while rural water communities owe N$676 million, according to NamWater data.
Ndamanomhata warned that the continued failure to settle outstanding water bills severely impacts NamWater’s ability to operate efficiently.
“The continued failure to settle water bills severely affects NamWater’s ability to operate effectively. Unlike profit-driven businesses, NamWater relies solely on revenue from water sales to maintain operations, infrastructure, and service delivery,” he said.
He further highlighted that while the Namibian government, through NamWater, provides water to 87% of the population, the increasing financial strain caused by unpaid debts could hinder future expansion efforts.
“NamWater is a bulk water supplier that relies on revenue from water sales to maintain operations, upgrade infrastructure, and expand access. When local authorities or other customers fail to settle their debts, it directly affects our ability to provide reliable services,” Ndamanomhata added.
