NamWater’s trade debtors surged to N$2.062 billion as of 31 March 2024, a significant 18% increase from the previous year, the company’s integrated report shows.
According to the report, 50 of the 55 local authorities rely on NamWater for water, but payment delays from these authorities, driven by economic challenges and rising default rates, have significantly contributed to the Corporation’s increasing trade debts.
Despite efforts to address this, the consistent failure to settle monthly consumption remains a major issue.
“Debtors’ collection period has increased over time. Total gross trade debtors stood at N$2.062 billion as of 31 March 2024 (2023: N$1.741 billion). This represents a year-on-year increase of 18 per cent,” the report read.
NamWater further reported that Government institutions, especially in decentralised areas like border posts, require new water supply methods to meet the growing demand.
However, late payments from several agencies have complicated NamWater’s efforts to maintain a steady cash flow.
The Corporation said it is working closely with regional councils and government bodies to devise strategies to improve payment processes for water services.
Furthermore, mines and industries account for a significant portion of NamWater’s supply. However, balancing the demand for water from these sectors while prioritising human consumption remains a challenge.
“Thirty-three percent of the water supplied to mines in Namibia comes from the Water Utility. Since the Corporation must balance the sustainability of the available resources and the demand for these mines, this task is frequently tricky,” the report read.
Furthermore, although NamWater’s mandate does not explicitly include supplying individual retail customers, the growing demand from peri-urban areas has led to a significant increase in direct service provision.
From just 839 retail customers in 2006, NamWater now serves over 54,000 customers, necessitating a focus on efficient resource management and customer service.
In response to rising default rates, NamWater said it is implementing interventions such as the installation of prepaid water meters for customers identified as high-risk defaulters.
The Ministry of Urban and Rural Development has committed to providing funds to support this project, which aims to reduce the impact of mounting trade debts on the Corporation’s operations.
