City's cash balloons to N$1.1b

The City of Windhoek’s cash and cash equivalents have grown from N$268 million in June 2023 to N$1.1 billion in June this year, according to chief executive officer Moses Matyayi, marking a dramatic improvement in the municipality’s liquidity position.Matyayi, who assumed office in August 2023, disclosed the figures in an interview with Namibian Sun about the City’s financial position and performance during his three-year tenure.He said the municipality’s liquidity position had improved by 69%, with its current ratio rising from 71 cents to N$1.21 for every N$1 of current liabilities between June 2023 and June 2026.“Over the past three years, revenue increased by 13%, translating into growth of approximately N$616 million," Matyayi said.He said the growth strategy was driven by two key objectives: to improve the municipality’s financial sustainability and to reverse the deficit financial performance experienced over the past decade plus.“The increase in revenue was achieved through moderate tariff adjustments and the systematic elimination of revenue leakages, supported by rigorous monthly performance monitoring,” he said.Matyayi said the improvement in liquidity was reflected in the growth of the City’s cash and cash equivalents.“These funds are currently being maintained as reserves and deployed to finance major maintenance capital projects while supporting the raising of funds for developmental capital projects,” he explained.He said the City expects its liquidity position to improve further once a recently signed land-debt swap with government is implemented.“At implementation of the recently signed land debt swap with the government, the ratio will edge closer to 200 cents, which is our target,” Matyayi said.He said the improvements demonstrated the impact of efforts to strengthen the municipality’s finances.“The substantial improvement in both revenue generation and liquidity demonstrates the effectiveness of the municipality’s financial management initiatives and reflects steady progress towards a stronger and healthier balance sheet, which remains the foundation for sustainable service delivery,” he said.N$660m debt raisedDespite the improved cash position, the City has also turned to debt financing to fund infrastructure and development projects.“In addition to these achievements, the municipality successfully raised N$660 million in debt financing to fund strategic infrastructure and development projects," Matyayi said.“This reflects renewed confidence from lenders, who increasingly view the municipality as a credible and financially stable institution with a proven track record of delivering on its commitments,” he told Namibian Sun.He cautioned against interpreting the improved financial position as meaning that Windhoek’s financial constraints have been overcome.“I believe the City has made progress in strengthening financial management, governance and institutional stability, but I would not suggest that the financial challenge has disappeared.“There is still a substantial gap between what Windhoek needs to invest in infrastructure and what its existing revenue base can sustainably provide,” he said.A strained inheritanceThe disclosure comes against a history of financial pressure at the City.An auditor general report previously highlighted financial weaknesses at the municipality, including a shortfall between current liabilities and current assets as at June 2023.Matyayi said the City he inherited in August 2023 was facing “institutional, infrastructure and financial pressures” accumulated over many years.These included infrastructure maintenance backlogs, pressure on municipal revenue and debt collection, increasing demand for housing and serviced land, rapid growth of informal settlements, ageing infrastructure, and pressure on roads and public transport.The City also faced the cost of providing services to communities that were not yet fully incorporated into the formal municipal revenue base.“We have to provide essential services even when the cost of those services is not fully recoverable from the people who need them most," he said.“At the same time, we have a responsibility to protect the financial sustainability of the institution."

City's cash balloons to N$1.1b

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Namibian Sun 2026-10-07

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City's cash balloons to N$1.1b

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Namibian Sun 2026-10-07

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