NIDA leaves SMEs high and dry for 100 days

Businesses operating at the Karakulia Industrial Park in Swakopmund have endured 100 consecutive days without running water due to the Namibia Industrial Development Agency's non-payment of municipal bills.The Namibia Industrial Development Agency (NIDA) is a state-owned enterprise under the Ministry of International Relations and Trade.This latest water cut began on 2 March and follows a series of prolonged disruptions over the past year. Tenants report being without water for at least 153 days since 2024, including a stretch in December, during the peak tourist season. A regular local arts, crafts, and produce market hosted at the centre was also left without water at that time, affecting both vendors and visitors.Karakulia Industrial Park houses several small and medium enterprises, including the well-known African Leather Creations, Karakulia Weavers, a local art studio, a driving school, and other businesses, some of which draw domestic and international tourists. Tour buses often stop at the centre, where visitors expect functioning services and access to Namibian-made goods.“We’ve had to collect dozens of 25-litre canisters of water twice a week just to keep gardens alive, run bathrooms, and conduct basic operations.“Tourists arrive needing basic services, and we have to send them next door to use the toilet,” a tenant representative said. A group of tenants lodged a formal complaint on 17 April, reporting that they had gone for 126 days without water in the preceding six months alone. The letter cited "chronic and ongoing disruption of essential water services" and a broader pattern of "neglect and lack of maintenance" by NIDA. The complaint also highlighted that the state of disrepair at the park reflects poorly on Namibia’s business environment and tourism appeal.“Despite repeated efforts to resolve the issue, including numerous unanswered emails directed to NIDA, no meaningful response or remedial action has been received,” the letter states. “There has been a clear lack of transparency, accountability and urgency in redressing these failures,” the letter said.Tenants say the situation has compromised health and safety standards, created operational instability, and placed an unsustainable burden on their staff. They argue that it undermines the purpose of NIDA, which was established to support SME development.They also lament that a state agency tasked with promoting industrialisation and enterprise is now accused of obstructing the survival of the businesses mandated to support. NIDA’s regional property manager for Erongo, Heikkie Ndipwashimwe, acknowledged the problem and said efforts are ongoing. “Yes, there are issues, and we are working around the clock to find solutions,” he said.Ndipwashimwe confirmed that the accumulated water bill is now more than N$142 000. He further said the Swakopmund Municipality supplies water in bulk to the entire park and cuts off supply when monthly payments are missed, even if only some tenants default.He added that while some tenants are up to date, others have not adjusted their rent payments in line with escalating costs, resulting in arrears. This, he said, creates collective consequences. “If the bills were settled by the tenants, the water could be reconnected the next day,” he said.NIDA is reportedly in talks with the municipality about installing individual water meters for each unit to prevent park-wide disconnections in future. “We do have good tenants, and we want to maintain good relationships,” Ndipwashimwe said, adding that debt collectors have also been appointed in some cases.He further noted that similar issues exist at other NIDA-owned properties countrywide, and that some disputes are currently with legal representatives.“If NIDA had just responded 100 days ago, maybe we could have avoided all of this,” one said. “But they didn’t, and now our businesses and livelihoods are suffering.”They are calling on the ministry to investigate the matter. Their demands include immediate resolution of water supply disruptions, a complete maintenance plan for the site, and written accountability from NIDA.

NIDA leaves SMEs high and dry for 100 days

Comments

Namibian Sun 2025-05-13

Please login to leave a comment

NIDA leaves SMEs high and dry for 100 days

Comments

Namibian Sun 2025-05-13

Please login to leave a comment

Login