RFA faces N$4.5 billion funding deficit

Namibia’s road infrastructure is facing a deepening financial crisis, with the Road Fund Administration (RFA) confirming a N$4.5 billion shortfall that threatens the sustainability of the national network.RFA chief executive Ali Ipinge said the situation reflects a “continued historical trend of suboptimal funding levels,” warning that urgent reforms are needed to protect the country’s road assets. “Due to revenue constraints, the RFA was able to allocate only N$3.7 billion, resulting in a funding shortfall of N$4.5 billion. Consequently, only 45% of total funding needs could be met, underscoring the urgency for alternative financing mechanisms and strengthened stakeholder collaboration to preserve the national road network,” he said.For the 2025/26 financial year (1 April 2025 – 31 March 2026), Approved Authorities submitted a consolidated funding requirement of N$8.2 billion, of which the Roads Authority accounted for N$6.2 billion (72.6%). However, due to revenue constraints, the RFA could allocate only N$3.7 billion, covering less than half of the country’s needs.The RFA’s income is primarily derived from Road User Charges (RUCs), which fund the maintenance and rehabilitation of Namibia&#039;s roads. The fuel levy, charged on every litre of petrol and diesel sold, remains the main source of revenue and is paid directly by fuel wholesalers to the Fund.To support revenue growth and narrow the gap, the RFA has periodically reviews and adjusts charges. In the 2024/25 financial year, tariff increases included a fuel levy hike of 45 cents per litre, a 20% increase in cross-border, mass-distance and abnormal load fees, and a 10% rise in road carrier permits. Vehicle registration fees remained unchanged. The fuel levy was raised by 25 cents per litre on 2 October 2024 and by 20 cents per litre on 5 March 2025, bringing it to N$2.43 per litre. Total revenue is projected to surpass N$4.2 billion by FY 2026/27.&#039;Severely underfunded&#039;Despite these adjustments, Ipinge warned that maintenance and rehabilitation remain severely underfunded, leading to gradual road deterioration. “Relying on annual fuel levy increases is not sustainable in the long term. Revenue sustainability remains a key concern due to heavy dependence on the fuel levy. To mitigate this risk, we are exploring alternative and sustainable revenue sources, including tolling, distance-based charges, and a potential levy on electric vehicles,” he said.Truck and cargo volumes continue to rise as Namibia positions itself as a regional logistics hub. For the financial year ending 31 March 2024, the RFA collected N$2.1 billion in fuel levies, N$185 million in Cross-Border Charges, and N$47.6 million in Mass Distance Charges for foreign vehicles.Meanwhile, the Roads Authority (RA) warns that persistent underfunding is accelerating road deterioration. Its Integrated Strategic Business Plan (2022/23–2026/27) notes that 21% of bitumen surfacing on national roads is now over 10 years old, providing inadequate protection and skid resistance. Gravel roads are also in crisis: 49% are rated poor to very poor, with only 16% of wearing course material remaining, leaving underlying rock exposed and compromising safety.According to the Road Management System, annual minimum maintenance requirements have climbed to N$3.9 billion, yet the RFA can only fund about N$2.8 billion, even with loan financing. The RA’s Business and Financial Plan (2024/25–2028/29) shows the RFA covers nearly 99% of its N$1.3 billion maintenance budget, with the government contributing just N$15 million.Minimal fundsFormer Lüderitz mayor Phil Balhao said municipalities struggle to maintain roads with minimal funds. “It’s clearly visible as the prevalence of potholes has become a national issue,” he said. “Additional rates through tolls for heavy goods vehicles and abnormal loads would be beneficial. The RFA currently raises only about 50% of required funding through levies and taxation. Relying on frequent fuel price hikes is not sustainable.”At Walvis Bay, where truck volumes have surged, the municipality has partnered with the Roads Authority and RFA on a N$400 million road rehabilitation project covering 17 key truck routes. Mayor Trevino Forbes said the four-year project, launched in 2024, demonstrates collaboration to support the town’s logistics role. “Walvis Bay is a vital hub for regional trade and logistics. We are committed to ensuring our roads are safe, reliable, and capable of supporting economic growth,” he said, adding that pothole repairs and general upkeep continue on major routes such as Nangolo Mbumba Drive, Sam Nujoma Avenue, and Hanna Mupetami Road.Logistics expert and PhD candidate Mufaya Bruce Liswani warned that the current system does not adequately capture the cost of road damage caused by heavy vehicles. “Foreign trucks play a vital economic role, but their impact on infrastructure isn’t matched by their financial contribution. The Mass Distance and Cross-Border frameworks must be reviewed and benchmarked against actual road usage, with stronger enforcement. Lawmakers must act before the situation escalates further.”Truck driver Andrew Angombe urged the government to prioritise repairing key routes such as Arandis–Usakos, Walvis Bay, and Rosh Pinah–Keetmanshoop, citing safety risks. At the coast,Namport CEO Andrew Kanime said truck traffic has more than doubled, from 300 to 750 trucks daily, stressing the strain on infrastructure and the economic potential. “Our new port gate project, with five entry lanes and four exit lanes, is part of expanding capacity. Trucks bring business, employment and revenue, benefiting not just Namport, but Walvis Bay, Erongo and Namibia as a whole."

RFA faces N$4.5 billion funding deficit

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Namibian Sun 2026-04-30

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RFA faces N$4.5 billion funding deficit

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Namibian Sun 2026-04-30

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