Rundu buried under N$588m debt, crippling services
CEO laments ‘culture of non-payment’
The Rundu Town Council is struggling to deliver basic services as residents’ unpaid bills have soared to over N$588 million, according to CEO Olavi Nathanael.
In a telephone interview with Namibian Sun this week, Nathanael said the town’s financial sustainability is at risk because a majority of residents are not paying for municipal services, undermining council’s ability to settle its own debts and invest in infrastructure.
“The community debt grew to about N$588 million by June 2025. Every year, our debt book increases by almost N$500 million,” he said. “As much as we want to invest in the residents, the residents are not paying and that compromises service delivery.”
The council itself owes more than N$300 million to NamWater, Namibia’s bulk water supplier, further deepening the town’s financial pressure.
Non-payments biggest hurdle
Nathanael explained that council’s main income streams include rates and taxes, occupational rights for informal settlements and service charges for water and sanitation.
“In informal areas, council has already approved a system to levy occupational rights, but we first need to do awareness and structure numbering before it starts,” he said.
However, the main obstacle, he added, is “the culture of non-payment”.
“We understand the community that complains about poor service, but it’s the same community that doesn’t pay for those services. We’re challenged,” he said.
Services stall
Nathanael said that road upgrades, street lighting and sewer expansion projects have all slowed due to lack of funds. “The government gives us a small budget, but it’s not enough. For service delivery to improve, we must collect revenue directly from the residents,” Nathanael stressed.
He said while other towns are improving because residents there honour their municipal obligations, Rundu’s development remains constrained.
Efforts
Nathanael said council has explored partnerships for infrastructure investment, including with the urban and rural development and mines and energy ministries.
“We electrified about 150 houses in Dama Extension 6, and we’re working on new connections in Dama 5 and 7, as well as KSW 10 and 15,” he said. “Through the ministry, we are also bringing roads, water, and sewer to peri-urban areas – but this is being done in phases.”
He added that council’s debt collection has been slow after its contract with a private debt collector ended up in court. “We now have one person making calls to debtors, but that’s not making a big difference,” he said.
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In a telephone interview with Namibian Sun this week, Nathanael said the town’s financial sustainability is at risk because a majority of residents are not paying for municipal services, undermining council’s ability to settle its own debts and invest in infrastructure.
“The community debt grew to about N$588 million by June 2025. Every year, our debt book increases by almost N$500 million,” he said. “As much as we want to invest in the residents, the residents are not paying and that compromises service delivery.”
The council itself owes more than N$300 million to NamWater, Namibia’s bulk water supplier, further deepening the town’s financial pressure.
Non-payments biggest hurdle
Nathanael explained that council’s main income streams include rates and taxes, occupational rights for informal settlements and service charges for water and sanitation.
“In informal areas, council has already approved a system to levy occupational rights, but we first need to do awareness and structure numbering before it starts,” he said.
However, the main obstacle, he added, is “the culture of non-payment”.
“We understand the community that complains about poor service, but it’s the same community that doesn’t pay for those services. We’re challenged,” he said.
Services stall
Nathanael said that road upgrades, street lighting and sewer expansion projects have all slowed due to lack of funds. “The government gives us a small budget, but it’s not enough. For service delivery to improve, we must collect revenue directly from the residents,” Nathanael stressed.
He said while other towns are improving because residents there honour their municipal obligations, Rundu’s development remains constrained.
Efforts
Nathanael said council has explored partnerships for infrastructure investment, including with the urban and rural development and mines and energy ministries.
“We electrified about 150 houses in Dama Extension 6, and we’re working on new connections in Dama 5 and 7, as well as KSW 10 and 15,” he said. “Through the ministry, we are also bringing roads, water, and sewer to peri-urban areas – but this is being done in phases.”
He added that council’s debt collection has been slow after its contract with a private debt collector ended up in court. “We now have one person making calls to debtors, but that’s not making a big difference,” he said.
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