Swakopmund residents face 5% tariff hike

Swakopmund residents are set to pay more for municipal services after council backed a 5% tariff increase for the 2026/2027 financial year, despite concern that households are already under pressure from rising living costs.The decision was taken during an ordinary council meeting on Thursday, 7 May, where six of the 10 councillors voted in favour of implementing the increase.One councillor voted against the proposal, arguing that fuel prices, inflation and broader economic conditions are already weighing heavily on residents.The increase applies to service-related tariffs and is expected to affect municipal charges linked to refuse removal, sewerage and other services. Water increase will depend on the outcome of negotiations between the council and NamWater.Senior citizens are expected to be spared from the increase, with council recommending that their current tariffs remain unchanged.The tariff increase comes despite the municipality proposing a slightly smaller operational budget for the coming financial year.Council approved a proposed operational budget of N$600.267 million for 2026/2027, compared to N$602.976 million in the previous financial year. The capital budget has been reduced more sharply from N$131.182 million to N$104 million.According to council management committee chairperson Angula Shivute, the reductions are “not reflective of moderated service ambition, but rather of deliberate fiscal prudence”.He said the lower figures are the result of cost-containment measures, rationalisation of non-essential expenditure, improved operational efficiencies and a prioritisation model focused on essential infrastructure.Large sumsEmployee-related costs remain the municipality’s largest operational expense at N$314.532 million, representing 52.4% of total expenditure.Salaries, wages and allowances alone account for N$244.6 million, or 40.7% of the operational budget.Bulk water purchases remain another major cost driver at N$94 million. General expenses amount to N$133.747 million, while repairs and maintenance receive N$32.753 million.The municipality’s main revenue source remains assessment rates at N$201.551 million, followed by water sales at N$86 million and basic charges at N$55 million.Council documents show that exchange revenue, or income generated through municipal services, makes up 63% of municipal revenue.Although the capital budget has been reduced, infrastructure remains the municipality’s main spending priority.Roads and streets infrastructure will receive N$25 million, while wastewater infrastructure has been allocated N$22.5 million and water infrastructure N$15 million.Together, these three sectors account for N$62.5 million, representing 60% of the total capital budget.Environmental sustainability projects remain a stated focus, with N$7.1 million allocated to solid waste management, N$2 million to beach stabilisation and N$2 million to environmental impact assessments.The capital budget also provides N$3.95 million for public buildings, N$7 million for upgrading bungalows, N$2 million for the aerodrome, N$500 000 for upgrading cemeteries, N$20 million for upgrading parks and gardens, and N$2.5 million for future town planning and long-term urban development.Shivute said the municipality identified revenue under-collection, inflationary pressures and delays in capital projects as key risks for the coming financial year.He noted that these risks would be addressed through monthly monitoring and enforcement, expenditure controls, improved planning and project oversight.

Swakopmund residents face 5% tariff hike

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Namibian Sun 2026-05-11

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Swakopmund residents face 5% tariff hike

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Namibian Sun 2026-05-11

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