Namibia road funding gap narrows to N$2.3 billion
Road Fund Administration adjusts user charges and seeks market borrowing to fund critical projects.
Namibia's road maintenance funding shortfall has decreased from N$3.6 billion to approximately N$2.3 billion. Road Fund Administration CEO Ali Ipinge stated yesterday that this reduction is still insufficient to maintain the nation's roads adequately. The figures were shared at a stakeholder consultation for the RFA's 2027/28–2031/32 Business Plan held at the Windhoek Country Club Resort.
Progress in narrowing the gap stems from a 10% to 20% adjustment on various Road User Charges, with 30 cents of a N$1.60 per litre fuel levy increase now implemented. This 30 cents is specifically allocated to 14 government priority road projects, including rural access and feeder roads connecting communities to essential services. The RFA is also seeking N$1.5 billion in market borrowing against this levy to accelerate these priority works.
The RFA has submitted a request for over N$1 billion in flood damage assistance to the finance ministry, following the January to April 2025 floods that affected local authorities. While a government response is pending, some allocations have been made for flood damage repairs. Challenges persist, including rising maintenance costs, aging infrastructure, and climate-related events, prompting research into alternative funding and resilient road materials.
Why it mattersNamibians face continued challenges with road conditions due to insufficient maintenance funding, impacting travel and access to services.