NamWater owed over N$2 billion

The Namibia Water Corporation is owed about N$2 billion as of 31 March 2024.

This is an 18% increase from the previous year, a NamWater report shows.

It says 50 out of 55 local Namibian authorities rely on NamWater for water supply.

Payment delays from these authorities, driven by economic challenges and rising default rates, have, however, significantly contributed to the corporation’s increasing trade debts.

NamWater reports that government institutions, especially in decentralised areas like border posts, require new water supply methods to meet growing demand.

However, late payments from several agencies have complicated the corporation’s efforts to maintain a steady cash flow, the report states.

The corporation says it is working closely with regional councils and government bodies to devise strategies to improve payment processes.

Furthermore, mines and industries account for a significant portion of NamWater’s supply, the report reads.

Balancing the demand for water from these sectors while prioritising human consumption remains a challenge, it says.

“Some 33% percent of the water supplied to mines in Namibia comes from the water utility. Since the corporation must balance the sustainability of the available resources and the demand for these mines, this task is frequently tricky,” the report says.

The growing demand from peri-urban areas has further led to a significant increase in direct service provision, the utility says.

From just 839 retail customers in 2006, NamWater’s customer base has grown to over 54 000.

The utility says it is implementing interventions such as the installation of prepaid water meters for customers identified as high-risk defaulters.

The Ministry of Urban and Rural Development has committed to providing funds to support this project.