Tsumeb tables N$267,4m budget amid challenges

The Tsumeb municipality has tabled its budget for the 2024/25 financial year, amounting to over N$267 million.

This includes a balanced budget of N$132,4 million.

Tsumeb municipality finance manager Karolina Damases presented the budget during the Oshikoto Regional Council ordinary meeting at Omuthiya last week.

She said the municipality is experiencing a number of financial challenges as it is unable to settle its accrued debt amounting to N$4,3 million, after failing to honour its yearly 5% contribution to the regional council.

“The budget made provision for a 5% contribution to the regional council of N$695 383 in the 2024/25 financial year.

“This represents an increase of 5% from the N$696 507 in the 2022/23 financial year. The council has committed to pay the contribution payable for the 2023 and 2024 financial years in a letter dated 9 February 2024, which was and continues to be effected accordingly.

“The municipality also requested the accrued debts amounting to N$4,3 million to be written off in a letter dated 13 July 2023, for which we are still awaiting a response,” she said.

Damases said an amount of N$19,5 million will be funded from council capital reserves for the construction of the sand filtration plant.

“This project is aimed at addressing the contamination of our water sources, which is currently a challenge. In total, the project will cost us N$36,8 million, of which the shortfall is expected also to be funded by the central government.

“The council has already procured the service from Natasi Water Technologies and JV Nexus Civils. The site handover was already done on 7 May,” she said.

Damases said the municipality’s expenses, amounting to N$27,1 million, could be covered by external loans.

She said an amount of N$134,9 million has been budgeted for the capital projects.

“The successful implementation of the capital budget is largely dependent on the extent that the Tsumeb community settles its debts for services rendered by the municipality and grants by the central government.

“An amount of N$82,9 million from grants will be funded by the central government,” she said.