Erongo: Several local authorities in Erongo have failed to meet their statutory obligation to contribute five percent of their revenue to the Erongo Regional Council (ERC), citing financial constraints, low revenue collection, and mounting infrastructure demands. The issue emerged during budget presentations by local authorities to the ERC, where concerns were raised over growing debt owed by some municipalities and town councils to the regional authority.
According to Namibia Press Agency, during the presentation of the Omaruru Town Council's proposed budget for the 2026/27 financial year, the council's then-Chief Executive Officer, Valentinus Sindongo, acknowledged the local authority's struggle to honor its obligation under the Local Authorities Act. Sindongo revealed that Omaruru currently owes the ERC approximately N.dollars 2.4 million, with the amount expected to increase to about N.dollars 2.9 million once the current year's contribution is added. He attributed the situation to poor revenue collection, a shortage of serviced land, aging infrastructure, and increasing service delivery demands linked to population growth.
Despite these challenges, the council has budgeted N.dollars 97,000 towards reducing the debt and intends to make monthly payments going forward. Sindongo stated, "We acknowledge our obligation and are committed to settling the debt, but the reality is that local authorities are facing significant financial pressures." Omaruru's proposed N.dollars 153 million budget is geared towards infrastructure development, including water supply upgrades, road maintenance, borehole development, smart water systems, and housing projects. He noted that recurring pipe bursts and inadequate water infrastructure remain among the town's major challenges.
Meanwhile, Swakopmund Municipality tabled a proposed budget of approximately N.dollars 600 million for the coming financial year, focusing on infrastructure maintenance, housing development, and financial sustainability. Municipality CEO Alfeus Benjamin highlighted efforts to address housing shortages through informal settlement upgrading programs, land servicing projects, and partnerships with private developers. Daures Constituency Councillor Inecia Brandt expressed concern over the continued growth of informal settlements across the region and called on local authorities to allocate more resources towards affordable housing and serviced land development.
The budget presentations formed part of consultations between the ERC and local authorities ahead of the approval of their 2026/27 budgets.