RFA Narrows Road Maintenance Funding Gap by N$1.3 Billion

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Windhoek:The Road Fund Administration (RFA) has successfully reduced the road maintenance funding deficit from N$3.6 billion to approximately N$2.3 billion. Despite this progress, the need for maintenance and rehabilitation continues to surpass the available funding.

According to Namibia Press Agency, RFA Chief Executive Officer Ali Ipinge discussed these developments at the 2026 Stakeholders Consultation on the RFA Business Plan for the fiscal years 2027/28 to 2031/32. Ipinge highlighted the recent approval of a 10% to 20% adjustment on other road user charges and the partial implementation of a N$1.60 per litre fuel levy adjustment, with 30 cents dedicated to 14 government priority road projects, including rural access and feeder roads.

The RFA is considering approximately N$1.5 billion in market borrowing against the ring-fenced 30 cents per litre to fund these projects. However, Ipinge warned about the risks of increasing debt and emphasized the importance of maintaining a balanced financial position. The RFA anticipates net revenue of just under N$5 billion for the upcoming financial year, to be allocated to the most critical road network interventions.

Ipinge encouraged approved authorities to fully utilize their budgets, noting that some have not exhausted their allocations, prompting the RFA to reallocate funds from local authorities unable to execute their projects. Following the January to April 2025 floods, the RFA submitted a high-level request to the government, seeking over N$1 billion in assistance, though a response is still pending despite some allocations for flood damage repair.

The Urban Roads Management System is evaluating road conditions in local authorities to determine maintenance priorities. Additionally, the RFA is employing stabilised and non-conventional materials to extend the lifespan of roads and conducting research with the Namibia University of Science and Technology (NUST) on alternative road user charging and climate resilience. Looking forward, Ipinge emphasized the need to focus on preserving existing roads, diversifying funding, and enhancing climate resilience.