Namibia's Road Fund Administration Reports N$3.6 Billion Financing Gap in Road Maintenance
The Road Fund Administration (RFA) of Namibia's Integrated Strategic Business Plan for 2024-2029 reveals a significant financing gap in the Road User Charging System (RUCS). Projections indicate that RUCS revenue will cover only 46% of national road maintenance needs in 2025, with urban roads underfunded by 30%.
This results in a shortfall of N$3.6 billion, escalating to N$15.3 billion over five years. To mitigate this gap, the RFA proposes periodic adjustments to RUCS and seeks new revenue sources, including enforcing regulations on used vehicle imports.
The RFA intends to enhance electric vehicle infrastructure and capitalize on projects like green hydrogen and the expansion of Walvis Bay port, which will increase road usage. Additionally, the government plans to modernize the railway network, including a railway line to Botswana and Zambia. The business plan aims to increase funding for road maintenance while strengthening law enforcement through public allocations.
