Namibia's Road Fund Administration Reports N$3.6 Billion Financing Gap in Road Maintenance
Namibia's Road Fund Administration has identified a N$3.6 billion financing gap in road maintenance, with projections indicating that the Road User Charging System will only cover 46% of national needs by 2025. To address this shortfall, the RFA plans to adjust RUCS, explore new revenue sources, and enhance infrastructure for electric vehicles and green projects. The government's strategy also includes modernizing the railway network to improve overall transport efficiency.
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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.
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