Let’s not sugar-coat it, our local authorities are broke. And it’s no longer just a small accounting problem that can be patched up; it’s a full-blown crisis that threatens the future of some of our towns.
The problem is not only that they don’t have money. It’s that the very way our town councils do business is broken.
Here’s the reality: in many of our towns, residents are unemployed or scraping by on very little. Municipalities depend almost entirely on rates, taxes, water, and electricity payments, but when people can’t pay, that money never comes in. The result? Services get disconnected, residents get angry, councillors get threatened with being voted out, and under pressure, the taps and lights get switched back on. And that’s how councils end up with massive unpaid bills to NamWater, NamPower, and the REDs. The debt piles up, and the cycle spins on.
Minister James Sankwasa’s “clean-up” campaign deserves applause. At last, someone is taking corruption and maladministration in local authorities seriously. But it’s a double-edged sword. As some in the ruling party admit, cleaning up means exposing just how bad things really are, and that makes people uncomfortable. Still, ignoring the rot isn’t an option anymore.
The real question we should be asking is: is the way our towns make money even fit for purpose? Right now, most municipalities are surviving by selling off land, one of their few real assets, to pay for salaries and running costs. But that’s like selling your furniture to pay the electricity bill. Once the land is gone, so is the income from it. It’s short-term, unsustainable, and frankly, reckless.
It’s time to talk about a different way forward. The Ministry of Urban and Rural Development needs to take the lead in rethinking and rewriting the business models of our local authorities. Not just tinkering around the edges, we need to redesign the ship so it can actually sail.
There are alternatives, and they’re not pie-in-the-sky. Around the world, towns have found ways to make money that are both sustainable and community-focused:
Municipal Enterprises and Public-Private Partnerships (PPPs)
Instead of selling land, lease it for commercial and industrial use. That way, the municipality keeps ownership but still earns a steady income. Partner with private investors on projects like small-scale renewable energy plants, water bottling, or agro-processing hubs, ventures that create jobs and bring in cash. Yes, our laws allow this already, but the bureaucracy is glacial. Some deals take eight years to finalise. We can’t afford that. Speed and efficiency are key.
Tourism and the Cultural Economy
Even the smallest Namibian towns have something unique, history, culture, scenery. Councils could work with local businesses to create tourism packages, festivals, and heritage attractions that bring in visitors and open markets for local products. Lüderitz, Swakopmund, Opuwo — all could do more to monetise their stories and landscapes. This isn’t about billion-dollar projects; it’s about smart, affordable ideas that actually happen.
Service Efficiency and Smart Metering
Part of the problem isn’t just that people can’t pay, it’s that services are badly managed. Smart meters for water and electricity mean accurate billing, less wastage, and quicker action when payments fall behind. Yes, there will still be hardship cases, but good service delivery and transparent billing build trust, and trust makes people more willing to pay.
Industrial and Agricultural Clusters
Councils could partner with government to set aside serviced land for industrial parks, small-scale manufacturing, and commercial farming. Offer businesses tax breaks, quick permits, and reliable services, and you’ll grow your ratepayer base and boost local employment.
Municipal Bonds and Development Funds
Well-run councils could raise funds through municipal bonds to finance infrastructure that pays for itself, things like markets, toll roads, or housing. Development funds from government or international donors could be tied to performance, rewarding councils that improve transparency and service delivery.
We’ve seen this work elsewhere. South Africa’s eThekwini Municipality runs its own electricity and water services profitably, reinvesting surplus into community projects. In Botswana, some towns have set up agricultural and tourism partnerships that not only earn money but create jobs.
Of course, none of this will work if mismanagement and corruption remain. That’s why Sankwasa’s clean-up is a vital first step. But once the dirt is swept away, what replaces it? If we don’t have a new business model ready, we’ll simply drift back into the same old mess.
This is where the government must step up, not to micromanage every council decision, but to provide the framework, expertise, and oversight to help towns change course. The ministry should gather municipal leaders, private sector experts, academics, and community representatives to hammer out a Local Authority Revenue Diversification Strategy. And it has to be rooted in reality, not wishful politics.
In the end, it’s government’s call. Do we limp from crisis to crisis, watching towns decay and young people flee to the cities? Or do we finally commit to a new way of doing things?
The Windhoek Observer has warned before about the slow death of our towns, driven by incompetence and mismanagement. But this isn’t inevitable. With strong leadership, creative thinking, and a willingness to break the old habits, our local authorities could be engines of growth, not drains on the national budget.
If we get this right, our municipalities won’t be standing with begging bowls; they’ll be building opportunities. That’s the future we should be working for, and the work needs to start now.
