Staff Writer
The Motor Vehicle Accident Fund’s (MVA Fund) proposal to introduce new levies on locally registered vehicles, foreign-registered vehicles, and electric vehicles signals a shift in how Namibia finances its road accident compensation system.
Marco Pulse of Simonis Storm Securities said the MVA, which relies heavily on a N$N$0.47 per litre fuel levy, is facing sustainability challenges.
He noted that as vehicles become more fuel efficient and electric vehicle adoption expands, fuel levy revenue is no longer keeping up with the fund’s growing obligations, such as trauma care, rehabilitation, and loss-of-income payouts.
“This decoupling of road use from fuel consumption is prompting policymakers to explore alternative revenue streams that are more vehicle-centric rather than fuel-based,” Pulse said.
The proposed levies, estimated at between N$5 and N$50 for locally registered vehicles, and entry-point charges for foreign vehicles, may appear modest, but Pulse said they mark the start of a broader recalibration of vehicle cost structures.
He warned the levies could act as a regressive cost for lower-income households already struggling with rising vehicle prices, interest rates, and insurance premiums.
“While N$50 annually may seem negligible in isolation, it adds to the cumulative cost of car ownership, particularly for entry-level buyers, many of whom are gravitating toward affordable Chinese brands like Jetour, Haval, and Omoda.
These brands have gained market share precisely because they fill the affordability gap left by premium and mid-tier Japanese and German automakers.
Any added cost, no matter how marginal, could dull that competitive edge, especially in a market where price sensitivity is high and consumer behaviour is increasingly driven by total cost of ownership rather than brand prestige,” Pulse said.
He added that including electric vehicles in the levy framework raises concerns about policy coherence.
Namibia has made commitments to reduce transport-related emissions, promote green mobility, and align with its climate framework.
Pulse said at a time when South Africa, Egypt, and Kenya are introducing pro-EV policies, Namibia risks falling behind and losing first-mover advantages in a sector expected to grow rapidly over the next decade.
He also noted that levies on foreign-registered vehicles, especially those from South Africa, Zambia, and Angola, may encourage cross-border transporters to shift to local registration and financing, which could benefit Namibian dealerships.
Caption
The MVA plans to introduce new levies.
