Chamwe Kaira
The Road Fund Administration (RFA) says it faces a funding shortfall of N$3.6 billion under its Integrated Strategic Business Plan (ISBP) for the 2024–2029 period, a gap that rises to N$15.3 billion over five years.
The ISBP sets out a plan to gradually increase funding for national and urban road maintenance.
RFA says this will be supported by capacity-building efforts within the Roads Authority and municipalities.
It also notes that traffic law enforcement should be funded through public allocations to keep it independent of Road User Charges (RUCS) fluctuations.
The RFA says the ISBP extends its internal business plan and aims to improve transport infrastructure by aligning global transport trends with national development priorities such as Vision 2030 and the fifth National Development Plan (NDP6).
The plan was developed in collaboration with the Ministry of Finance and the Ministry of Works and Transportation.
The ISBP reflects the RFA’s expanded mandate, which now includes support for traffic law enforcement, management of traffic information systems, and road infrastructure funding.
Fiscal pressures and limits on RUCS tariffs have constrained revenue. For the 2025 financial year, RUCS is expected to cover only 46% of national road maintenance needs, while urban roads remain underfunded by 30%.
To close the N$3.6 billion gap, the RFA says RUCS tariffs will need periodic adjustments, new revenue sources must be explored, and additional funding may be required from government or external financiers.
RFA statistics show the transport sector is set to grow, with vehicle sales rising at an annual rate of 3%.
New regulations requiring used vehicles to be transported by road carriers are expected to reduce grey imports and protect road infrastructure.
RFA also expects electric vehicle use to increase, supported by the rollout of charging stations. Cross-border electric vehicle traffic could create a new revenue stream.
Major infrastructure projects, including green hydrogen developments in Erongo and the expansion of the Walvis Bay port, are expected to increase road usage and place further pressure on maintenance needs.
The government funding under Vision 2030, NDP5 and Harambee Prosperity Plan II is set to expand and modernise the railway network within five years.
Planned projects include a rail link with Botswana and a 207-kilometre line from Kranzberg extending toward Zambia and the Democratic Republic of Congo.
The RFA says it will respond through risk assessments, scenario planning and sustainable technological upgrades.
Caption
The Road Fund Administration (RFA) has outlined a strategy to gradually increase funding for national and urban road maintenance.
- Photo: Contributed
