RFA one of few SOE’s not to rely on national budget – Schlettwein

New day… From left: CEO of the Road Fund Administration Ali Ipinge, Minister of Public Enterprises Leon Jooste and chairperson of the RFA Penda Ithindi watch as Minister of Finance Calle Schlettwein cuts the ribbon to officially inaugurate the new N$52 million four-storey RFA head office in Windhoek.


The Road Fund Administration (RFA) is one of the few public enterprises that has been able to raise additional funding from the financial services market on the basis of its revenue collection ability and asset base, without relying on transfers from the national budget. Over the past two years the RFA collected N$3.3 billion, which Finance Minister Calle Schlettwein, says is an important contribution for the upkeep and improvement of the country’s 46 000km national road network.

“This year, the Fund has been able to successfully repay its 10-year loan stock, amounting to N$330 million. In November last year the Fund was able to successfully raise an additional 30 million Euro, or some N$420 million, from KfW to scale-up its financing capacity and increasingly meet financing needs in the sector in a sustainable manner,” said Schlettwein during the inauguration of the RFA’s new N$52 million headquarters in the capital.

The RFA, which was established 15 years ago, is mandated to manage Namibia’s Road User Charging System (RUCS) and the Road Fund, with a view to maintaining sustainable funding for the road sub-sector. At the inception of the RFA total collections from RUCS in 2000 stood at about N$490 million. Last year the RFA collected N$1.7 billion and expects to collect close o N$2 billion at the end of 2016 and over N$2.2 billion annually going forward.

“As custodians of road-user charges, you should go beyond mere allocation of funds formalities to ensuring the quality of spending so that value for money is not compromised. After all, that is what the taxpayers of the levies expect from us,” Schlettwein added.

Also speaking at the inauguration, RFA’s chief executive officer, Ali Ipinge, noted that the next chapter of the road sector and broader transport sector calls for more consolidation of efforts, joint planning and “relentless” execution and implementation of plans. “Only through this I believe that Namibia can truly fulfil its mission of developing into a regional logistics hub,” said Impinge.

“The official inauguration of the RFA House is indeed a historic moment for the Road Fund. The brand new and modern head office provides a great and vibrant working environment to do business with us. The new building is also a catalyst for us in the execution of our mandate and will help us set the pace as we enter a new phase for the Road Fund,” Ipinge added.


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