By: Annakleta Haikera
The Rundu Town Council has launched its wholly council-owned commercial subsidiary, Rundu Town Council Commercial Services (RTCCS), as the town grapples with rapid population growth, rising demand for basic services and limited municipal revenue in the Kavango East Region.
The newly launched company is expected to unlock commercial opportunities, attract investment and generate sustainable revenue to strengthen the council’s financial position and ultimately improve service delivery to residents.
Speaking at the launch in Rundu on Friday, Prime Minister, Elijah Ngurare, in a speech delivered on his behalf by Executive Director in the Office of the Prime Minister, Petrus Sindimba, cautioned that RTCCS should not become solely profit-driven at the expense of the community it was created to serve.
“The aim, therefore, should not just be profit. Public service delivery should always come first,” Ngurare said.
He stressed that RTCCS belongs to the residents of Rundu and that its success should translate into tangible benefits for the community.
Ngurare said local authorities are facing growing demands for serviced land, housing, roads, water, sanitation and waste management, while financial resources remain limited.
He noted that Rundu’s position as one of Namibia’s major urban centres and an important commercial and service hub for north-eastern Namibia presents opportunities for trade and economic linkages with neighbouring Angola and the wider Southern African Development Community region.
“Our responsibility is to transform these advantages into investment, businesses, jobs and improved livelihoods,” he said.
Ngurare also commended the council for strengthening RTCCS’s balance sheet by making land available to the subsidiary, but warned that public assets should not simply remain on paper.
“Public assets must not merely sit on a balance sheet. They must be transformed into productive investments,” he said.
He suggested that the land could be used for commercial developments, an industrial park, tourism facilities, an agro-processing centre or other investments capable of creating employment and generating sustainable revenue.
“The challenge to the board and management is, therefore, to convert the assets entrusted to this company into lasting economic and social value,” Ngurare said.
The launch comes as Rundu’s population continues to grow by an estimated 5.5% annually, placing increasing pressure on the town council to provide water, electricity, serviced land and other municipal services.
Strategic Executive for Community Services Fransiska Kupembona said the rapid population growth has increased demand for infrastructure in both informal and formalised settlements.
“Wherever you go, especially in the informal settlement or the formalised areas, people are saying, ‘Rundu Town Council, we need water’,” Kupembona said.
She said the council’s traditional revenue sources are no longer sufficient to keep pace with the growing needs of the population.
According to Kupembona, the council’s 2022 Integrated Strategic Business Plan identified the need to broaden and diversify its revenue base, leading to the establishment of RTCCS.
The subsidiary will identify commercially viable opportunities, structure investment partnerships and joint ventures, and pursue sustainable returns that can contribute to the council’s long-term financial sustainability.
Its mandate includes developing greenfields and brownfields commercial ventures and converting municipal assets and opportunities into productive economic activities.
Kupembona stressed that the council would retain its municipal governance and public-service mandate while exercising shareholder oversight over the commercial subsidiary.
She added that the initiative is legally grounded, including under the Local Authorities Act, and is intended to help the council address its financial challenges while improving service delivery.
COUNCIL EMBRACES DIGITAL SERVICES
Meanwhile, the council is also moving to modernise how residents access municipal services.
Strategic Executive for Finance and IT Sam Nekaro announced the introduction of the council’s e-services, designed to make municipal services more accessible and convenient for residents and businesses.
The e-portal allows users to view their municipal statements and make payments digitally through options including EFT, self-banking and e-wallet.
Residents can register for the service through a link sent via SMS together with their monthly municipal statements.
Nekaro said the council is committed to expanding digital service delivery and reducing the need for residents and businesses to make physical visits to municipal offices.
With RTCCS tasked with unlocking new commercial opportunities and the council pursuing digital transformation, Rundu is seeking new ways to keep its finances and services aligned with the demands of its growing population.
