{"id":49310,"date":"2023-07-14T17:39:20","date_gmt":"2023-07-14T17:39:20","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/rising-city-tariffs-rub-salt-into-consumer-wounds"},"modified":"2023-07-14T17:46:18","modified_gmt":"2023-07-14T17:46:18","slug":"rising-city-tariffs-rub-salt-into-consumer-wounds","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/rising-city-tariffs-rub-salt-into-consumer-wounds","title":{"rendered":"Rising city tariffs rub salt into consumer wounds"},"content":{"rendered":"

Maihapa Ndjavera<\/b><\/p>\n

Africa-Press – Namibia. <\/strong><\/span>Stagnant salaries versus rampant inflation already has Namibian consumers on the defensive. Now, the City of Windhoek (CoW), with increases in water (4.5%) and refuse removal (5%), is demanding more money from already cash-strapped residents.<\/p>\n

The increases, effective from this month, will force city residents to choose between fuel, food, water or sanitation.<\/p>\n

In addition, the CoW is awaiting approval from the Electricity Control Board (ECB) on its electricity tariff application. Once approved, this increase is sure to be another slap in the face of already-struggling consumers.<\/p>\n

In defence of the city, its spokesperson Harold Akwenye this week told New Era that everything in the domestic economy is going up, and the increases are thus valid.<\/p>\n

\u201cInflation is going up, and you saw that NamWater and Nampower already raised their tariffs. There are other factors we looked into, and it makes sense to raise it now,\u201d he proffered.<\/p>\n

Just last month, the city stated that it is owed a staggering N$1.2 billion as at ends May 2023. Culprits with outstanding accounts include residential clients, businesses, state-owned enterprises and government itself.<\/p>\n

At the time, the city noted that the debt was becoming unsustainable, making it difficult to pursue their mandate of delivering uninterrupted municipal services to customers.<\/p>\n

Meanwhile, local economist and city resident Omu Kakujaha-Matundu said living in the capital is becoming tougher and tougher.<\/p>\n

\u201cThe increase doesn\u2019t seem to be excessive, but it came at a time when the consumer is already stretched to the bone. We are already in a cost-of-living crisis, and this tariff increase is like rubbing salt into raw wounds,\u201d he stressed. As an economist, Kakujaha-Matundu said he would advise consumers to live within their means, but lamented the fact that consumers have no more means.<\/p>\n

\u201cGovernment should open its mouth, and tell the nation how it is planning to cushion consumers against the throes of rising prices,\u201d he continued.<\/p>\n

Natalia Shilongo, also an economist and resident of Windhoek, said it is not economically viable for consumers to see house bonds, car loans and food prices increasing at the same time as rates and taxes. \u201cBut, this doesn\u2019t stop the city from milking already-drained consumers,\u201d she complained. Shilongo said due to a lack of disposable income, the rate hikes can be expected to result in significant debt increases and more defaults.<\/p>\n

\u201cThe nature of business may be reasonable, but its timing is not. In the environment of rising inflation and interest rates, there has been a surge in the average cost of living; and the same cannot be supported by these rate increases. Consumers are drained, specifically on the low to middle-income spectrum. One can only advise consumers to cut home energy charges by reducing their usage,\u201d the economist advised.<\/p>\n

Another resident was also downbeat.<\/p>\n

\u201cThis city tariff increase exerts more pressure on households which are already struggling under a high cost and interest rate environment. This definitely pushes up my monthly cost of living as a young professional. With the current disinflationary trend (June CPI rate: 5.3%), this new tariff increase is likely to marginally push up the inflation print for July,\u201d opined fellow local economist, Enos Kamutukwata.<\/p>\n

Katutura resident Tabitha Kandjii likewise shared her frustration within an ailing economy. She said she does not know what to do, or how to live within the dwindling limits. \u201cIt\u2019s a trying time of confusion and depression. This is the most difficult era of my life. We are now learning how to budget accordingly,\u201d Kandjii stated.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Maihapa Ndjavera Africa-Press – Namibia. Stagnant salaries versus rampant inflation already has Namibian consumers on the defensive. Now, the City of Windhoek (CoW), with increases in water (4.5%) and refuse removal (5%), is demanding more money from already cash-strapped residents. The increases, effective from this month, will force city residents to choose between fuel, food, […]<\/p>\n","protected":false},"author":84,"featured_media":49309,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[234,236,233],"class_list":["post-49310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nRising city tariffs rub salt into consumer wounds - Namibia<\/title>\n<meta name=\"description\" content=\"Stagnant salaries versus rampant inflation already has Namibian consumers on the defensive. 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