WINDHOEK: City officials announced there will be no salary increases for staff of the City of Windhoek (CoW) for the financial year 2023/2024, despite a substantial municipal budget allocation.

Jennifer Comalie, the Strategic Executive of Finance and Customer Service for the municipality, revealed at a press conference on Tuesday that the last salary increment for staff occurred in 2020. The announcement coincides with the presentation of the approved N$5 billion budget for the upcoming financial year in Windhoek.

According to the Namibia Press Agency (Nampa), the decision takes into account several economic challenges such as hikes in bulk services tariffs, inflationary pressures, high unemployment rates within the city, and the stresses of urbanization on the provision of essential services, in addition to the need to manage ageing infrastructure.

Mayor Joseph Uapingene explained that personnel costs represent the largest expenditure for the municipality. The decision to maintain salary levels was made to ensure that revenue growth translates into a financially stable city. He underscored that the size of the new budget reflects the city’s expansion.

Uapingene detailed that the 2023/2024 budget is designed to enhance service delivery efficiency. The capital budget prioritizes infrastructure maintenance and development, particularly in water and electricity sectors, to meet the demands of a growing population. Out of the proposed N$513 million capital expenditure budget, N$507 million was sanctioned, with about N$460 million earmarked for infrastructure and housing projects.