Namibia: City, Govt in N$357m Barter Deal
The City of Windhoek has signed a land-swap agreement with the government to settle N$357.8 million in capital debt in exchange for municipal land.
However, the first phase of the deal leaves a N$66.3 million shortfall that could require the transfer of more City land.
The agreement, signed on 27 April 2026 between the City and the Ministry of Finance, has been approved by Cabinet and will be implemented in two phases.
Finance Minister Ericah Shafudah, in a letter to Windhoek mayor Sakarias Uunona, said Phase One involves six properties already evaluated and valued at about N$291.5 million, representing approximately 81% of the City’s capital
debt.
“Cabinet has approved the implementation of the agreement in two phases,” Shafudah said.
According to the City council resolution, the capital balance of the loan is N$357.765 million, while interest of N$352.631 million is subject to a waiver under the
agreement.
These properties include portions of Farm 1009 and Farm 1019, two proposed portions in Groot Aub, Erf 5727 opposite the Windhoek Police Station, and Erf 6348, the High-Performance Centre.
The properties cover approximately 274.98 hectares.
After the first phase, the City will still need to account for N$66.287 million of the capital debt.
This shortfall is expected to be addressed through Phase Two, which could see more land around the Independence Stadium being included in the swap.
The Windhoek Municipal Council met about a fortnight ago to chart the way forward.
“The Ministry of Finance is currently awaiting the finalisation of the valuation of the land parcels around the Independence Stadium in order to determine the outstanding balance required to fully offset the capital debt,” Shafudah said.
The government has requested four properties around the Independence Stadium for inclusion in Phase Two. These are Erf 6758, on the north-western corner of the stadium; the remainder of Erf 6755, on the eastern side, Erf 6848, on the southern side, and Erf 7054, on the south-western side.
The council resolution states that any remaining land value needed to fully settle the outstanding loan should be compensated through additional residential land in Groot Aub.
But the stadium land is not the only additional property the government wants.
The Ministry of Health and Social Services has requested approximately 1.5 hectares of Farm 466 Otjomuise, known as the Ramatex Rhino Garment Factory, for the establishment of a Central Medical Store.
Shafudah said the Cabinet had taken note of the request and asked the City to consider incorporating the property into Phase Two.
“The City of Windhoek is therefore kindly requested to consider incorporating the Ramatex Complex into Phase Two of the implementation,” she said.
The government says it understands that the City has indicated its willingness to partially dispose of approximately 1.5 hectares of Ramatex for public use.
It argues that acquiring the land through the existing land-swap arrangement would be “the most efficient and mutually beneficial approach” instead of a direct purchase or lease.
However, the City has not yet approved the Ramatex transfer. The council resolution states that the request will be dealt with separately to allow council to properly consider and interrogate it.
The debt swap follows council resolutions adopted in April 2023 and March 2025, which authorised negotiations between the city and central government.
The agreement is still subject to several required approvals, including approval from the Minister of Urban and Rural Development and Treasury authorisations relating to the transfer of municipal properties.
Once all conditions have been met, the minister of finance will issue the City with a completion of payment certificate, serving as proof of full and final settlement of the debt.
The agreement further provides that, after ownership has passed and subdivision plans have been approved, the new owner must enter into a development agreement with the city for the planning, design and installation of infrastructure and services.
The City’s management committee described the first phase of negotiations as “fruitful”, but the deal has now entered a second phase.
According to the documents, the outstanding N$66.3 million, the final valuation of the Independence Stadium properties and the government’s request for part of the Ramatex complex will determine how much more municipal land may ultimately be transferred to settle the City’s capital debt.
Several City councillors and officials did not immediately respond to questions on the matter.
By New Era.
