Windhoek City: Resuming Debt Collection After RedForce Exit

• The City of Windhoek has resumed collecting overdue municipal debts through its internal resources after RedForce Debt Management's contract expired.
• No new external debt collection service provider has been appointed, leaving the city to continue with debt collection activities using its own internal resources.
• Customers with outstanding accounts are required to engage directly with the debt and risk management division to negotiate payment arrangements.
• The city will continue charging 20% interest per annum on overdue municipal accounts, as well as prescribed disconnection fees in line with the 2026/27 municipal tariffs.

Recovering outstanding debt is critical to maintaining its financial sustainability and ensuring the continued delivery of municipal services.

The City of Windhoek has announced that it will resume collecting overdue municipal debts through its internal resources after the expiration of its contract with RedForce Debt Management. The city's decision comes as no new external debt collection service provider has been appointed, leaving it to continue with debt collection activities using its own internal resources. This move is likely to impact customers with outstanding accounts, who are now required to engage directly with the debt and risk management division to negotiate payment arrangements.

The expiration of RedForce Debt Management's contract marks a significant development in the City of Windhoek's approach to debt collection. Under the terms of its internal resources, the city will continue charging 20% interest per annum on overdue municipal accounts, as well as prescribed disconnection fees in line with the 2026/27 municipal tariffs. This decision may set a precedent for other local governments in Namibia, potentially impacting their financial sustainability and service delivery.

The City of Windhoek's decision to resume internal debt collection has far-reaching implications for the city's financial sustainability and service delivery. Recovering outstanding debt is critical to maintaining the city's financial stability, ensuring that essential municipal services continue uninterrupted. This development may also have a ripple effect on other local governments in Namibia, highlighting the need for municipalities to reassess their debt management strategies.

Lawyers advising municipalities on debt management should note that the City of Windhoek's decision to resume internal debt collection may set a precedent for other local governments, potentially impacting their own financial sustainability and service delivery.

Source: Original reporting via Namibian