Reforming the namibian road user charging system towards a sustainable funding

Abstract

Most countries in sub-Saharan Africa, including Namibia, have established second-generation road funds for funding the road sector with road user charging (RUC) revenue streams that are deposited into the designated account. The Namibian road user charges system (RUCS) consists of charging instruments such as fuel levies, vehicles registration and annual licensing fees, cross boarder charges, mass distance charges and abnormal load fees. Among instruments in place for charging road user is fuel levy contributing about 60% to the revenue accruing to the Road Fund Administration (RFA). The principal motive driving the RUCS in many countries include gauging against the growing fuel-efficient and electrified motor vehicles that could bring about unsustainability in road funding as the fuel levy loses its prowess as the main revenue contributor. Additionally, heavy vehicles imposes substantial costs when uses the road network, however, the current mass distance charging aimed at ensuring that heavy vehicle owners pay their fair share for the cost they impose is prone to evasion. This paper sought to investigate the current RUCS towards reforming the system. The paper take a proposition that technology could be the answer to such a challenge, by exploring technology to charge per vehicle per kilometre travelled. The paper thus draws business requirements within the proposed framework.