Slow revenue collection hampers water utilities -EWURA

EARLY tests show eWATERpay triples water point revenue and reduces wait times from 3 hours to 10 minutes in Tanzanian villages. (file photo)

DAR ES SALAAM: A NEW report assessing the performance of water supply and sanitation authorities (WSSAs) across Tanzania highlights both achievements and ongoing challenges in ensuring sustainable water access for millions.

Here, the “Water Utilities Performance Review Report 2023-24” reveals critical issues in financial sustainability, service coverage, and infrastructure efficiency.

One of the key concerns raised in the report is the slow pace of revenue collection.

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“The debt collection period remains a pressing challenge, with some utilities taking more than three months to recover payments from customers,” said an official at the Energy and Water Utilities Regulatory Authority (EWURA).

“This affects the financial stability and operational efficiency of the utilities.” The report highlights that while some authorities have improved collection efficiency, the average debt collection period exceeds two months in many regions.

Revenue collection efficiency, measured as the ratio of total revenue collected to total billing, also varies widely across utilities, with some achieving above 90 per cent efficiency while others struggle below 70 percent.

EWURA’s Board Chairman Prof Mark Mwadosya, emphasised the urgency of addressing revenue collection issues.

“Delayed payments are crippling utility operations. We need immediate action to ensure financial sustainability and improved services for the people,” he said.

Despite efforts to expand access, water service coverage remains inconsistent across the country.

The report indicates that the percentage of the population receiving water services is below the national target in some municipalities.

“We are working to expand service areas, but infrastructure gaps and rapid urbanisation pose challenges,” said Fatma Kijazi, a senior official at a regional water authority.

The average number of hours per day that water is available to consumers remains another major issue.

While the ideal standard is 24-hour supply, many areas receive intermittent services.

Some municipalities report less than 12 hours of supply per day, largely due to aging infrastructure and supply limitations. A significant concern outlined in the report is water loss, which remains above the acceptable level of 20 percent in several utilities.

“Water losses, whether through leaks, illegal connections, or meter inaccuracies, continue to impact efficiency,” said Mwakalebela.

The metered water connections ratio is another key metric in assessing utility performance, with the national goal set at 100 percent metering.

However, in some areas, non-metered connections still persist, leading to inaccurate billing and revenue loss.

Director General of EWURA Dr James Mwainyakule, highlighted the importance of reducing water loss.

“Water utilities must prioritise reducing non-revenue water. Every litre lost is a missed opportunity to improve services and sustain operations,” he said.

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The report also examines staff productivity, measured by the number of employees per water connection.

“We aim for efficiency in staffing to ensure sustainability, but some utilities still have higher-than-necessary staffto-connection ratios,” said Kijazi.

Meanwhile, operational cost-to-revenue ratios vary, with some utilities struggling to cover costs efficiently.

Ideally, the ratio should remain below 0.8 for a utility to be considered financially sustainable. Ensuring that water supplied meets national quality standards is a priority, with most utilities showing compliance.

However, challenges in some areas persist due to water treatment capacity limitations and contamination risks.

“Our goal is to ensure safe drinking water for all consumers, and we continuously monitor quality compliance,” said Dr George Masele, a water quality specialist.

Consumer satisfaction is another area of concern. Complaints related to billing, service interruptions, and response times remain common.

The report recommends improved customer engagement and technological innovations to address these issues.

While utilities are struggling with financial constraints, some initiatives have been launched to improve efficiency.

Several municipalities have adopted digital payment systems to streamline bill collection.

“We have introduced mobile payment options to reduce delays in revenue collection and make it easier for customers to pay their bills,” said Mwakalebela.

The government is also working on improving transparency through real-time monitoring of water supply networks, which helps detect leakages and unauthorised usage more efficiently.

To address water losses, some regions have begun replacing outdated pipes and enhancing leak detection efforts.

“We are investing in modern equipment to detect and repair leaks faster, which should significantly reduce our non-revenue water losses,” said Kijazi.

Experts say reducing water losses could help improve financial performance and lower consumer costs over time.

Additionally, the government is collaborating with private sector partners to increase water access in underserved areas. Several publicprivate partnerships have been formed to expand infrastructure and develop new water sources.

“Private sector investment in water projects is essential for long-term sustainability, and we encourage more stakeholders to come on board,” said Dr Masele.

This strategy aligns with the broader national agenda to ensure universal water access by 2030. Deputy Prime Minister Dr Doto Biteko emphasised the government’s commitment to addressing these challenges.

“The government is fully committed to ensuring that water utilities operate efficiently and provide sustainable services. We are implementing reforms to enhance accountability and performance in the sector,” he said.

Another critical aspect discussed in the report is customer engagement.

Utilities are being urged to improve communication with consumers, particularly in handling service disruptions and billing concerns.

“We are implementing customer care centres to ensure quicker response times and better service delivery,” said Kijazi.

Consumer education programs are also being introduced to promote responsible water use and timely bill payments.

The report outlines several recommendations to enhance utility performance.

These include investing in infrastructure rehabilitation, improving revenue collection mechanisms, expanding metering coverage and reducing water losses.

Additionally, enhancing regulatory oversight and implementing performance-based incentives for utilities are suggested as strategies to drive improvements.

“We need a collaborative approach, involving both the government and stakeholders, to ensure sustainable water service delivery,” said Kijazi.

As Tanzania continues to urbanise and its population grows, addressing these challenges remains critical for ensuring access to clean and reliable water services.

The findings in this latest report serve as both a benchmark for progress and a call to action for further improvements in the sector.

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