Water utilities struggle to meet performance benchmarks

DAR ES SALAAM: TANZANIA’S water utilities are grappling with key performance shortfalls despite efforts to improve service delivery, according to the latest “Water Utilities Performance Review Report 2023-24.”

The report highlights critical financial, operational and service quality indicators that determine the effectiveness of the country’s water supply and sanitation authorities (WSSAs).

The assessment paints a mixed picture, with some utilities excelling in revenue collection and metering efficiency, while others continue to struggle with high water losses, unreliable supply and customer dissatisfaction.

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“Performance has improved in some areas, but several utilities remain below key benchmarks,” said Prof Mark Mwadosya, chairman of the sector’s regulatory board.

“Addressing these shortcomings requires stronger accountability and investment in efficiency measures.”

One of the most critical KPIs is revenue collection efficiency, which assesses the ratio of total revenue collected to total billing.

The report reveals significant disparities among utilities, with some achieving over 90 per cent efficiency, while others lag below 70 per cent.

“Revenue collection is a crucial determinant of a utility’s financial health. Low collection rates directly impact service sustainability,” said Prof Mwadosya, citing findings from the report.

Water losses, also known as non-revenue water (NRW), continue to be a major concern.

The report states that some utilities experience NRW levels exceeding 30 per cent, well above the acceptable benchmark of 20 per cent.

“Every drop of lost water represents lost revenue and inefficiency in our system,” said the Energy and Water Utilities Regulatory Authority (EWURA) Director General Dr James Mwainyekule, adding: “Investing in infrastructure modernisation and stringent monitoring is essential,” he added, referencing data from the report.”

Service coverage is another key indicator under scrutiny. While some municipalities have expanded their networks, others remain below the national goal.

ALSO READ: World Vision, Absa Bank boost water access for vulnerable communities

“We are striving for universal water access by 2030, but challenges such as rapid urbanisation and outdated infrastructure hinder progress,” said Fatma Kijazi, a regional water authority official.

The report indicates that water supply reliability varies, with some urban centres receiving water for fewer than 12 hours per day.

The national target remains a 24-hour supply. Metering coverage, a KPI closely tied to revenue assurance, shows improvements but still falls short in several regions.

The goal is 100 per cent metering, yet some utilities continue to operate with non-metered connections, leading to billing inaccuracies and financial losses.

“Without proper metering, it is impossible to ensure fair billing and accountability,” said Kijazi, referencing the report’s recommendations.

Another important KPI is staff productivity, measured by the number of employees per water connection.

“Efficiency in workforce management ensures operational sustainability, but some utilities still have high staff-to-connection ratios, increasing overhead costs,” said Deputy Prime Minister Dr Doto Biteko.

The report emphasises that better resource allocation is crucial to enhancing efficiency.

Operational cost coverage is also a major determinant of utility performance. Ideally, water utilities should maintain a cost-revenue ratio below 0.8 to ensure profitability.

However, the report highlights that some utilities exceed this threshold, struggling to cover operational expenses.

“Financial sustainability requires a balance between revenue collection, service provision and cost management,” said Dr Mwainyekule, adding that the findings underscore the need for cost-cutting measures.

Quality compliance remains a priority, with most utilities meeting national water quality standards.

However, the report notes that some areas still face challenges due to limited water treatment capacity and contamination risks.

“Ensuring clean, safe water is a non-negotiable responsibility. We are working to strengthen water quality monitoring mechanisms,” said Dr George Masele, a water quality specialist, citing regulatory evaluations.

Customer satisfaction is another crucial performance metric. Consumer complaints about billing errors, service interruptions and response times remain prevalent.

“Utilities must improve engagement with their customers. We are implementing technology-driven solutions to enhance response times and transparency,” said Kijazi, referencing the report’s call for improved consumer relations.

To address these challenges, the government has launched several initiatives, including the adoption of digital payment systems to enhance revenue collection and reduce delays.

“Digitalisation is transforming revenue collection and accountability within the sector,” said Dr Biteko.

Additionally, investment in modern leak detection equipment and infrastructure upgrades is expected to reduce NRW and improve service reliability.

Government policies have increasingly focused on improving water access as a pillar of national development.

The Water Sector Development Programme (WSDP) outlines key initiatives to expand infrastructure, strengthen regulatory oversight and enhance financial sustainability.

“The government’s commitment to water sector reforms aligns with Tanzania’s broader goal of achieving middle-income status by ensuring universal access to clean water,” said Dr Biteko.

Budget allocations for the water sector have also seen an upward trend, with the 2024/25 national budget earmarking significant funds for pipeline expansion, water treatment facilities and rural water projects.

“This year’s budget reflects the urgency of addressing water challenges and ensuring that every Tanzanian has access to safe and reliable water,” said Minister for Water Jumaa Aweso.

The Tanzania Development Vision 2025 places water infrastructure as a key driver for economic growth and social well-being.

The vision emphasises sustainable water resource management, improved efficiency in water delivery and enhanced service coverage in both urban and rural areas.

“Water is a fundamental component of our development blueprint and achieving these targets is crucial for the well-being of our citizens,” said Aweso.

Additionally, the ruling party’s Chama Cha Mapinduzi (CCM) manifesto underscores the importance of water security, highlighting commitments to reducing water shortages and increasing investment in modern technology to combat losses.

“Access to water is a priority in our manifesto because it directly affects health, economic activities and overall quality of life,” said Dr Biteko. “We remain committed to implementing lasting solutions.”

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