The strategic use of small scale water providers : an analysis of private-sector participation in peri-urban Maputo

Abstract

During Portuguese colonial rule biased service provision throughout the 20th century resulted in a city that today has spatially segregated water services distinguishable along racial lines. In 1975, a newly independent Mozambique lacked the financial and human resources necessary to extend its utility network to peri-urban residents. Water coverage rates and service levels could not keep up with population growth. Donor agencies and policymakers gave a great deal of attention to large scale-private sector participation but it was unable to overcome Maputo's infrastructure challenges. Today, less than 40 percent of Maputo residents have access to the utility network. Maputo's 'other private sector' - small, informal private-sector providers (SPSP) - serve over 150,000 residents with reliable standpipes and private connections and have contributed significantly to coverage goals. Sector planners knew less, however, about how they could contribute to future sector goals. This study aims to answer that question through a detailed analysis of their cost and price structures, investment profiles, and operating environment.

(cont.) We find that Maputo's SPSPs already contribute significantly to the sector's coverage, service, and financial sustainability goals. They should be viewed as an integral part of Maputo's water delivery system and not 'a problem' like much of the literature brands them. Their operations can be made more efficient, affordable, and environmentally sustainable with the appropriate policy and business interventions. We recommend actively promoting larger SPSPs, universal metering, improved electricity supply, reducing costs associated with water pumps, and taxation and regulatory measures so ISNOs can contribute to all sector goals as planning moves forward.