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Poor access to drinking water is a major problem in rural
Tanzania. New water points are being constructed but
sustainability remains a common challenge. The 2015
national water point mapping survey (Minstry of Water,
Tanzania) found that out of 86,946 rural water points, only
54 per cent were functional, 7 per cent needed repair,
and 39 per cent were non-functional. As a result, about 50
per cent of people in rural areas of Tanzania do not have
access to safe drinking water. Failure of rural water supply
has many causes. Most rural water schemes have failed
because of poor operations and maintenance attributed
to low-cost recovery or revenue management (Whaley
and Cleaver 2017).
Prepaid water systems have attracted significant
attention in Tanzania and are considered a game
changer in ensuring sustainability of rural water
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PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIARESEARCH BRIEF
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services in the country. The management of these
prepaid systems has been strengthened with the
formation of Community-Owned Water Supply
Organisations (COWSOs) covering over 1,400 villages.
Prepayments by water users ensure that resources
are available to operate and maintain the system.
In addition, mobile payment systems and digital
technologies have been introduced to enhance the
ease of payment and to reduce non-revenue water
(un-accounted water).
Different models of the prepaid water systems are being
piloted by national and international organisations.
These include the eWater system in Babati and Arusha
districts supported by DFID through a consortium led
by WaterAid, and the HDIF-funded Grundfos AQtaps
model in Karatu district, and Susteq in Kishapu district.
Although all these technologies are very promising and
have brought several advantages, what has not been
clear is the extent to which the prepaid water systems
have contributed to the sustainable delivery of inclusive
and safe water services in rural Tanzania.
This summary presents the key findings of research commissioned by HDIF, in partnership with DFID, to look into these prepaid water systems and analyse their effectiveness to date. The overall question for this
study was: To what extent do the prepaid water systems
contribute to the sustainable delivery of inclusive and safe
water services in rural Tanzania?
The study explored the operational sustainability of the
selected prepaid water meters, the use of prepaid water
meters by different population groups, the challenges
of rural water supply, and which of these challenges
are being addressed by current prepaid water systems.
Moreover, the study unpacked the overall contribution of
the prepaid water systems in improving the sustainability
of rural water supply in Tanzania. The study’s objectives
were to:
• Explain the types of prepaid water systems being
piloted through a situation analysis, using secondary
literature and key informant interviews.
• Describe the technologies currently being used to
deliver prepaid water systems in terms of both their
similarities and differences.
• Review and explain the type of management and
business models attached to the existing prepaid
water systems, especially the relationship between
the COWSO, village committees, and district-level
water office.
• Summarise the typologies, strengths, and weaknesses
of the prepaid water systems currently operational in
Tanzania.
Why pay for water?
In a country like Tanzania, where almost 50 per
cent of water points are broken or abandoned
and almost half of the population lacks access to
clean water, rural communities need cost-efficient,
locally adapted innovations that can help improve
the reliability of water services and provide a more
sustainable water infrastructure. Prepaid water
systems enable users to pay digitally in advance
and collect regular water from a water kiosk.
National surveys of 19 sub-Saharan African
countries in 2008–09 found that only 30 per cent
of rural households pay for water, while payments
are more regular where the water supply is reliable
(Foster and Hope 2017). The general conclusion
from several studies is that pay-as-you-collect
systems and approaches are much better for
sustainability of rural water schemes (ibid.).
RESEARCH BRIEF PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIA
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The systemsPrepaid water system in Kishapu district
In Kishapu, the prepaid component is based on a
technology developed by Susteq, a Dutch company
based in the Netherlands, and implemented by Investing
in Children and Societies (ICS). The technology consists
of a water point, a kiosk (where the water point is), a shop,
digital water tags, an application programming interface
(API) for mobile money transfers, a database, and a
dashboard for system monitoring and reports generation.
The water is delivered at an unstaffed water point.
Users can collect water at any time
of the day via water credit cards
topped up via their mobile phones
or from licensed credit sellers.
Using a grant from HDIF, ICS
designed and implemented the
prepaid system in partnership
with Kishapu District Council
and the local water authority,
Maganzo Water Supply
and Sanitation Authority
(MAGAWASA). Susteq provides
the technology, carries out
system updates, and manages
the back-end of the dashboard
system from the Netherlands. ICS
water engineers and technicians
are responsible for monitoring
the day-to-day operation of the
system. MAGAWASA has the
responsibility of running the
system locally, and for purchasing
the water in bulk from Kahama
Shinyanga Water Supply and
Sanitation Authority (KASHWASA),
storing it in two overhead tanks,
and distributing it through the
prepay arrangement.
RESEARCH BRIEF PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIA
Happy girl in Kishapu.
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Water point in Kishapu.
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RESEARCH BRIEF PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIA
Women fetching water at E-Water point in Babati, Sangara Village.
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Prepaid water system in Karatu district
The second prepaid water system studied is
implemented in Karatu by Catholic Relief Services
(CRS). The water is supplied through staffed
water kiosks (also referred to as ‘water ATMs’ and
‘water distribution points’). The water supply
system comprises two deep boreholes fitted with
solar pumping systems, elevated storage tanks,
transmission and distribution networks, and water
kiosks. Users buy a ‘smart card’, which is loaded with
water credits bought through kiosk operators
and used to access the water.
The day-to-day management of the system
is the responsibility of two local water
authorities: Karatu Village Water Supply
(KAVIWASU) and Endamarariek/Endabash
Water Supply (ENDAWASU). These authorities
are also responsible for setting water tariffs (upon
consultation with the Energy and Water Utilities
Regulatory Authority (EWURA)), collecting
revenue, and employing the kiosk operators.
Prepaid water system in Babati and Arusha districts
eWATERpay is implemented by a consortium led by WaterAid in Endanachan and Gidewari villages in Babati district. The system has
also been piloted in some areas of Arusha District Council. The system is a cheap, simple technology through which users can purchase credit using the eWATERapp on smartphones, through mobile money, or by receiving a remote gift via PayPal. The system provides live monitoring of each tap and operators can track and detect faults, thus allowing for efficient and timely operations and maintenance. The systems are implemented in partnership with the local COWSOs.
A token used by E-Water users to get water.
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Key findings• Prepaid water systems improve revenue collection
processes, which is an important requirement for
the sustainability of the systems. The certainty of the
revenues enhances the confidence and ability of
the local authorities to invest in the system, appoint
the staff, and to reach out to the users. Before the
introduction of prepaid water meters in Kishapu
and Karatu areas, water supply was not reliable,
the management of existing water points was not
effective, and the revenue collected was far less
than it should have been. The prepaid water system
has changed this situation as
it allows for better collection
and management of revenues,
which provide resources for the
repair and maintenance of the
system. The investment made
on the water system, combined
with effective operations and
maintenance, has resulted in
regular water supply to the users.
• Prepaid water systems are an effective and efficient way of collecting water tariffs and
offer a high level of convenience
to both the users and local
water supply authorities.
They save time and do not
require unnecessary paperwork.
Moreover, the systems minimise
cash transactions and, therefore,
contribute to the transparency
of the tariff collection.
• Prepaid water systems provide better value for money. The
majority of residents in the
project areas have used the
installed prepaid water systems
and have not raised any major
concerns over the price of water.
Maganzo village, for example,
did not have a reliable water supply system before
the project that was implemented by ICS with HDIF
support. The prepaid water system installed by ICS
has significantly contributed to improving access
to safe water in an area previously not served. It has
also reduced the price of water by more than half. All
households that were interviewed expressed a high
level of satisfaction with the prepaid water service.
• New businesses and livelihoods opportunities
around the supply of water have emerged. The
systems have led to a range of economic opportunities
including jobs for e-credit sellers and water vendors,
RESEARCH BRIEF PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIA
A lady fetching water at ICS water point in Kishapu, Maganzo village, Shinyanga.
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many of whom have set up shops within the water
kiosks to earn extra income. Paulina, for example, is a
water kiosk operator in Karatu making the most of the
opportunity. Her kiosk is full of water storage drums,
and when water is not available at the kiosk she uses
her stored water for watering her livestock, and for
irrigating her vegetables, which she later sells to local
restaurants.
• Prepaid water systems generate real time data on water collection by users, tariffs collected from users, and water point functionality. Key
data on water flow rates and pressure are used for
monitoring the system and are helpful evidence for
future planning.
• The use of solar energy can significantly improve the reliability of water stations. The prepaid water
system installed in Karatu piloted the use of solar
energy for pumping water and for charging the system.
The results show that using solar power increases
the reliability of water supply. Moreover, despite a
higher initial cost, solar power has significantly lower
recurring costs than other power sources.
• Prepaid water systems and water dispensers are not a problem-free solution, yet many of the present
challenges may be overcome as the technology is
further developed and is tested. For example, the
system installed by CRS and eWaterpay currently does
not support multiple taps, nor does it operate well
when the water pressure is low. On the other hand,
Susteq technology installed by ICS in Maganzo can
handle multiple taps, although this aspect is yet to
be implemented.
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A boy child heading to the water point in Maganzo village, Shinyanga.
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RESEARCH BRIEF PERFORMANCE OF PREPAID WATER SYSTEMS IN RURAL TANZANIA
RecommendationsLocal water authorities should invest in better revenue management systems. Prepaid water systems
improve overall revenue collection and management,
making it possible to reinvest part of the profits back
into the system. However, for this reinvestment to be of
value, local authorities need to improve their priority-
setting and decision-making processes on how the
generated profits are used. Specifically, this study found
that better financial analysis is needed at the local level
to inform decisions on whether to reinvest the profits on
(a) system expansion in the same geographical locations;
(b) system scale-up in new geographical locations; (c)
current systems consolidation; or (d) capacity-building
of staff.
Local water authorities should develop partnerships with technology providers that are independent from the project’s INGO implementers. These unaided
partnerships are crucial in sustaining and scaling up the
prepaid water meter systems. Among other things, this
means agreeing on and enforcing software licensing
agreements, protocols on data management and
sharing, and the use of future warranties; as well as
understanding the technology provider’s role and
responsibilities during and after the installation of
prepaid water meters (including after-sale services by
technology providers).
Use generated data on issues such as water collection, repairs, and seasonal demands as evidence for future planning. Prepaid water systems generate important
data, which could be used to inform future activities and
investments. Within the pilot projects, these data were
only used marginally to understand trends in revenue
collection.
COWSOs should commit to data privacy. As with other
data management systems, prepaid water systems raise
questions about the ownership and sharing of data. A
high-level discussion facilitated by HDIF in 2019, and
which involved key stakeholders in the country’s water
sector, deliberated over this issue and agreed that the
ownership of users’ data is the users themselves. This
data can be managed by the COWSOs but should
not be shared publicly unless there is approval from
the user. Other non-user-identifying data, such as
aggregated amount of revenues collected per meter,
will be managed by the COWSOs and can be shared at
its discretion.
Introduce lifeline water tariffs for the poorest. Two
of the three systems studied operate on a flat tariff and
do not provide effective options for the poorest and
most marginalised members of communities to access
water at cheaper prices. There is a need for authorities
managing these systems to identify ways to set lower
tariff rates and introduce lifeline water volumes for
those who otherwise cannot afford them. In addition,
the water tariffs are set up in consultation with EWURA,
a national level regulatory organisation. These tariffs
are usually based on a community consultation and a
comparison of tariffs in other regions. The tariff-setting
procedure needs greater clarity and should consider
key factors such as affordability, investment made, and
operations and maintenance needs.
Involve private sector partners in developing supply
chains of spare parts.
E-Water point in Sangara Village, Babati.
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References
Whaley, T.L. and Cleaver, F. (2017) ‘Can “Functionality”
Save the Community Management Model of Rural Water
Supply?’, Water Resources and Rural Development 9.56: 66
Foster, T. and Hope, R. (2017) ‘Evaluating Waterpoint
Sustainability and Access Implications of Revenue
Collection Approaches in Rural Kenya’, Water Resources
Research 53.2: 1473–1490.
Acknowledgements
Report authors: Dr Hans C. Komakech, Nelson Mandela
African Institutions of Science and Technology (NM-AIST);
Dr Mansoor Ali; and Muzafar Kaemdin, HDIF-Palladium.
The opinions expressed in this briefing are those of
the authors and do not necessarily reflect the views of
DFID. Acknowledgement and quotes to be referenced
as follows:
Komakech, H.C.; Ali, M. and Kaemdin, M. (2019)
‘Assessing the Performance of Prepaid Water Systems
in Rural Tanzania’, HDIF Research Briefing, Dar es Salaam:
Human Development Innovation Fund
PO Box 76724 | Plot 436 Block 11 | TCRS Building, 2nd Floor Mwai Kibaki Road / Kiko Avenue | Mikocheni Area Dar es Salaam | Tanzania | East Africa Email: [email protected] | Phone / Fax: +255 22 270 1542
www.hdif-tz.org @HDIFtz www.facebook.com/HDIFTanzania HDIF Tanzania
Managed by Funded by
ConclusionThe research has found that prepaid water systems are a
potential game changer in the sustainability of rural water
service delivery in Tanzania. They can create a transparent
system for revenue collection and management. They are
also inclusive, in that nearly anyone with a water card can
use it with minimum guidance and support. However,
these systems are not a panacea for all the problems
concerning rural water supply. There is currently so much
focus on the technical aspect of the innovation (the kiosk,
tags, pipes, etc.) that insufficient investments are being
made into the management model or better use of the
generated data.
The long-term sustainability of the rural water supply is
strongly dependent on the business model adopted. In
both Karatu and Kishapu, the capacity of the water utility
or COWSO to plan and manage the water project will
determine its sustainability. At present, it is not clear if
the utilities or COWSOs can make such long-term plans.
We conclude, therefore, that further efforts need to be
put into the business models underlying the prepaid
water systems.
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