Utility bodies in Africa have been challenged to embrace change in operational and financial frameworks amid growing challenges of non-payment of bills by government institutions and donor fatigue.

Deputy Managing director technical services for National Water and Sewerage Corporation in Uganda Engineer Johnson Amayo said during a high-level dialogue at the ongoing Afwasa Congress and exhibition in Kampala that donor fatigue is a common challenge utilities are struggling to deal with in the region demanding a shift in financing policies and strategies.

“When it comes to financing water infrastructure, we need to attract all forms of financing including grants and credit facilities but most importantly is for the water utilities to build their own capacities to mobilize domestic resources,” he observed.

Nonetheless, he said the utilities must learn to understand and accept aid or loans whose terms are favorable for the institutions to be self-reliant.

“Some institutions come and give you aid in quotes where 80% is paid to external staff. That kind of aid is not aid,” he said, adding that companies must embrace strategies that would help use the aid as an investment.

Like most utilities, revenues collected through bills will never be enough to support water projects aimed at improving access, efficiency and quality of water supplied.  

It is reported that a significant portion of investments in Africa's water sector is supported through aid from international development agencies.

Currently, US$10 to US$19 billion is invested every year on water infrastructure investment in Africa and at least an additional US$30 billion every year needs to be invested by 2030.

One of the players in the sector from South Africa, Sipho Mosai suggests that for utilities to become more sustainable, governments and water users must learn to honor their bills and understand that the water they get is not for free.

“Our governments must learn to understand the commercial aspect of running the water supply business. They must understand that there is no free water, they need to pay their bills, consumers must learn to use water responsibly,” explained Mosai.

It is estimated that government agencies owe water utilities huge sums of money which compromises their ability to expand provision of services to communities.

In Uganda for instance the government owes the National Water and Sewerage Corporation over sh81 billion in unpaid water bills as of January 31, 2024. In South Africa, water boards are owed 23.4 billion rand ($1.3 billion) in unpaid water bills.