Water privatisation could raise tariffs and weaken councils, activist warns

Khumbulani Maphosa said Zimbabwe should learn from countries that had introduced private water management arrangements, some of which were later abandoned. His remarks come as the government pushes for changes in water management, including the introduction of prepaid water meters.

“Tariffs generally increase under privatisation, and vandalism increases under privatisation. Local authorities are weakened under privatisation. Non-revenue water is not reduced under privatisation. Actually, the problems can become worse than under municipalisation,” Maphosa said.

He was speaking at a meeting on water privatisation dialogue meeting in Bulawayo on Thursday, as part of the Africa Week of Action Against Water Privatisation.

Citing Tanzania, Maphosa said the government terminated a 10-year lease agreement with private operator City Water in 2005, about 21 months after it began operating.

He said the arrangement had failed to deliver the expected improvements, while water charges had increased.

“In 2003, Tanzania started a project called City Water, and they entered into a 10-year lease contract. Unfortunately, that ended in 2005. The government terminated it in 2005 after it had operated for about 21 months. The major problem with City Water was tariffs. Water prices increased by about 180 percent under privatisation within that period of 21 months,” he said.

Maphosa also cited Ghana, where a private water management arrangement was introduced in 2006 and abandoned in 2011. He said tariffs had increased by 140% while non-revenue water remained above 50%, despite expectations that private management would reduce losses.

“There was an independent audit of the private entity, and the audit revealed that it had failed to meet almost every single performance and service target,” he said.

Turning to Zimbabwe, Maphosa said water losses remained a major challenge. He also cited an increase in water prices in Harare from US$0.96 to US$2.22 per cubic metre.

He raised concerns about the reliability and maintenance of prepaid water meters, citing problems reported in Plumtree, where meters allegedly malfunctioned and lithium batteries did not last as long as expected.

“There is also the problem of malfunctioning prepaid meters. For instance, in Plumtree, they had a serious problem regarding that. The meters were malfunctioning a lot, and the lithium batteries were not lasting as long as intended. Then there is also the problem of how you deal with breakages. You install a meter and then it breaks down. Who repairs it, and at whose cost?” Maphosa said.

Councillors raise concerns over water management

Ward 5 councillor Dumisani Octavious Nkomo said local authorities needed greater control over water services to address supply challenges effectively.

He argued that Zimbabwe’s water governance framework limited municipalities’ ability to manage the entire supply system, even though they were expected to provide water to residents.

“I think one of the challenges is that municipalities are not in control of what happens. I do not know about other jurisdictions, but in Zimbabwe, for example, look at the Water Act and the ZINWA Act. The Water Act says all water belongs to the President. Then, in terms of the laws of Zimbabwe, local authorities only bill and distribute water, but public water supply is supposed to be ZINWA,” Nkomo said.

Nkomo said Bulawayo needed about US$1bn to rehabilitate its water reticulation system, a cost he said the city could not meet from its existing budget.

He called for alternative financing arrangements to improve infrastructure while ensuring residents could afford water.

“My question also is, what are the alternatives to privatisation? Water must be financed. Bulawayo, for example, needs 1 billion US dollars to redo the water reticulation system. That is our whole budget. For the next five years, we will not be able to do it. To fix the water system now will take at least 1 billion US dollars. Where will that money come from? Who is going to pay for the water, and who is going to subsidise it? There is a cost,” he said.

Ward 2 councillor Adrian Moyo said discussions about prepaid water meters should focus on how the technology could be implemented reliably while protecting consumers from inaccurate charges.

He said faulty readings could arise from air trapped in pipes, particularly when water supplies were interrupted and restored under rationing schedules.

“For example, phantom water charges may arise because of air trapped in our pipes. We experience that, especially now with water rationing. When supplies are turned off and then turned back on, we experience the effects of air, instead of water pumping it will actually be air pumping. I think we need specialists to test those meters in such environments so that we can see how best the problem can be addressed,” Moyo said.