Africa Water, Sanitation & Hygiene 2014 Sept - Oct Vol. 9 No.5 | Page 36

Regulation

Lessons from the Field

Prepaid Water in Urban Africa
By Chris Heymans co-authors: Kathy Eales
the utility tariff, without an intermediary’s markup
and limited hours. Prepaid household connections
help manage the risk to customers of debt and
possible disconnection and debt, and the risk to
service providers of bad debt. Prepaid meters on
institutional customers consuming large volumes
help manage demand and debt risk, and improved
collection can support cross-subsidization to poor
customers. Of the three applications, prepaid
public standpipes seem most likely to enable water
utilities to serve poor households better and offset
investment and running costs, provided there is
a distribution network with adequate pressure,
convenient credit purchase points, and ability to
address faults promptly.

Water reforms have produced significant impacts on development, including Prepaid water involves far more than metering
improvements to drinking water access Credit WaterSan Perspective and new technology. Technically, the system
comprises metering, dispensing, and credit-loading
an prepaid systems become an instrument to improve components. Its delivery system hinges on several factors.
access and quality of water services to poor people in
The first is effective credit vending through functional and
African cities and towns? Or does prepayment deny poor
accessible purchase points, close to customers, easy to use
people more access to water? Do prepaid systems cost too at flexible hours, and reliable. Second, close monitoring
much and impose more technical, affordability and social
and rapid response is essential to identify and resolve
pressure on service providers already struggling to cope
problems quickly. And a strong focus on communication
with growing demand? And what do customers think?
with customers is essential, backed up by a service team
A new study from the World Bank’s Water and Sanitation
geared to act swiftly to remedy faults that affect the supply
Program (WSP), The Limits and Possibilities of Prepaid
of water that customers have already paid for.
Water in Urban Africa: Lessons from the Field, explores
Prepayment can benefit customers, and most
these questions, drawing on evidence from eight city case
seem to like this option. Customers are not primarily
studies: Kampala, Nairobi and Nakuru, Lusaka, Maputo,
interested in the technology. They want good, affordable
Mogale City, Maseru and Windhoek. Most readers know
services, reliably delivered. Many say that prepaid systems
that in this context new approaches are urgently needed.
enable them to manage their accounts more directly, and
While urbanization continues to accelerate in Africa, large
they know where they sta