SwaterFrom tariffs to
SwaterFrom tariffs to trust: rethinking costrecovery in pro-poor water servicesThe Association of Water and Sanitation Institutions of South Africa explores how trust, transparency and tailored tariffstructures can help reimagine cost recovery in pro-poor water services, drawing on lessons from Kenya, Brazil and SouthAfrica’s own uneven track record.Opinion piece by Ramateu Monyokolo, Chairperson of the Rand Water Board and Chairperson of the Association of Waterand Sanitation Institutions of South Africa
waterSWWater is considered a strategic national resource and is recognisedas a constitutional right in South Africa. Nevertheless, theindustry is experiencing a significant downturn. South Africa’smunicipalities are drowning in debt. Non-revenue wateraverages 47% and consumer trust in public service delivery iseroding. Billions are owed to water boards, and the culture ofnon-payment continues to erode the foundations of water servicedelivery. At the heart of this challenge lies a critical policy tension:how to ensure sustainable cost recovery while protecting thepoorest from exclusion.The governance of South Africa’s water sector is distributedacross various levels of government, with regulatoryresponsibilities shared among the Department of Water andSanitation, municipalities, provincial departments, and thetreasury. This results in overextension, disparities, and variationsin standards enforcement. The current Water Services Authority(WSA) model allows politically governed municipalities to act asservice providers, blurring lines of accountability.As chairperson of the Association of Water and SanitationInstitutions of South Africa (AWSISA), I believe these challengespoint to the absence of a strong, independent regulatoryframework that enforces standards, regulates tariffs, and protectsconsumers and service providers. Regulatory independence isa foundational prerequisite for restoring South Africa’s watergovernance. Establishing an autonomous water and sanitationregulatory body in South Africa is imperative.Rebuilding trust will requirepolitical will and consistentinstitutional behaviour.The unsustainable status quoMunicipal debt to water boards in South Africa has soaredpast R28-billion. Many residential and institutional water userseither cannot or will not pay municipalities. The current systempenalises honest payers, undermines service reliability andtraps municipalities in a fiscal death spiral. Despite theconstitutional obligation to provide basic water services, thefinancial underpinnings of this mandate are collapsing in thehands of municipalities.Non-payment is often symptomatic of poor-quality servicesdelivered by municipalities, eroding public trust. The trustdeficit between citizens and local government is amplified byfrequent service interruptions, billing disputes and a perceptionthat payments do not result in improvements. Fraud, corruptionand the presence of underqualified municipal officials onlydeepen this divide.Additionally, municipalities receive various infrastructure grantsfrom the national treasury to maintain and expand infrastructurein anticipation of population growth. However, billions of randService magazine | 11
