The price of water in rural Africa : the Lesotho case

The economic value of water supply projects is not a high one in Africa. Project sustainability problems, population growth and insufficient revenues have all had their impact on the price of water. Pricing is difficult to determine in economically depressed areas, particularly for unsubsidized water projects. Revenues are low, the durability of the equipment is variable, and maintenance is often not regularly performed. The Water Authorities differ in organization and objectives from country to country. Economic costs, social costs and pricing, and project and management policies are presented in the publication. A case study in Lesotho concerning a water supply system is discussed, where the durability of the system was 20 years, and the cost was between $1.00 and $1.20 per cubic metre. Rural rates were higher than urban, and the cost estimate was based on free agricultural labour. Some of the suggestions given included banking of revenues to take advantage of interest rates, equal rates for urban and rural populations, and legally binding agreements for payment.