Profitable Rural Water Services : Myth or Reality ?
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Services d'eau rurale rentables : Mythe ou réalité ?
Evidence from Mali and Burkina Faso
rapport Feb 2025 ; 6 pages
Ed. UDUMA - Cotonou
Téléchargeable sous format: PdF
(720 ko)
Abstract:
Sustainable access to safe drinking water (SDG6) remains a critical development challenge, particularly in rural areas where 60% of the population lacks access to safely managed water services. This study examines the financial viability of different water provision models in rural Mali and Burkina Faso, offering valuable insights for policymakers and investors.
An analysis by Open Capital Advisors of Uduma’s operations during 2023 indicates that it may be possible for private operators of publicly owned large water networks in rural areas to achieve operational profitability under long-term operation and maintenance (O&M) contracts. However, smaller-scale solutions such as manual pumps and solar-powered stations face significant profitability challenges without substantial scale and cross subsidization from larger systems, and will require some level of grant funding to cover O&M costs and achieve sustainable services. Catalytic results based funding (RBF) is an important source of supplemental revenue to help rural water utilities transition toward financial sustainability by enabling infrastructure improvements and growth in consumption in higher-density rural areas while optimizing and maintaining service delivery in less densely populated rural areas. In all situations, the financial viability of professional rural water services depends on key government decisions on tariff levels, public or private responsibility for investment and renewal of capital assets (pumps and pipe networks), and the length and terms of the concessions granted to private operators.
These insights underscore that professional rural water utilities must manage diverse system portfolios to enable cross-subsidization. At the same time, access to catalytic RBF is essential for improving overall profitability and enabling scale. This analysis provides valuable guidance for governments and funders on how to structure and support the establishment of an optimum mix of services, regulatory frameworks, affordable tariffs, and appropriate funding mechanisms to support.
Mots clefs: |
coûts, prix, tarifs (CI) (DT) (OP) , rural (CI) (DT) (OP) , service public de l'eau (CI) (DT) (OP) |
Editeur/Diffuseur: |
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UDUMA - Cotonou - Bénin |
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