Actors affecting financial sustainability of water and sewerage provision in Ccape Town, South Africa

Abstract

Financial sustainability of water and sewerage provision is undermined by consumers’ inability and reluctance to pay service fees. Consequently, the escalation of operational and maintenance costs of water and sewerage provision is a major challenge facing South African municipalities. This study examines the provision of water and sewerage services and presents a strategic framework to manage revenue collection to achieve water and sewerage provision financial sustainability. The study applied interpretive epistemology research method. Content analysis was used to collect and analyse data for an improved understanding of service provision and revenue collection mantra. Unlike the other method such as the exploratory research method that provides a description of the observed phenomenon, an interpretive epistemology methodology provides deeper insights into management strategies that are required in order to achieve sustainable water and sewerage provision. The main objective of this study was to investigate factors affecting financial sustainability of water and sewerage provision in Cape Town. The qualitative data were analysed using content method of analysis to gain better meaning of the phenomenon being studied. The results show that although the water and sanitation department of the participating organisation is making efforts to generate revenue through implementing water and sanitation services payments, there are some residents who refuse to pay for services, resulting in revenue loss. The other reason for loss of revenue is unaccounted water which is the focus of the water and sewerage, demand management and strategy section; this is as a result of leaks, illegal connections, unregistered car wash bays, unmetered connections and informal settlement areas which do not get enough subsidies. The reasons advanced for unwillingness to pay for water and sanitation services by consumers were unemployment, poverty, unequal distribution of services and general ignorance. This study has found evidence of a reluctance toward service payment by participating consumers – requiring strategies to encourage rates payments.