Transformation

TANZANIA URBAN WATER SUPPLY AND SANITATION SERVICES: CHALLENGES AND THE NEED FOR A FRESH APPROACH Locations Themes Projects By Eng. Clement KIVEGALO: Consulting Engineer (CE 597) Urbanization: A Challenge and an Opportunity Tanzania is urbanizing at a remarkable pace, with cities expanding faster than the systems designed to support them. Today, nearly 40% of the population lives in urban areas. It is projected that the population will be more than double by 2050, placing unprecedented pressure on housing, water, sanitation, and urban infrastructure. In Dar es Salaam, one of the fastest-growing cities in the world, the population is on a clear trajectory towards megacity status, expected to exceed 10–12 million by 2030 and surpass 20 million by 2050. This is not merely a demographic shift; it is a defining national development challenge that will shape the country’s economic and social future. Yet this rapid urban expansion is not being matched by a commensurate evolution in service delivery systems. The pace, scale, and complexity of urban growth are outstripping the capacity of existing water supply and sanitation infrastructure, exposing deep structural weaknesses in how services are planned, financed, and managed. There is an uncomfortable truth we must confront: urban water supply and sanitation services in Tanzania are no longer keeping pace with reality. While demand continues to surge as a result of rapid urbanization, population growth, industrial expansion, and rising service expectations, service delivery systems are steadily falling behind. The question is no longer whether reform is needed; the real question is whether we are bold enough to pursue it. On the other hand, there is a question of mindset. Most utilities consider urbanization as merely a challenge while it can also be seen as a commercial and institutional opportunity. It expands demands, broadens the revenue base, and creates the scaled needed for efficient and financially sustainable water service delivery. The task before utilities is to organize themselves well enough to benefit from this growth. Lessons from RUWASA Experience History teaches us that meaningful development never happens without disruption. As the “Father of Classical Physics,” Isaac Newton, observed, systems remain unchanged unless acted upon by an external force. Similarly, one of the most influential scientists of the 20th century, Albert Einstein, famously warned against the futility of repeating the same actions while expecting different outcomes. Yet, this is precisely what is happening in the urban water sub-sector whereby existing structures that are increasingly becoming unfit for the purpose, are preserved while hoping for better results. We have seen before that bold thinking delivers results. The reforms initiated by the Ministry of Water in 2019, culminating in the establishment of the Rural Water Supply and Sanitation Agency (RUWASA), fundamentally transformed rural water service delivery. That shift required questioning long-held assumptions, challenging institutional arrangements, and making politically difficult decisions, thanks to the 5th and 6th Presidents of the United Republic of Tanzania who took bold decision to change the then long-standing “status quo”. Today, few would argue against its strategic importance. So why are we hesitant to apply the same courage to urban water supply and sanitation services? Current Performance of Urban Water Utilities Evidence from the Energy and Water Utilities Regulatory Authority (EWURA), the Controller and Auditor General (CAG), and Ministry of Water performance reviews paints a worrying picture: declining operational efficiency, high levels of Non-Revenue Water (NRW), poor cost recovery, weak asset management, overstretched infrastructure, and limited investment in sanitation. Many utilities are struggling to meet even basic technical and financial sustainability benchmarks. These are not temporary setbacks; they are structural signals of a system increasingly misaligned with the scale, speed, and complexity of urban growth. EWURA reports consistently show that while a few large utilities demonstrate relative strength, a significant number of small and medium urban utilities continue to underperform in key areas such as continuity of supply, sewerage coverage, billing efficiency, collection efficiency, and debt servicing capacity. According to EWURA, 54 out of 83 urban water utilities, nearly two-thirds, fail to meet even basic service and cost-recovery standards, exposing a system under severe strain. Many remain dependent on government subsidies simply to sustain operations, let alone expand infrastructure. Thoughtful Ambition: The Case for a National Water Grid Tanzania is pursuing an even bigger national ambition: the long-term vision of creating an interconnected national water grid, where multiple water sources across the country are linked to serve both urban centers and rural communities more reliably and efficiently, much like the national electricity grid. This is a transformative idea. It recognizes that water security can no longer depend solely on isolated town-based or village-based sources, especially in the face of climate variability, rapid urbanization, and growing demand. Undeniably, the ambition of creating the interconnected national water grid cannot be effectively delivered through a fragmented institutional model where each utility operates largely as an independent island. The national water grid requires strategic planning of bulk water production, transmission, storage, and inter-basin connectivity at a much higher level. It demands stronger governance of shared infrastructure, clearer asset ownership, professional management of bulk supply systems, and financing models capable of supporting large-scale strategic investments. In short, it requires institutions designed for integration and not fragmentation. The current model of semi-autonomous Water Supply and Sanitation Authorities (WSSAs), introduced in the late 1990s, may have been fit for purpose at the time. But nearly three decades later, it is time to ask a hard question: has “autonomy” truly delivered? Has it produced financially viable, efficient utilities, or has it created a fragmented landscape of small entities duplicating overheads, struggling to scale, and diluting accountability? Aren’t we preserving institutions for their historical value rather than their present performance? In a context where most utilities cannot even cover basic operational costs, autonomy without performance begins to look less like reform and more like drift. Clustering as an Intervention to Rescue Inefficient Small Town WSSAs Meanwhile, on its pursuit to improve service delivery in some smaller towns, the Ministry of Water is implementing what is commonly referred to

From Transition to Transformation: Reflections on the Next Phase of Tanzania’s Water Sector Locations Themes Projects It has now been nine months since I left the USAID Maji Safi (Clean Water and Sanitation) Project, following the decision by the U.S. Government to terminate funding. While the project regrettably ended prematurely, these past months have provided an important period of transition—one that allowed me time for deep self-reflection and renewed energy to serve my country in other capacities. Looking back at how quickly the months have passed, it has been quite a journey. From supporting former colleagues and staff as they adjusted to a new reality, to exploring new avenues where I can contribute meaningfully, the period has been both challenging and inspiring. On a personal level, this transition also gave me the opportunity to reconnect more closely with my family here in Dar es Salaam. Relocating and settling back into family life has been both grounding and rewarding. It also meant navigating an important milestone at home—supporting my daughter, Lyonelle, as she transitioned to a new school to join her brother Lancelot. Like many parents know, helping a child adjust to a new environment comes with its own mix of excitement and uncertainty. Seeing her gradually settle and thrive has been one of the most meaningful parts of this period. Professionally, this transition created a space to reflect on how I can continue contributing to Tanzania’s development journey in new ways. One outcome of this reflection has been the establishment of Third Alternative, a not-for-profit platform advancing community-led transformation by strengthening local institutions, systems, and enterprise-driven solutions for sustainable futures. Third Alternative is built on a simple but powerful belief: lasting transformation comes from local leadership, local innovation, and community ownership. Its vision is “Empowered local institutions and communities driving sustainable systems transformation,” and its mission is “Partnering with communities and local institutions to strengthen systems and unlock enterprise-led solutions for sustainable futures.” Our motto— “Shaping tomorrow, today”—reflects the belief that the future we aspire to see in our communities and systems must be actively built through the decisions, partnerships, and actions we take today. Through this platform, we aim to support initiatives that strengthen local and community institutions, unlock local entrepreneurship, and bridge the gap between development investments and sustainable service delivery. At the same time, the past months have also marked a transition from full-time employment into consulting. I have had the opportunity to work with a diverse set of partners on strategic planning and policy initiatives with institutions such as the Ministry of Energy, the National Planning Commission, and the Tanzania Investment and Special Economic Zones Authority. Alongside this, I have been involved in community climate-resilience initiatives in Kagera, Iringa, Mbeya, and Njombe, focusing on locally led approaches to climate-smart agriculture and livelihoods. While my work has diversified across several sectors, I have remained strongly engaged in the water sector—a field where I have built much of my professional experience and remain deeply passionate about contributing to its transformation. This includes ongoing work supporting DAWASA’s journey toward becoming a performance-driven utility, as well as providing short-term strategic advisory support to RUWASA as it continues strengthening rural water service delivery across the country. More recently, through my engagements in the sector over the past few weeks, I had the privilege to meet and engage with the senior leadership of the Ministry of Water, particularly the Minister for Water Hon. Jumaa Aweso (MP), Permanent Secretary Eng. Mwajuma Waziri, and colleagues from the private sector and development partners in several forums. These included the DAWASA Leadership Retreat, Boards of Directors Conference for Water Supply and Sanitation Authorities, and most recently the RUWASA and CBWSOs Annual General Meeting. These engagements were both insightful and encouraging. It became clear that the current leadership of the Ministry of Water is focusing on the next phase of sector transformation—moving beyond expanding access toward improving service quality, reliability, and sustainability, recognizing that coverage has already improved significantly over the past decade. From these discussions, four strategic priorities clearly emerged. First – Human Capital Development Strengthening leadership, technical capacity, and professionalization across WASH institutions is essential. The UN-Water GLAAS 2025 report highlights a critical workforce gap: globally, fewer than one-third of countries have sufficient human resources for core WASH functions—only 26% for drinking water, 15% for sanitation, and 18% for hygiene. Shortages span key functions such as planning, regulation, monitoring, infrastructure development, operations and maintenance, and community engagement. In Africa, many countries—including Tanzania—operate with less than half of the required workforce, particularly in engineering, system maintenance, and regulatory surveillance. The report also highlights persistent gender disparities: while women play a vital role in water management at household and community levels, they remain underrepresented in the professional workforce and leadership. This year’s World Water Day theme on Gender and Water is therefore a timely reminder: women and girls must be at the centre of water solutions—not only as users, but as leaders, engineers, scientists, and changemakers. Closing the WASH workforce gap through better training, workforce planning, gender-inclusive recruitment, and incentives for rural water service providers will be critical to turning infrastructure investments into sustainable services. Second – Alternative Financing Mobilizing new financing models—including private sector participation and market-based instruments—will be critical to sustain investments in water infrastructure and services. Tanzania’s FYDP IV financing framework estimates that TZS 477.747 trillion is required. Of these, TZS 24 trillion will be required for WASH and urban development over the next five years, with conservative estimates showing that WASH alone would require at least TZS 12 trillion. Importantly, the framework anticipates a major shift in financing sources: 70% from private capital, 30% from public financing, and 9–13% from innovative financing instruments. For the water sector, this translates into mobilizing roughly at least TZS 8.2 trillion from private investment and TZS 1.1–1.6 trillion through innovative mechanisms such as blended finance, climate funds, and water bonds. However, attracting this scale of financing will depend fundamentally on strong utility governance, improved operational efficiency,