Vol 5 No 9 (2019): EPH-International Journal of Business & Management Science (ISSN: 2208-2190)
Articles

The Dilemma of Commercialising Social Service Delivery in Zambia: A Case of Southern Water and Sewerage Company Limited in Zambia

Published September 11, 2019
How to Cite
Charles Shindaile. (2019). The Dilemma of Commercialising Social Service Delivery in Zambia. EPH - International Journal of Business & Management Science (ISSN: 2208-2190), 5(9), 01-215. Retrieved from https://ephjournal.com/index.php/bms/article/view/1549

Abstract

Water supply and sanitation sub-sector in Zambia has undergone major reforms. These reforms were by and large championed by the international financial institutions (IFI) who focused on
privatisation of the water sector with little attention on social service delivery. The Zambian Government settled for commercialisation instead. In Zambia water supply and sewerage service
provision still carries a social value and every citizen should access the service regardless. The dilemma is, therefore, commercialising water supply and sewerage service delivery with a social
value whilst ensuring access by everyone in the urban and peri-urban that includes the vulnerable and poor.
This study was carried out to assess whether commercialisation of water supply and sanitation sector was achieving its intended purpose of improving the quality of water supply and sanitation
services delivered to the customers. It was also meant to determine whether Southern Water and Sewerage Company Limited, a commercial utility involved in the delivery of these services, was
financially self sustainable. The quantitative data was obtained through 500 administered on the selected consumers in the service areas of the four purposefully selected towns of Livingstone, Choma, Mazabuka and Monze, with a total response of 497. In addition 27 key informants were interviewed in an effort to get in-depth data on the commercialisation of the water sector. Further, data was collected by observation method. Secondary data comprised company annual financial reports and other publications such as water sector reports, and annual financial reports (2001 to 2016).
The Company could not attract the much needed private sector investment. Though service has  improved after commercialisation coverage is not yet 100 percent in both water and sewerage. It
is recommended that the Southern Water and Sewerage Company Limited and the other water utilities in the country should be left to operate as prescribed under the Companies Act Cap. 388
if they are to attract private sector investment. Further, the Government of Zambia should concentrate on resource mobilisation (especially for investments) for the sector.

Downloads

Download data is not yet available.

References

  1. Ahujah (2001). Principles of Economics: Perfect Competition in the Long Run, University of Minnesota. M. Libraries Publishing
  2. Allen, J. (2010). Literature Review: Aboriginal Women and Water. Toronto: National Network on Environments and Women’s Health.
  3. Ba, H. (2006). “Water Privatisation in Senegal.” Pambazuka News, no. 7
  4. http://www.pambazuka.org/fr/category/features34815. (accessed on 26 February 2018)
  5. Bakker, K. (2001). Paying for Water: Water Pricing and Equity in England and Wales. Transactions of the Institute of British Geographers NS, 26: 143-164.
  6. Bakker, K. (2007). The “Commons” Versus the “Commodity”: Alter-globalization, Antiprivatization and the Human Right to Water in the Global South. University of British Columbia, Vancouver, BC, Canada.
  7. Bakker, K., & Cameron, D. (2002). Setting a Direction in Hamilton: Good Governance in
  8. Municipal Restructuring of Water and Wastewater Services in Canada (Working Paper No. 1). Toronto: Munk Centre for International Studies.
  9. Barlow, M. (2008) Our Water Commons: Toward a new Freshwater Narrative. Ottawa: The Council of Canadians. Online: http://www.canadians.org/water/publications/
  10. watercommons/water%20commons%20-%20web.pdf (accessed on 25 May 2018)
  11. Bayliss, Kate (2003). “Utility Privatisation in Sub-Saharan Africa: A Case Study of Water.” Journal of Modern African Studies, Vol41, No.4. 507-531.
  12. Baietti, Kingdom, Van Ginneken (2006). Water Supply & Sanitation Working Notes. Note No 9.
  13. February 2006, Characteristics of Well Performing Utilities: www.worldbank.org/watsan. (accessed on 3 June 2014)
  14. Blackstock, M. (2001). Water: A First Nations’ Spiritual and Ecological Perspective.
  15. Perspectives: B.C. Journal of Ecosystems and Management, 1(1): 1-14.
  16. Boland, J. J. and Whittington, D. 2000. “The Political Economy of Water Tariff Design in Developing Countries: Increasing Block Tariffs versus Uniform Price with Rebate.”. In The
  17. Political Economy of Water Pricing Reforms, edited by A. Dinar, pp 215–235. New York: Oxford University Press for the World Bank.
  18. Capacity building module: Attributes of well-performing water Utilities, WB, WSP, BNWP http://www.treasurer.ca.gov/ratings/moodys.asp (accessed 3 June 2014).
  19. Central Statistics Office Zambia (2010), “Census of Housing and population, Lusaka. Zambia.”
  20. Central Statistics Office Zambia (2011), Zambia Population and Demographic Projection, 2011 –2035, 5 July 2013
  21. Central Statistics Office (2012), “Zambia economic census Reports. Lusaka, Zambia.”
  22. Central Statistics Office (2012). Informal Sector in Zambia. Lusaka, Zambia.
  23. Chitonge, H. (2011), ‘A decade of implementing water services reform in Zambia: Review of outcomes, challenges and opportunities’, Water Alternatives, Vol. 4, No. 3, pp. 1-22.
  24. Chola, P. 2003. Integrated water resource management in Zambia. Paper presented at the National Stakeholder Consultation Forum, Water Resource Action Programme, Lusaka, 17-18 November 2003.
  25. Connor, R. Jean-Marc Faures, Kuylenstierna, J., (2009) “Chapter 7, Evaluation of water use,” Water in a changing world, (World Water Development Report 3, 2009).
  26. http://www.unesco.org/water/wwap/wwdr/wwdr3/pdf/18_WWDR3_ch_7.pdf 6. “Vital Water Graphics. Accessed June 21, 2018
  27. Creswell, W. J. (2012), “Educational Research, Planning, Conducting, and Evaluating Quantitative and Qualitative Research, 4th Edition: Pearson Education, Inc., 501 Boylston Street, Boston, MA 02116.” University of Nebraska–Lincoln.
  28. Da Cruz, N. F. & Sanford V. B. (2013). Managing Public Utilities, Lessons from Florida: Journal of Local Self Government, Vol. 11, No. 2, pp. 101-118.
  29. David, L.M., (1997), Focus Group As Qualitative Research: Qualitative Research Methods Series Volume 16, Second Edition, Portland State University.
  30. Davies, A. (2006), Best Practice in Corporate Finance; Building Reputation and Sustainable success, P.7, England, Gower Publishing Company.
  31. Draper, Stephen (2008). “Limits to Water Privatization.” Journal of Water Resources Planning and Management. Volume 134, No. 6, Nov/Dec: 493- 503
  32. Du Toit, G.S., Erasmus, B.J., Strydom, J.W. (2007). Introduction to Business Management, 7th Edition: Oxford University Press, Southern Africa, pp 433-433.
  33. Esterl, Mike (2006). “Great Expectations for Private Water Fail to Pan Out.” Wall Street Journal, June 26: A1.
  34. Fielden, John, 2008. “Global Trends in University Governance.” World Bank Education Paper
  35. Series, World Bank, Washington DC. Available via the Internet:
  36. http://siteresources.worldbank.org/EDUCATION/Resources/278200-
  37. /547664-1099079956815/Global_Trends_University_Governance_webversion.pdf
  38. Filho, M. R., Correa, J. S. O., Dinar. A (2015). Impact of access to water and sewerage ser
  39. vices on educational attainment. https://doi.org/10.1016/j.wre.2015.11.002. Water Resources and Economics. Volume 14 Pages 31-43.
  40. Fletcher, J. (1845). “Historical and statistical account of the present system of supplying the Metropolis with water.” Journal of the Statistical Society of London, Vol. 8, No. 2, pp. 148–181.
  41. FNDP (2006), WSP, (2009), “GoZ (Government of Zambia), (2006).” Fifth National Development Plan 2006-2010. Lusaka, Zambia.
  42. Foster, V., Yepes. T. (2006). Is Cost Recovery a Feasible Objective for Water and Electricity?
  43. Fundanga, M. C. & A. Mwaba (2000), “Privatisation of Public Enterprises in Zambia: An Evalua
  44. tion of the Policies, Procedures and Experiences.” Economic Research Papers No. 35. African Development bank.
  45. Fry, Lauren M. et al (2008). “Water & non-water-related challenges of achieving global sewer age coverage”. Environmental Science & Technology, 42: 4298-4304.
  46. GkW (2008), Rehabilitation and Expansion of Water Supply and Sewerage Infrastructure, Southern Province, Zambia: Final Project Report, 2008
  47. GkW Consultants (2004/05), “Willingness to Paid and Provision of Water Services to the urban poor, Zambia.
  48. GoZ (Government of Zambia), (2011). Environmental Management Act no. 12. . Lusaka, Zambia.
  49. GoZ (Government of Zambia), (1991). Local Government Act Cap 281. Lusaka: Zambia.
  50. GoZ (Government of Zambia), (1997). The Water Supply and Sanitation Act, No. 28. Lusaka: Zambia.
  51. Gray, J. A. (2013). Water: A Resource like any other? , Canadian water resources journal. 8:4, 35- 41, doi: 10.4296/cwrj0804035. https://doi.org/10.4296/cwrj0804035. accessed on 16th feb, 2016. or http://www.tandfonline.com/action/journalInformation?journalCode=tcwr20
  52. Grey, D. & C. W. Sadoff (2006). “Water for Growth and Development” IV World Water Forum. Comision Nacional del Agua: Mexico City. The World Bank.
  53. GTZ (2004), “Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) GmbH (2004).”
  54. Sharing the Experience on Regulation in the Water Sector: SOWAS-Sub-Saharan Africa. Lusaka: GTZ.
  55. Guislain, P. (1997), “The Privatisation Challenge: A Strategic, Legal, and Institutional Analysis of International Experience.” The World Bank, Washington, D. C.
  56. Gujarati, N. D. (2006), “Essentials of Econometrics. 3rd Ed: Mc Graw Hill Edition.” Boston BurrRidge.
  57. Hall, D. (2004). Water in Public Hands. Public Services International Research Unit, London. www.psiru.org, accessed on 12 April 2017.
  58. Homby A.S. (1989), Oxford Advanced Leaner’s Dictionary of Current English, Fourth Edition, Oxford University Press
  59. House R.S., (2014), “public utilities in the age of partnership: Lessons From private participation in urban water supply “, (MIM, University of Maryland, University College) A Thesis Submitted For The Degree of PHD, Public Policy Lee Kuan Yew School of Public Policy National University of Singapore 2014.
  60. https://scholarbank.nus.edu.sg/bitstream/10635/113292/1/RSH_WaterPPP_Dissertation_Nov2014 (accesed 19 April 2018)
  61. Jehl, D. (2003). “As cities move to privatize water, Atlanta steps back.” New York.
  62. Kalu, P. U. (2003), “Drivers of Change Report: A case Study of the Lagos State Water Corporation.”
  63. Kothari, C.R. (2004), “Research Methodology: Methods and Techniques.” New Age Internation al (P) Ltd., Published by New Age International (P) Ltd., Publishers.
  64. Kotler, P.T. and Armstrong, G., (2007), Marketing: An Introduction, 8th Edition, Prentice Hall Inc. New Jersey, USA.
  65. Kombo, K. D. and Tromp, L. A. D. (2006). Proposal and thesis writing: an introduction. Nairobi: Pauline Publications Africa.
  66. Lapan, S. D. & K. deMarrais (2004). Qualitative interview studies: Learning through experience. In K. deMarrais & S.D. Lapin (Eds.) Foundations for research: Methods of inquiry in education and the social sciences (pp. 51-68). Mahwah: Lawrence Erlbaum Associates,
  67. Publishers.
  68. Lao, Christine and Saint, W., (2008), “ Legal Frameworks for Tertiary Education in Sub-Saharan Africa: The Quest for Institutional Responsiveness.” Washington DC: The World Bank. Lee (2007), “Social policies and private sector participation in water supply.”
  69. https://www.researchgate.net/.../264844793_Social_policies_and_private_sector_particip...
  70. (accessed on 26 February 2018)
  71. Lipman, Federic D., and Lipman, Keith L. (2006), Corporate Governance Best Practices: Strate gies for Public, Private, and Not-for-Profit Organisations, p.3, New Jersey, John Wiley & Sons, Inc. Living Conditions Monitoring Survey (2008). Central Statistical Office. Lusaka.
  72. McMcosker (1998), Ross & Westerfield (1995) & Ronan (1998), Corporate Finance:
  73. Fundamentals of Corporate Finance, Third Edition, University of Phoenix. McGraw-Hill Primis Custom Publishing, Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Lisbon London Madrid Mexico City Milan New Delhi Seoul Singapore Sydney Taipei Toronto.
  74. Mbuvi, D. (2012), “Utility reforms and performance of the urban water sector in Africa (Doctor al thesis).” Maastricht University, The Netherlands.
  75. McPherson, (2009);Standard &. Poor, (2008); (Luukko, 2007), The Significance of Privatisation and Commercialisation Trends for Women’s Health.” Submission to the Office of the
  76. High Commissioner for Human Rights for the Independent Expert on the issue of human rights obligations related to access to safe drinking water and sanitation
  77. https://www.ohchr.org/Documents/Issues/Water/.../Council_of_Canadians.pdf (accessed on 24 April 2018)
  78. Mueller, Jennifer & Greenfield, Erin (2008). “RWE unloads American Water on Wall Street Cheaper than Expected.” Food and Water Watch. Online
  79. Muhairwe, W. (2009), Uganda: Turn-around of the National Water and Sewerage Corporation MWDSEP, (1994),” (Ministry of Water Development, Sanitation and Environment Protection).
  80. The National Water Policy. The Republic of Zambia.
  81. Mwiya, L.M. (2002). The differential Treatment of the Entrepreneurial Borrowers by the lenders in Zambia. MBA Thesis. Kitwe.
  82. Ndulo, M. (1989), “Private Capital and Economic Development in Studies in Youth and Development.” Multimedia Publications, Lusaka, Zambia.
  83. NWASCO (National Water Supply and Sanitation Council) (2002), “Urban and Peri-urban Water Supply and Sanitation Sector Report 2001/02, NWASCO, Lusaka.” Available at www.nwasco.zm (accessed 15 April 2018).
  84. NWASCO (National Water and Sanitation Council), (2003). Urban and peri-urban water supply and sanitation sector report 2002/03. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  85. NWASCO, (2004). Urban and peri-urban water supply and sanitation sector report 2002/03. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  86. NWASCO, (2004). Urban and peri-urban water supply and sanitation sector report 2003/04. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  87. NWASCO, (2005). Urban and peri-urban water supply and sanitation sector report 2004/05. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  88. NWASCO. (2006). Urban and peri-urban water supply and sanitation sector report 2005/06. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  89. NWASCO, (2007). Urban and peri-urban water supply and sanitation sector report 2006/07. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  90. NWASCO. (2008). Urban and peri-urban water supply and sanitation sector report 2007/08. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  91. NWASCO. (2009). Urban and peri-urban water supply and sanitation sector report 2008/09. Lusaka: NWASCO. www.nwasco.zm (accessed 15 April 2018)
  92. WASCO. (2010). Urban and peri-urban water supply and sanitation sector report 2009/10. Lusaka: NWASCO. www.nwasco.zm (accessed 18 April 2018)
  93. NWASCO (National Water Supply and Sanitation Council) (2011), “Urban and Peri-urban Water Supply and Sanitation Sector Report 2010/11, NWASCO, Lusaka.” Available at www.nwasco.zm (accessed 18 April 2018).
  94. NWASCO (National Water Supply and Sanitation Council) (2012), “Urban and Peri-urban Water Supply and Sanitation Sector Report 2011/12, NWASCO, Lusaka.” Available at www.nwasco.zm (accessed 18 April 2018).
  95. NWASCO (National Water Supply and Sanitation Council), “(2013). Urban Water and Sanita
  96. tion Sector Report 2013.” Lusaka, Zambia: National Water Supply and Sanitation Council. www.nwasco.zm (accessed 18 April 2018)
  97. NWASCO (National Water Supply and Sanitation Council) (2014), “Urban Water and Sanitation Sector Report 2014.” Lusaka, Zambia: National Water Supply and Sanitation Council. www.nwasco.zm (accessed 18 April 2018)
  98. NWASCO (National Water Supply and Sanitation Council). (2015), “Urban Water and Sanitation
  99. Sector Report 2015.” Lusaka, Zambia: National Water Supply and Sanitation Council. www.nwasco.zm (accessed 18 April 2018)
  100. NWASCO (National Water Supply and Sanitation Council) (2016), “Urban and peri-urban water supply and sanitation sector report 2016.” Lusaka, Zambia: National Water Supply and Sanitation Council. www.nwasco.zm (accessed 18 April 2018).
  101. Ohemeng, F. & John, G. (2008). “When Markets Fail to Deliver: an Examination of the
  102. Privatization and De-privatization of Waste and Wastewater Services Delivery in Hamilton.” Canadian Public Administration, 51.3 Sept: 475-500.
  103. Olumuyiwa Coker (2004). Water sector reforms challenges and opportunities: an overview of Lagos State Water Corporation Lagos, Nigeria Private Sector Participation programme, Lagos State Water Corporation, Ijora, Lagos, Nigeria
  104. Pavri, V., et al, (2009). Women and Water in Canada. Published by: National Network on Environments and Women’s Health Suite 5021, TEL Building York University 4700 Keele Street Toronto, Ontario M3J 1P3
  105. Prasad, N. (2007), “Social Policies and Water Sector Reform: Markets, Business and Regulation
  106. Programme Paper Number 3 September 2007.” United Nations Research Institute for Social Development. UNRISD, Palais des Nations, 1211 Geneva 10, Switzerland.
  107. Public Citizen (2005). Waves of Regret, A Special Report by Public Citizen’s Water for All Program. June.
  108. GWP (2017), “Public sector water utilities (B2.01), 24 February 2017 https://www.gwp.org/en/learn/.../Water...Services/Public_sector_water_utilities/ (accessed on
  109. April 2018)
  110. Reynaud, A. (2016). Assessing the impact of full cost recovery of water services on European households. https://doi.org/10.1016/j.wre.2016.04.001. Volume 14, Pages 65-78.
  111. Reynaud, A. (2007), “Social Policies and Private Sector Participation in Water Supply — The
  112. Case of France.” Programme on Markets, Business and Regulation, UNRISD, Geneva.
  113. Richards, T., Doering, E., D`Souza, A., Lang, H., Plumm, H., Schaefer, D. & R. Werchota (2008), “Water Supply and Sanitation Sector Reforms in Kenya, Tanzania, Uganda and Zambia: Challenges and Lessons.” Published by: Deutsche Gesellschaft fuer Technische Zusammenarbeit (GTZ) GmbH www.gtz.de (accessed on 23 May 2018)
  114. Sawkins, J. and Dickie, V. (2007), “Social Policies and Private Sector Participation in Water Supply - The Case of Great Britain.” Programme on Markets, Business and Regulation, UNRISD, Geneva.
  115. Silvestre, H. C. & Gomes, C. R (2017). A resource-based view of utilities: The key-determinant
  116. factors for customer prices and organizational costs in the Portuguese water industry.
  117. https://doi.org/10.1016/j.wre.2017.09.002.
  118. Smith A. (1976). An Inquiry into the Nature and Causes of the Wealth of Nations. Vol. 1. Uni versity of Chicago Press, Chicago.
  119. Sitaraman, Srini (2008). “Privatization, Efficiency, Gender, Development and Inequality:
  120. Transnational Conflicts Over Access to Water and Sanitation.” Human Rights and Human Welfare. 8: 91-113.
  121. Smets, H. 2004. De l’eau pour tous. Académie de l’Eau. http://academie.oieau.fr/, accessed on 25 august 2016
  122. Solomon (2005). Corporate Governance and Accountability, Second Edition, p.8, England, John Wiley & Sons, Ltd.
  123. Southern Water and Sewerage Company Limited Annual Reports, 2001-2016
  124. Southern Water and Sewerage Company Limited Project Reports, 2013
  125. Spiller and Savedoff, (1999); WSP-PPIAF [Public-Private Infrastructure Advisory Facility],
  126. (2002), Characteristics of Well Performing Utilities, www.worldbank.org/watsan (accessed on 3 March 2014).
  127. Stoep, A.V., et al., (2009), “Scholarly Articles.” Suicide and Life: Thoughts of Death and Suicide in Early Adolescence. Guilford Press.
  128. The Canadian Catholic Organization for Development and Peace (2005). “World Bank Conditionality in Water Sector Privatisation: Cases from Ghana and the Philippines.” 633 Sherbrooke St. East Montréal (QC) Canada H1N 1A.
  129. Thomas W. Z., Norman M.S. and Doug W., (2008), Essentials of Entrepreneurship and Small Business Management, Pearson/Prentice Hall
  130. Tilley, E. et al., (2008). Compendium of Sanitation Systems and Technologies. Swiss Federal
  131. Institute of Aquatic Science and Technology (Eawag). Dubendorf, Switzerland.
  132. Todaro, M.P., Smith, S.C., (2015). Economic Development, 12th Edition: The Pearson Series in Economics.
  133. UN (2009), “Majority of world population face water shortages unless action taken, warns Migiro,” UN News Centre, (UN News Service, 5 Feb 2009), Accessed June 19, 2018.
  134. UN (2006), UN Water, Coordinating the UN's work on water and sanitation: World Water Development Report, 16 March 2006
  135. UNDP (2001), Human Development Report: Making New Technologies Work for Human Development
  136. Vander Stoep, W. S. & Johnston, D. D. (2009), “Research Methods for Everyday Life: Blending
  137. Qualitative and Quantitative Approaches.” Published by Jossey-Bass. A Wiley Imprint 989 Market Street, San Francisco, CA 94103.
  138. Varga, M., A. (2013), "A Study of Graduate Student Grief and Prolonged Grief Disorder." PhD
  139. diss., University of Tennessee. http://trace.tennessee.edu/utk_graddiss/1788. (accessed on 24 April 2018)
  140. Varghese (2007), “The Significance of Privatisation and Commercialisation Trends for Women’s
  141. Health.” Submission to the Office of the High Commissioner for Human Rights for the Independent Expert on the issue of human rights obligations related to access to safe drinking water and sanitation
  142. https://www.ohchr.org/Documents/Issues/Water/.../Council_of_Canadians.pdf (accessed on 24 April 2018)
  143. McGranahan, G., and D. L. Owen. (2006), Water in a changing world vol. 1 & 2: Public-Private
  144. Infrastructure Advisory Facility and World Bank, Washington, DC. Local Water and Sanitation Companies. 190
  145. WWO, (2010), “Water Facts & Water Stories from Across the Globe,” (The World Water Organization, 2010). http://www.theworldwater.org/water_facts.php. Accessed June 16,2018.
  146. Water Facts, (2012), The Water and Sanitation Crisis claims more lives through disease than war. https://www.pinterest.com/pin/167055467399031238/ (accessed 15 May 2018)
  147. Welch, Rachel (2007). “And Not a Drop to Drink: Water Privatization, Psuedo Sovereignty and the Female Burden.” Tulane Journal of International and Comparative Law. 15: 311-333.
  148. Whelan, Jessica & White, Rob (2005). “Does Privatizing Water Make Us Sick?” Health Sociology Review, 14.2, October: 135-145.
  149. World Bank (1990 & 1991), “Reports on Restructuring the Zambian economy.” Lusaka, Zambia.
  150. World Bank (1981). Accelerated Development in Sub- Sahara Africa. An Agenda for Action. International Bank for Reconstruction
  151. World Food Programme, UNESCO & WHO (1999). School Feeding Handbook. Rome, Italy.
  152. Yona, L. (2008). Financial Management Skills for Non-Finance Managers: Tagemi Printing Press.