1. Getting Africa on Track to Reach the WSS MDGs WISA Conference, Livingstone November 2007 Piers Cross

2. 2Outline 1.Trends in Global WSS Development 2.Results from 2006 Africa Country Status Overviews 3.Reform and Innovation 4.Getting Africa on Track to Meet the WSS MDGs

3. 3 1980s 1990s2000-2007 A quarter century of changes in the global WSS sector ’80s water decade ’00 the MDGs ’00 Vision & FFA ‘92 Dublin ’06 UNSGAB GOVERNANCE Hierarchical Top-down state interventions Market-led Enter the private sector Distributed Enter civil society Globalization Decentralization Emergence of developing countries in global debate PHYSICAL Population growth and urbanization Growing competition for natural resources Scarcity Worsening water quality Groundwater depletion Climate stress ODA Focus on infrastructure Bricks and mortar Focus on management PSP, cost recovery Focus on services Measuring results

4. 4 Trend: Population growth Source: UN Population Data

5. 5 Trend: Decentralization National National + Municipal Provincial National + Provincial Municipal Provincial + Municipal No Data Tier of government responsible for water supply service provision Source: Van Ginneken & Kingdom, forthcoming

6. 6 Trend : All financial flows going down Public investment in infrastructure decreasing Private investment is increasing, but not in water WSS Donor financing stable at best source: OECD-DAC, 2006 Trends in ODA in water

7. 7Outline 1.Trends in Global WSS Development 2.Results from 2006 Africa Country Status Overviews 3.Reform and Innovation 4.Getting Africa on Track to Meet the WSS MDGs

8. 8 MDG Outlook – Are we achieving the targets? On track for water DRC Available at www.wsp.org Off track for water Fragile state seriously off track AMCOW-WSP-AfDB-EUWI-UNDP Country Status Overviews (CSO) Track WSS MDGs in Africa Projected % of Coverage Target Achieved – Water Supply

9. 9 Sanitation Off Track Projected % of Coverage Target Achieved - Sanitation Supply AMCOW-WSP-AfDB-EUWI-UNDP Country Status Overviews (CSO) Track WSS MDGs in Africa Definition Problems! Only CSO country On Track! San severely neglected in Fragile States!

10. 10 Capacity Scale increase needed to reach the water MDGs AMCOW-WSP-AfDB-EUWI-UNDP Country Status Overviews (CSO) Track WSS MDGs in Africa Ave: capacity needs to be increased x 6.2 for water (x7.5 for sanitation)

11. 11 Scale of effort to get water & san on track Efforts X… MDG Outlook – Are we achieving the targets? Available at www.wsp.org Efforts X…

12. 12 Progress on MDG Roadmaps: Rural San and Rural Water Institution leadership Stakeholder consultation MDG action plan Resources mobilized Implementation on track Available at www.wsp.org Rural San Rural Water Institution leadership Stakeholder consultation MDG action plan Resources mobilized Implementation on track

13. 13 Total Investment needed as a Share of GDP % of GDP Sector Preparedness – What Will It Take? Rethink service level/ targets? Rethink allocation principles? Range of expenditure from current studies Available at www.wsp.org

14. 14 Average Sustainability Scores Over Sector MDG CSO Data: Sustainability Scorecard Overall low!

15. 15 Are institutional and financial success factors in place? Sanitation is lagging behind? RDC High coverage, v low sustainability score Strong on most indicators in CSO Available at www.wsp.org Enhancing Sector Sustainability – Making The Gains Last

16. 16Outline 1.Trends in Global WSS Development 2.Results from 2006 Africa Country Status Overviews 3.Reform and Innovation 4.Getting Africa on Track to Meet the WSS MDGs

17. 17 Africa WSS Status - Two Africas! Reform and Fragile States Reform Successes Uganda : 0.7m rural served in 05/06 – exceeding MDG targets Senegal : 20% of Dakar (0.45m) accessed san services in last 3 years Rwanda : sector $ up x4, rural water access, 20% managed by private operators Tanzania: $1bn raised in sector finance supporting national sector program Fragile States Crises Somalia : 10% have RWS access, Urb. San services collapsed DRC : 10% rural san and 12% water coverage Angola : War impact: 16% san access & 46% water Zimbabwe: Urban service collapse impacts: poverty, disease, growth, food, environment

18. 18 Country Impact: Scaling Up Rural Water Supply to Achieve MDGs in Benin  From 2002 (RWS coverage 35%) Benin developed national RWS program with: clear leadership by MMEW, clear MDG targets, strong sector coordination, donor pooled finance, annual joint sector reviews & performance monitoring.  Results: 2006 RWS 44%; exceeded target of 1350 new water points/year in 06; total RWS finance doubled between 02-06 ($14.4m - $31.7m) Evolution of RWS Program Budget against MDG target line Benin 2002-2006

19. 19 Country Impact: Scaling Up Rural Water Supply and Sanitation to Achieve MDGs in Ethiopia  Ethiopia WSS sector transformed from very low access (1990 water 19%, san 7%) and top-down, supply-driven approach to decentralized, multi-stakeholder, demand-focused approach with MDG and universal access goals, distinct programs for water & san/hyg.  Results: Water 40% & san 12%, sector finance risen dramatically from $120m in 2006. Now $629m committed from ESAs. Approx. 1.3 mill latrines Latrine coverage in Southern Nations 1994-2006

20. 20 Delegated Management from Utility to Domestic Private Sector Operators in Kisumu, Kenya #1 Concept: Water Company sells bulk water to small-scale private operator to manage sub-network serving poor. Operator connects customers, operates sub-network, collects revenue, fixes leaks and pays Company a monthly bill. Increased access to quality water Results:

21. 21 Delegated Management from Utility to Domestic Private Sector Operators in Kisumu, Kenya #2 Increased (x3 per capita) utility revenue collection Reduced connection charges & price of water

22. 22 Microfinance for Piped Water Concept: Domestic commercial banks provide loans directly to community owned piped water systems. Loan facilitated through Output-based aid subsidy, which also offsets lenders risk. Institutional Arrangements Results:  60,000 people benefit from pilot project serving 21 communities.  Leverages Private Bank-Utility-PPIAF- GPOBA- community resources  Catalyses domestic capital and local business services

23. 23Outline 1.Trends in Global WSS Development 2.Results from Africa Country Status Overviews 3.Getting Africa on Track to Meet the WSS MDGs

24. 24 Scale and Diversity of WSS MDG Challenge in Africa Population in millions 50% in 5 largest Nigeria Ethiopia RDC South Africa Tanzania 75% in 13 largest + Kenya Sudan Uganda Ghana Mozambique Madagascar Cameroon Cote d'Ivoire 90% in 22 largest + Angola Burkina Faso Zimbabwe Mali Malawi Niger Senegal Zambia Rwanda

25. 25 African Response to MDG Challenge A.Countries likely to reach the goals (e.g. RSA, Mauritius, Namibia, Botswana, Tunis) – about 13 countries B.Countries which could make significant progress with some support (e.g. Uganda, Senegal, Benin, Burkina, Kenya, Ethiopia) – about 10 countries C.Countries still struggling with key reform issues but which need selected assistance (e.g. Malawi) – about 16 countries D.Countries struggling with internal strife unable to make significant development initiatives but need emergency help (e.g Sudan, Somalia, Liberia) – about 15 countries Where to Focus? + Nigeria! B & C best for large impact D New FS Initiative Needed

26. 26 Five Point Strategy to Get Africa on Track to Meet the MDGs 1. Broaden & Deepen Sector Reform 2. Develop & Monitor WSS MDG Roadmaps 5. Focus on Sanitation 4. Increase Sector Capacity 3. Develop Financing Strategy EXTEND TO MORE COUNTRIES WATER LAWS GOVERNANCE SEPERATE POLICY,/IMPLEMENT. SECTOR COODINATION DEVELOP PPPs GIVE UTILITIES AUTONOMY INCREASE CONSUMER VOICE FRAGILE STATES FACILITY DEVELOP WSS MDG ROADMAPS ALIGN WITH NATIONAL PLANS CONSULTATION PROCESS IMPROVE SECTOR MONITORING REGULAR PROGRESS TRACKING PROGRAMMATIC APPROACH INCREASE SECTOR ALLOCATION LEVERAGE REVENUE & MARKET FINANCE UTILITY FINANCIAL REFORM PUBLIC SECTOR REFORM AGGREGATION STIMULATE PPP TRAINING WATER EDUCATION LEADERSHIP INCREASE SAN BUDGETS LARGE SCALE SAN MARKETING PPP HYGIENE PARTNERSHIPS URBAN POOR STRATEGY

27. 27 WISA WSS MDG Support Role 1.Further develop NEPAD outlook/instruments 2.Gain and share experience  But be sensitive to different problems/solutions 3.Support development of other water associations 4.Broker twinning/TA/training support between Sn African and African WSS agencies

28. 28 Main Messages  The MDGs are a big opportunity for WSS development  The Sector is facing new challenges, needs to adapt and find new solutions  Africa is the continent most off-track the WSS MDGs....but reforming countries are well placed to achieve the water goals  Sanitation is the least on track.. though a turn around in performance is achievable  Strategies to get back on track include:  deepening reform & restructuring institutions to attract capacity  developing specific WSS MDG roadmaps linked to national plans  developing specific instruments for fragile states  improving sector monitoring,  developing sector finance strategies,  giving a specific focus on sanitation and hygiene Available at www.wsp.org

29. 29 Projected Population Developing & Transition Countries (DTC) and OECD Rapid urban growth in secondary cities & towns Still many in fragile rural areas Trend 2: Urbanization

30. 30 Trend 3: Historical shift in governance Government hierarchical Society distributed Market market-led

31. 31 Trend 5: number of PSP projects going up, $$$ going down Source: WB PPI Database

32. 32 The changing face of PSP: Which operators go where? 2001-2005 # WSS PSP projects by income group 2001-2005 Low income Lower MIC China Lower MIC Source: WB PPI Database

33. 33 Aggregation: Grouping of several municipalities into a single administrative structure town A town B town C town D Ongoing in various (diverse) countries: Hungary, Philippines, Brazil Differs from recentralization  creating multiple ownership public companies lowers political capture # of water utilities in The Netherlands Source: Vewin

34. 34 Adequacy of Planned Public Investment M$/an Sanitation Water Sector Preparedness – What Will It Take? Available at www.wsp.org

35. 35 Thank You!