Tanzania’s Deputy PM urges action on financial losses, water supply

Dar es Salaam. The Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, has directed the country’s water authorities to adopt robust strategies to tackle water loss and prevent financial losses that are undermining the sector’s sustainability.

The call was made on Wednesday, March 19, 2025, during the launch of the 16th Performance Report of Water Supply and Sanitation Authorities for the 2023/24 financial year.

The report highlighted that water loss for the year stood at 36.8 percent, translating to a financial loss of Sh114.12 billion. This figure surpasses the acceptable threshold of 20 percent set by the government, exacerbating the country’s challenges in meeting growing water demand.

Although there was a slight reduction in water loss from the 37.2 percent reported in the 2022/23 financial year, Dr Biteko stressed that the current level of water loss remains alarming, especially considering the financial impact it has on the sector

. He remarked that the funds lost due to uncollected water revenue could easily finance another major water project.

“The causes of this problem are not only related to infrastructure but also to theft. Water theft significantly sets us back, which means we still have a lot of work to do,” said Dr Biteko.

He pointed out the authorities with the highest water loss rates, including Rombo at 79 percent, Handeni at 69 percent, Mugango Kiabakari at 68 percent, Ifakara at 56 percent, and Kilindoni at 55 percent. In contrast, authorities such as Maganzo, Nzega, Kashwasa, Biharamulo, and Monduli performed better, with water loss rates as low as 4 to 13 percent.

Dr Biteko also highlighted the severe implications of areas where water loss rates reached up to 70 percent, noting that very little water actually reaches the citizens in those regions. He urged water authorities to thoroughly investigate the causes and implement effective solutions.

The Deputy Prime Minister also pointed out the financial strain caused by high water loss rates.

“If you invest in water production but lose 70 percent of it, the revenue collected does not match the expenditure. This results in complaints that operational costs exceed income,” he explained.

Dr Biteko called for stronger strategic plans and collaboration among all stakeholders in the water sector, emphasising that the government alone cannot solve these challenges and that private sector involvement is crucial. 

He further urged water authorities to invest in improving water production and infrastructure, as current production meets only 45 percent of the demand.

Despite an increase in water production to 685 million litres in the 2023/24 financial year, up from 593 million litres in the previous year, the supply still falls short of demand in the serviced areas. 

Dr Biteko noted that the production-to-demand ratio has decreased from 47 percent in 2022/23 and 48 percent in 2021/22, highlighting that increased production has not kept pace with rising demand.

The report also revealed a decrease in the ratio of water production to operational capacity, which dropped to 53 percent in 2023/24 from 56 percent in 2022/23, indicating underutilisation of existing infrastructure.

In addition to the water supply issues, Dr Biteko stressed the importance of improving sanitation infrastructure. The report shows that only 11 water authorities have a proper wastewater treatment network. He called for prioritising sanitation alongside water supply to ensure a clean and sustainable environment.

“This issue is cross-cutting and must remain a priority in the water sector. The ministry has prepared a guideline for managing water supply and sanitation services, which provides technical directions for improving environmental hygiene and water availability. Authorities should read and implement it,” Dr Biteko said.

Director General of the Energy and Water Utilities Regulatory Authority (Ewura), Dr James Mwainyekule, acknowledged improvements in efficiency within some water authorities but recognised the persistent challenges.

He noted that many authorities still rely heavily on government financial support and that Ewura, in collaboration with the ministry, has been offering training to explore alternative investment methods, such as issuing municipal bonds similar to those used in Tanga.

Another issue highlighted was that some water authorities charge tariffs that do not reflect the actual cost of service provision. Ewura has been advising these authorities to submit requests for tariff adjustments, following the legal and regulatory procedures.

Elderly infrastructure remains a major contributor to water loss. To address this, Ewura has introduced strategies to enhance maintenance efforts and ensure that produced water reaches consumers effectively.

Chairman of the Ewura Board Prof Mark Mwandosya, underlined that water services impact multiple sectors, including public health. 

He highlighted that improved water supply could significantly reduce the incidence of waterborne diseases. 

He also noted that, according to a National Bureau of Statistics (NBS) report, more than 70 percent of educational institutions now have access to water, which has led to better educational outcomes as students spend more time in school.

As Tanzania faces the dual challenge of increasing water demand and inefficiencies in the sector, the government and stakeholders are now tasked with implementing comprehensive solutions to reduce water loss and improve water supply services across the country.