By Atilla Cermikli – Art in Tanzania internship
According to a 2018 report, nearly half of the population in East Africa lacked access to drinking water, with Tanzania having the lowest average rate at 49.2%.
The main problem is investment. Installing the pipe to transport water requires significant investments, and since it does not seem profitable to investors, governments step in to fund the project by issuing bonds. Nevertheless, most countries in Africa could not find enough financing. For instance, a 2014 report indicates that Tanzania has less than 50% of the funds needed to meet the Millennium Development Goals (MDGs) requirements, but has a high level of investment capacity, making Tanzania one of the most suitable countries in Africa.
The latest Glaas report shows that Tanzania is located in the most aid-dependent region and received $ 316 million in financial aid in 2017, ranking 3rd in Sub-Saharan Africa. Additionally, Tanzania has prepared its economic plans, which are consistently used in the decision-making process. Furthermore, the country has the data for decision-making, such as resource allocation, sector reviews, and/or planning processes, as well as national standard or regulation development, and targeting surveillance activities in both water sanitation and drinking water areas.
To reach the national goal, Tanzania requires an annual budget of 237 million USD, and the government finances 154.2 million USD, indicating that Tanzania needs to increase its funding by approximately 35%. Financing of investments for drinking water, sanitation, and hygiene (WASH) is met between 50% and 75%. Tanzania is also pursuing regulations and standards to attract investors, including on-site sanitation and drinking water standards, which are audited by governmental bodies and independent observers. Although a sufficient budget is indicated in the plan, the government could only bear the implementation expenses between 50% and 75% due to a lack of foreign and domestic private investments.
Another problem is in the human resources sector. Due to the lack of education in maintenance, design, and construction, Tanzania has only 50%-75% of the required human resources.
Related to the water sector development plan for 2018, the approved budget is $ 319.5 million USD, with 42% of the shares funded by foreigners and 58% by local funders.
As explained by the numerical data above, Tanzania needs to foster investments in all areas of the water supply and sanitation, including maintenance, protection of water resources, management, and development.
The type of investment might be diversified. For instance, between 2018 and 2020, a project led by the Water and Development Alliance (WADA) and its key partners aimed to provide safe water access through solar power systems.
To sum up, Tanzania has been receiving increasing attention over the years, but the country still struggles with attracting investments and developing its educated human resources. The government appears to be the only investor, but it is insufficient to cover all the expenses. Although Tanzania has published guidelines in WASH investment plans, a lack of profitability has not attracted private investments. USAID defines the reason, and while the legal framework is well-defined, implementation is not effective at all. Additionally, investment should be focused on both sanitation and water supply; however, research indicates a bias in favour of water supply. Therefore, it is essential to invest in water sanitation, as it has significant added value potential. Performance-based investment plans would run to expand sanitation services. Another reason could be collaboration intention of public agencies with private sector investments. The government enjoys the private sector’s contemporary technologies and provides technology transfer. Due to the lack of integration between water sanitation, healthcare, nutrition, and food security investments, these efforts were not entirely practical. For example, water sanitation improves food security, which helps to achieve Tanzania’s Development Vision 2025.
