Conditions for private sector involvement and financing in rural water supply

340 million people living in rural areas across sub-Sahara Africa still lack access to basic drinking water services. In order to achieve universal and equitable access to safe and affordable drinking water for all by 2030, it is essential to explore new water service delivery models and means of funding these. The UDUMA model put forward by the Odial Solutions Group demonstrates that private sector actors, under certain conditions, can lead the development and financing of such new sustainable rural water supply initiatives. UDUMA introduces an alternative operation and maintenance (O&M) model for small piped networks and manual pumps in rural and semi-urban areas. An innovative revenue collection system and the large scale at which projects are developed guarantee a steady cash flow and reduce risks. The use of new technologies contributes to operational efficiency. The users benefit from an improved and sustainable access to clean drinking water, with elevated service standards, affordable for even the poorest households. Based on long-term affermage contracts with local authorities, the financial and social returns on investment make it possible to attract alternative public and private funds for modernising and expanding rural drinking water infrastructure. There are however a number of pre-conditions to be able to call upon such blended finance solutions. [author abstract]