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WSP Africa Regional Thematic Work on WSS in PRSPs and Sector Finance in sub-Saharan Africa


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Title: WSP Africa Regional Thematic Work on WSS in PRSPs and Sector Finance in sub-Saharan Africa

WSP Africa Regional Thematic Work on WSS in
PRSPs and Sector Finance in sub-Saharan Africa
  • Meera Mehta
  • Kampala, Uganda, February 2004

Water and Sanitation Program Africa An
international partnership for improving sector
policies, practices and capacities to serve poor
  • Nine focus countries
  • Ethiopia, Kenya, Mozambique and Uganda (East and
    Southern Africa)
  • Benin, Burkina Faso, Mauritania and Senegal (West
  • Yemen
  • Five regional thematic support groups
  • FINANCE and PRSPs, Reform and communications,
    Rural, Sanitation and Urban poor

Regional Theme PRSP and Sector Finance
  • Addressing the issues of WSS in poverty reduction
    strategies and sector financing for improved
    water and sanitation services
  • Two main activities
  • Incorporating Water Supply and Sanitation into
    PRSPs in Africa
  • Assessing Sector Finance Water Supply and
    Sanitation Resource Flows


Steps in the Africa WSS/PRSP Analysis
  • Desk review of the emerging experience in 10
    countries (Jan 2002)
  • WSP-ODI-WaterAid learning partnership ongoing
  • Stakeholder workshop, 100 participants (June
  • Benchmarking review of 12 countries (Oct 2003
    presented today!)
  • Benchmarking review with participatory
    stakeholder engagement - planned 

Benchmarking Review Results in 12 African
  • Countries Benin, Burkina, Ethiopia, Kenya,
    Malawi, Mauritania, Mozambique, Rwanda, Senegal,
    Tanzania, Uganda, Zambia
  • Five Criteria for Incorporation of WSS into
  • Was WSS adequately considered in poverty
  • Are WSS sector reforms recognized in PRSP?
  • Does PRSP take account of sector financing
  • Monitoring and evaluation process in place for
  • Consultation process undertaken (not included in
    study because of lack of information in

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Water and Sanitation in PRSPs Key Findings
  • What is the degree of WSS coverage in SSA?
  • Low incorporation
  • Considerable variation
  • Improvement from interim PRSP to full PRSP
  • Two countries Uganda and Mauritania are
    emerging as leaders
  • How can WSS coverage and incorporation into PRSPs
    be improved?
  • Improved information and ME systems
  • Sector program and financing
  • Advocacy and incentive

Three critical areas for action to improve
WSS/PRSP incorporation
Poverty Diagnostics Sector Information ME Systems

Stage 2 Sustaining/ Improving WSS in PRSPs
Stage 1 Initial WSS Incorporation in PRSPs
Sector Program and Financing
Advocacy and Incentives
Water and Sanitation in PRSPs Further work
  • Advocacy plan regional, country
  • Making the case for Water and Sanitation in
    poverty reduction strategies
  • Next round of benchmarking of WSS in PRSPs,
    through a more participatory approach

Water and Sanitation Sector Finance Key
  • Developing a framework for assessing resource
    flows in the WSS sector and applications in
  • Regional comparative analysis of sector finance
  • Other regional studies WSS in Social funds, and
    WSS Small providers and Microfinance

Why Resource Flows Assessments?
  • Inadequate understanding of WSS sector finance -
    one of the key reasons identified for lack of WSS
    incorporation into PRSPs in SSA
  • Diverse sources and channels with equal
    importance of public and private/community
    resources, and by national and local governments
  • Exploring the potential to use financing to
    provide incentives for reforms and improved
  • Finance is perceived as a constraint need to
    assess gaps and explore leveraging

Resource Flows Studies
  • Phase 1
  • Exploratory studies in Kenya, South Africa and
  • Countrywide assessments using institutional and
    financial mapping
  • Phase 2
  • Country level
  • Further studies in Uganda, Zambia, Yemen
  • Uganda application of approach to sanitation
  • Kenya contribution of findings and approach to
    assist Government of Kenya for WSS sector
    financial and investment planning

Approach- Financial Mapping
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National Budget Framework for Sanitation
Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Source of funding Planned outputs Planned outputs Planned outputs
Activities MoH DWD NWSC MoES MoG MoLG NGOs Donor Priv. sector Comm-unity Total Narrative No. Unit cost
Rural household sanitation
Construction of latrines 200 100 50 10 30 10 400 Households with latrines 4000 0.10
Hygiene promotion 600 400 200 200 100 1500 Households with good hygiene 150000 0.01
Urban household sanitation
New sewer connections
Sewer maintenance
Hygiene promotion
Schools sanitation
Construction of latrines - new schools
Construction of latrines - old schools
Hygiene promotion
Total budget
Note This is for illustration purposes only
it is simplified and figures are fictitious
Emerging Directions Uganda Sanitation
  • Development of an overall budget framework linked
    to sanitation objectives and targets inquiries
    at national and district levels
  • Better management of budgets and resource use at
    local government levels
  • Exploring innovative ways of increasing
    off-budget finance (NGOs, households,
    community, small private, etc.)

Selected Findings
  • Sector Governance
  • Governance issues critical, often necessitate
    sector institutional reforms and influence
    financing opportunities
  • All three countries have adopted reforms and are
    at varying stages of implementation
  • Design of Transition Process is critical and
    need to assess its financial implications in all
    the three countries
  • Transfer of existing public schemes after
  • Transfer of staff, fiscal decentralization and
    local capacity building
  • Setting up new institutions governance
  • Setting up new financing mechanisms e.g. water
    services trust fund in Kenya

Selected Findings
  • WSS Finance
  • Inadequacy of funding generally highlighted by
  • Based on studies
  • Some comparisons possible of what is being spent
  • But.
  • Little rigorous analysis of what is really
  • Need to develop tools for strategic financial and
    investment planning
  • In relation to - allocation across sub-sectors
    and cost sharing rules, financing rules,
    technology choices

WSS expenditure as share of public expenditure
WSS public spending appears low But inadequate
assessment of the required level of spending
WSS expenditure as share of GDP
  • Comparing expenditure as a of GDP - health
    versus WSS
  • Are we crowding out non-public resources?
  • Source Sub-Saharan Africa World Development
    Report, 2003. Other countries WSP-AF ongoing

South Africa
Sub Saharan Africa
Use of Non-public Resources
  • Kenya and Ethiopia
  • Significant prevalence of non-budgetary and
    non-public resources
  • User charges (39)
  • Donors through NGOs (20 )
  • Need to explore NGO coordination
  • Efficiency and effectiveness are difficult to
    measure at national level without special studies
    as routine monitoring information is weak /

Why regional resource flows comparisons?
  • At country level
  • to enable comparison with other countries, and
    with regional benchmarks
  • Civil society advocates and parliamentarians to
    make governments accountable for resource
    allocations and utilization
  • Donors to adjust their priorities and assistance
  • All stakeholders to gain access to good practices
    and innovative ideas
  • At regional level to explore
  • Feed into NEPAD and AMCOW process
  • Regional donor groups, African Water Facility
  • Donors

Sector Finance Further Work
  • Expand the scope of benchmarking (PRSP) to
    incorporate country level WSS financial
  • Develop indicators, benchmarks and performance
    assessment in a participatory manner with
    stakeholder engagement
  • Refine institutional and financial mapping to
    expand into strategic models for country level
    financial and investment planning (Kenya, Uganda