NEWS

How good governance is driving a Ugandan water utility’s turnaround

Themes: Advisory
Countries: Uganda

In the often-overlooked mechanics of global development, the subtle shift from management to robust governance is proving to be a potent catalyst for business excellence. For the Mid-Western Umbrella of Water and Sanitation (MWUWS), a Ugandan water utility, a concerted effort to formalise and train its Board of Directors (BOD) has set the stage for ambitious growth, aiming to double its monthly billing compared to FY23/24 baseline by year’s end.

MWUWS, a company limited by guarantee, took a significant step in 2024 by formalising its seven-member board. Crucially, the structure ensures community buy-in and government expertise, comprising three members drawn from the local community and four established government officers. Each director serves a three-year term, renewable once. This blend is central to ensuring both responsiveness to customers and compliance with regulatory frameworks.

The key to unlocking the board’s potential, however, has been targeted capacity building. With support from WSUP Advisory and funding from the Conrad N. Hilton Foundation, the directors have undergone intensive training. The programme focused not just on their legal rights and duties, but on what has been dubbed ‘good Board governance’: fostering effective internal collaboration, managing crucial stakeholder relationships, and actively contributing to organisational oversight and strategy.

Since the training began, MWUWS has transitioned from ad-hoc meetings to a structured governance calendar, scheduling quarterly meetings to oversee core functions including risk management, compliance, succession planning, and stakeholder communication.

The partnership with WSUP Advisory has supported the MWUWS board through nine scheduled meetings, transforming the utility’s operational framework. Over the past two years, the board has approved a suite of essential policies developed by the Senior Management Team (SMT), creating the necessary backbone for efficient business practice. These include a Financial Policy and Procedures Manual, a Human Resources Policy, and critical operational policies such as a Debt Management Policy, a Metering Policy, and a Customer Service Charter, alongside a commitment to an Equitable Services Policy.

This enhanced oversight is already yielding strategic returns. The senior management recently conducted a midterm review of the utility’s 2023-2028 Strategic Plan. The evaluation acknowledged market and contextual changes, leading to recommendations for adjustments to address mounting challenges, particularly the growth in customer arrears and the persistent issue of Non-Revenue Water.

At the ninth board meeting, held in Kyenjojo on 7th November 2025, the impact of improved governance was clear. The board successfully approved the external auditors’ report for the Financial Year 2024/2025, a critical governance milestone achieved well within the mandated 90-day period.

A significant shift that has improved efficiency is the establishment of two sub-committees: Finance and Audit, and Governance and Operations. These committees now digest the intricate details of board papers, reducing the main board meeting duration to under three hours. The SMT, in turn, has matured its capacity for preparing concise papers and improvement recommendations.

Crucially, the strengthened governance has fostered accountability. It was noted with encouragement that all actions mandated from previous board meetings had been completed, and the high quorum and in-person attendance rates at all eight meetings underscore the directors’ commitment.

The ultimate measure of this governance overhaul lies in the balance sheet. MWUWS has set an ambitious target to significantly boost its financial stability, aiming to achieve a monthly billing of at least UGX 600 million by the end of the year, a sharp climb from the baseline of approximately UGX 300 million per month recorded in FY 2023/24.

For global development practitioners, the MWUWS case offers a powerful lesson: utility reform is not just about pipes and pumps, but about solid, ethical, and effective governance that serves as the silent, yet essential, engine for sustainable business growth and public service delivery.