Sanitation surcharges collected through water bills: a way forward for financing pro-poor sanitation?

Themes: Market development Public finance Sanitation Utilities
Countries: Mozambique Zambia

Market-driven models for sanitation in low-income areas are of unquestionable importance, but there is broad consensus that the market needs to be supported by some sort of public revenue stream. One potentially pro-poor approach to revenue generation, as demonstrated in Lusaka and Ouagadougou, is to include a sanitation surcharge within water bills. This Discussion Paper is a situation review of sanitation surcharge systems in African cities, focusing on systems designed to raise revenues for improving sanitation in low-income districts.