Assessment of performance of public water utilities in Malawi: a case of Blasntyre, Lilongwe and the Northern Region Water Boards

In Malawi, performance for the water sector has over the past eight years not been very impressive considering the level of unsettled debts, growth stagnation, non payment of dividends’ to government and low level of new investiments (MoSC, 2006). The water utilities have been exhibiting poor financial performance through huge financial losses incurred. This study was aimed at assessing the financial performance of Water Boards with emphasis on operation efficiency, cost recovery, commercial performance, asset maintenance, current and quick ratios among other indoicators. The tools that were engaged in this study included consultative meetings and interviews with utilities top Management, literature and documentary review. The study establish that the Water Boards were characterized by overstaffing with a range of 16 to 23 staff( labour)/1000 connection, little mechanization and lack of Technology, high levels of UFW ranging from 28% to 55%, low revenue collection efficiency and revenue owed by bad debtors, huge debts, loss of exchange and foreign currency risk and high inflation rates in the range of 7 to 18% (BWB Annual Report, 2007 and NRWB Annual Report, 2006 it was therefore concluded that overstaffing, high levels of UFW, huge debts and revenue in arrears owed by bad debtors has a negative impact on the financial sustainability. In this regard, it was recommended that a reconciliatory mechanism be devised to ensure timely collection of revenue and that fixed contracts with lending institutions be negotiated for the loans to avert exchange loss thereby maintaining uniform interests as water is both a social good as well as an economic good.