2005 - 2006 - Pinsent Masons Water Yearbook 2012

PART 1: 2005-2006 OVERVIEW
and finding ways of depoliticising the entire issue of cost-recovery. The latter point is crucial as it
has hampered the free water approach used by South Africa, however noble its intent.
There is reason for optimism; look at examples where progress has been made. A number of
studies in the Country Analysis of this Yearbook deserve mention. Namibia has combined
private and public sector approaches for good quality urban services in an area of water
scarcity. Senegal demonstrates a working relationship between the private sector and public
needs. Uganda has shown how utility reform can have long lasting effects. It is to be hoped that
examples like these will in time mirror the service extension case studies outlined in this
Overview.
Ultimately, a fully operating and globally competitive water and sanitation infrastructure in the
region will depend on local investment based upon cost-recovery and the ability to raise money
on the local capital markets, therefore helping to obviate foreign exchange risk issues, while
assisting in internalising the region’s wealth. At present, there is less capacity for local investors
than in Latin America and Asia, but some exists and this needs to be tied in with developing
each country’s capital markets.
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Pinsent Masons Water Yearbook 2005-2006