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Researchers Trained on New Methodologies of Improving Customer Water bill Payment Behaviour

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By Jane Anyango

Over 40 Makerere University researchers from the School of Economics were on 14th October, 2021 trained on new methodologies of information treatment into improving Water bills payments in Uganda and other countries.

The training held virtually and physically was organized and hosted by the Environment for Development Imitative (EfD-Mak) Centre.

The seminar was facilitated by Dr. David Fuente from the School of Earth, Ocean and Environment, University of South Carolina USA.

Dr. David Fuente delivering his presentation online.
Dr. David Fuente delivering his presentation online.

Dr. Fuente presented a number of studies conducted in different countries including Kenya and Ethiopia under the theme, “Testing information treatments to improve the Financial   sustainability of water utilities”. The studies according to Dr. Fuente are premised on the Global water sanitation and infrastructure challenge and the Sustainable Development Goal on provision of safe and affordable water sanitation for all by 2030.

He said policy makers face the challenge of raising water prices and improving customer bill payment behaviour noting that both are politically difficult.

“Water infrastructure is capital intensive, but largely out of public view. Improving customer awareness of the capital intensity of water supply and sanitation service delivery may increase customer perception of, “fair” water prices, however, mode of information treatment likely matters and further research is needed”, the facilitator said.

Some of the Lecturers that attended the training.
Some of the Lecturers that attended the training.

Dr. David Fuente explained that customer arrears are a chronic problem in the water and sanitation sector in the global South which undermines utilities financial stability.

“Arrears undermine tilities financial stability. For example, in South Africa, households owed municipal governments 40 billion Rand (about 4 billion USD). In Kampala Uganda, 57% of residential customers accounts have arrears while in Nairobi Kenya, 60% of customers have arrears”, he cited.

Despite the challenge, Dr. Fuente observed that, very limited work on why customers do not pay their bills and common assumptions may be wrong and lead to substantial policy mistakes.

A section of participants that attended the seminar.
A section of participants that attended the seminar.

“Simple, low-cost information treatments may improve customer behavior, but evidence is needed and are likely to be panacea.Policy makers need to think carefully about deploying multiple, well targeted policy instruments to improve customer payment behavior”, he stated.

Dr. Fuente provided insights from a series of literature and studies from Kenya, Ethiopia and South Africa that examined customer perceptions of, “fair” water prices and information treatments to improve customer bill payment behaviour.

The studies sought to address whether information treatments can improve customer bill payments and which treatments are more effective at improving customer bill payment. The general information treatment interventions discussed to improve bill payment included hard threats of disconnection for non-payment, soft encouragement that informs tenants, simple payment reminders and routine billing information, use of subsidies, sanctions, moral suasion.

Another section of participants that attended the training.
Another section of participants that attended the training.

The goals of these studies were to reduce arrears and bill-nonpayment to improve the financial stability of utilities; Boost the agency’s financial position to cater for its investments and to increase the social welfare from the agency’s investments.

In Uganda Dr. Fuente said there is proposal that is competing for Sida funds titled, “Using information treatments to improve water bill payments under the National Water and Sewerage Corporation”.

The Director EfD-Mak Centre Prof. Edward Bbaale said, such a study is practical and primary on how to create a shock in the perceptions of people so that they can start responding to paying their bills.

Prof. Edward Bbaale (standing) delivers the welcome remarks.
Prof. Edward Bbaale (standing) delivers the welcome remarks.

Prof. Bbaale said this training was important not only to the country and researchers, based on reason that these are new techniques of analysis that researchers at the EfD-Mak centre needed to pick up and get interested to undertake similar studies.

The Director expressed the need for water agencies to have financial stability to give a good service noting that what is being proposed is to make sure that financial stability of water agencies is improved.

Prof. Bbaale shared that water supply is capital intensive and requires a lot of money to lay pipes and maintain the treatment plants and yet customers comparatively pay less.  He said, to supply clean water, expand the reach and maintain constant water supply, water supply agencies require substantial resources.

A section of male participants listens to the proceedings during the traiA section of male participants listens to proceedings during the training. ning.
A section of male participants listens to proceedings during the training.

He noted that the National Water and Sewerage Corporation of Uganda is constrained by resources to maintain their supply and pipes and at the same time lack enough resources to reach the unserved areas.

“There is no study yet in Uganda that is trying to utilize the methodologies learnt into analyzing how to improve water bill payments in Uganda despite the common knowledge that many customers have payment arrears.

I am hopeful that the proposed study in Uganda will win the Sida grant and will go a long way in informing NWSC and government on how to improve water bill payments. And, if this study is implemented, it will be a great opportunity for us to see what findings come forth and what recommendations are put forward for government to improve water bill payment”. Prof. Bbaale stated.

Prof. Edward Bbaale appreciated that water supply agencies require substantial resources to fulfill their mandate.
Prof. Edward Bbaale appreciated that water supply agencies require substantial resources to fulfill their mandate.

Participants speak on the training

Dr. Oryem John Bosco, a Lecturer in the School of Economics described the training as a good collaboration and chance for researchers to understand what is going on with other researchers.

 “And in this case, understanding what research is going on in terms of utility payments and challenges that communities face in paying water bills is a good study which links with the SDGs and the national development goals.

 So understanding why payments delay and what can make people pay their water bills is a very good innovation. From this training and the proposed Uganda study, the facilitator is intending to craft messages to the water consumers to ensure that public utilities get the desired revenue that can make them operate without too much financial constraints”, Dr. Oryem commended.

Mr. Peter Babyenda the Policy Engagement Specialist in charge of coordinating the Inclusive Green Economy (IGE) training program who is also a PhD student thanked EfD-Mak center for organizing the wonderful training.

“The presentation is new to us, and it touches on of the key issue-water, where we have so many problems. I heard there is a proposal for Uganda which I am so interested in and can’t wait to see how this study goes. I am interested in the findings and to learn more on the methodologies”, Mr. Babyenda stated.

Jane Anyango is the Principal Communication Officer, College of Agricultural and Environmental Sciences (CAES)

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Business & Management

From risk to resilience: Increasing insurance uptake among farmers in rural Uganda

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Dr. Aisha Nanyiti presenting about the project. EfD-Uganda Fellows Co-creation workshop with representatives from Government, CSO and the private sector to generate a context-relevant Micro, Small and Medium Enterprise (MSMEs)-led model for supporting the transition to low-carbon ag-tech by smallholder farmers, 25th April 2024, Makerere University, Kampala Uganda, East Africa.

By Dr. Aisha Nanyiti

Poor households in low-income countries face numerous risks, from extreme weather events to illness and crop failure. With limited savings and assets, even small shocks can have devastating consequences on welfare. While formal insurance products can potentially help mitigate these risks, their uptake remains remarkably low among rural smallholder farmers, who instead primarily rely on informal risk-sharing networks. This pattern persists despite evidence suggesting that informal insurance mechanisms provide incomplete coverage against shocks. These shocks translate into shortfalls in income and consumption (Karlan et al. 2014, Morduch 1999).

Studying the impact of insurance on farmers’ economic behaviour

In Nanyiti and Pamuk (2025), we focus on smallholder farmers in rural Uganda and examine how different insurance arrangements affect their economic behaviour and decision-making. Uganda provides an ideal setting to explore these questions, as only 1% of adults have formal insurance coverage, despite 67% of households depending on agriculture for their livelihoods. By comparing behaviour under formal insurance (provided by registered companies) versus informal insurance (peer-to-peer transfers), we gain insights into why formal insurance uptake remains low and how farmers respond to different risk management options.

Using a real effort task experiment, we investigate whether the incentives created by these different insurance arrangements influence productivity and risk management decisions. Our findings reveal important behavioural responses that help explain observed patterns in insurance uptake and suggest potential approaches for improving the design and adoption of formal insurance products. We find that farmers exerted less effort under informal insurance but not under formal insurance coverage, and increased their level of formal insurance coverage after experiencing a bad outcome.

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Dr. Aisha Nanyiti is a Lecturer at the School of Economics, College of Business and Management Sciences, Makerere University

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Prof. Bbaale participates in Partnership for Action on Green Economy (PAGE) Academy in Rabat, Morocco

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Prof. Edward Bbaale (2nd Right) contributed during a panel discussion at the PAGE Academy. The Principal, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala Uganda, East Africa, Prof. Edward Bbaale participates in the Partnership for Action on Green Economy (PAGE) Academy in Rabat, Morocco, from 21 to 23 May 2025.

By CoBAMS Communications Office

The Principal, College of Business and Management Sciences (CoBAMS), Prof. Edward Bbaale participated in the Partnership for Action on Green Economy (PAGE) Academy in Rabat, Morocco, from 21 to 23 May 2025. The Academy, themed “Financing a Just Transition to Green and Circular Economies,” convened representatives from PAGE countries across the region.

It was designed to enhance knowledge and promote innovative, inclusive mechanisms for financing and implementing green and just transitions in Africa. The event provided a vital platform for peer learning and knowledge exchange, drawing on best practices and African case studies.

Prof. Bbaale participated in Master Class 3, which explored strategies and partnerships for scaling up training in green and inclusive finance. The session highlighted regional policy trends, rising demand for relevant skills, and importance of collaboration among governments and financial institutions.

Prof. Bbaale contributed to discussions on two critical issues:

  • How economics departments are adapting curricula to respond to the evolving field of green and, inclusive finance and,
  • The role of academic research in shaping green financing instruments and supporting reform efforts.

The Principal shared how Makerere University has taken a proactive, multidimensional approach to embedding green and inclusive finance into its economics curriculum. This includes a strong emphasis on technical modelling skills, policy relevance, and cross-disciplinary learning. He highlighted that Makerere is emerging as a regional leader in climate-informed economics education, positioning itself to contribute meaningfully to Africa’s green transition.

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AERC and Mak School of Economics discuss shaping Africa’s future in research and development

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Prof. Victor Murinde and Associate Prof. Ibrahim Mike Okumu with staff and students from CoBAMS and other stakeholders after the meeting. Delegation from the African Economic Research Consortium (AERC) strengthening partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation, College of Business and Management Sciences (CoBAMS), 23rd May 2025, Makerere University, Kampala Uganda.

On Friday 23rd May 2025, a delegation from the African Economic Research Consortium (AERC) visited Makerere University to strengthen partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation.

The Engagement meeting focusing on shaping Africa’s future in research and development brought on board academic and administrative staff from the School of Economics under the College of Business and Management Sciences (CoBAMS) and the AERC delegation comprising: Prof. Victor Murinde-Executive Director, Dr. Charles Owino-Manager of Strategic Partnerships and Resource Mobilisation, Ms Anna Owino-Personal Assistant to the Director and Ms Veronica Nanyanzi from State House-Uganda.

Underscoring the importance of the engagement meeting, Prof. Murinde said, “Following the keen observation of the recent global economic shifts and geopolitical uncertainty, the AERC seeks strategic partnerships with African governments and institutions to chart the roadmap through research and co-production of evidence-based economic solutions.”

Following the theme, Understanding the future of research and training collaboration with AERC, Prof. Murinde explained that the interaction also presents an opportunity to discuss the AERC Strategic Plan (2025-2035) titled, “Re-inventing the AERC for Delivering Africa’s Economic Prosperity, in which AERC is embarking on a comprehensive reform agenda, designed to strengthen research excellence, enhance policy impact and secure long-term institutional sustainability.

Prof. Victor Murinde, Executive Director of AERC (Left) and Prof. Ibrahim Mike Okumu, Dean, School of Economics (Right). Delegation from the African Economic Research Consortium (AERC) strengthening partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation, College of Business and Management Sciences (CoBAMS), 23rd May 2025, Makerere University, Kampala Uganda.
Prof. Victor Murinde, Executive Director of AERC (Left) and Prof. Ibrahim Mike Okumu, Dean, School of Economics (Right).

Concerned about the visibility and recognition of African researchers, Prof. Murinde reported that AERC will ensure that they are acknowledged with their names included in the publications. On the issue of network membership, EARC is considering the following categories: The distinguished service award, AERC Fellows, AERC Associates, and AERC Affiliates.

  • Distinguished service award-Presented to those individuals who started the work in 1988
  • AERC Fellows-Researchers who are active in research and capacity building
  • AERC Associates-For Mid-Career researchers
  • AERC Affiliates-For Masters’ and PhD students

The AERC was established in 1988, when a group of African scholars and Africanists voiced concern over the disconnect between economic research and policy formulation in Africa. According to the Executive Director, the founders of AERC observed that much of the existing economic research was either inapplicable to Africa’s economic challenges or inadequately utilized in local policymaking. Consequently, the group conceptualized a framework for fostering high-quality economic research tailored to Africa’s specific needs.

The collaboration between the AERC and Makerere University through its School of Economics started in 1988, and has led to impactful economic research in Africa, notable publications, increase in the number of faculty with PhDs at the School of Economics as well as mentorship.

Acknowledging Makerere University School of Economics as a key stakeholder in AERC, Prof.  Murinde said, “Without your participation over the last 37 years, AERC would not be here.”

Some of the staff participating in the engagement meeting. Delegation from the African Economic Research Consortium (AERC) strengthening partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation, College of Business and Management Sciences (CoBAMS), 23rd May 2025, Makerere University, Kampala Uganda.
Some of the staff participating in the engagement meeting.

The Executive Director described AERC as a network of members and universities focused on providing evidence based research for policy making in Africa. Stating the key achievements, Prof. Murinde said, “A framework has been put in place to conduct research and collaboration, with AERC providing a network to work with economists across Africa. He added that the AERC has linked up the various Deans in the Member Universities in Africa both in research and the common programmes that they conduct.

Reflecting on the AERC’s journey, he noted that in 1988, the School of Economics could mention one or two members of faculty with PhDs. Over the years, with AERC’s support to research and capacity building, the School of Economics has built a critical mass of faculty with PhDs. He highlighted that some Ugandan economists have worked with the EARC Secretariat and the EARC Board. He pointed out that the most active Ugandan economists in the AERC network are based at the following entities: Makerere University (School of Economics, College of Business and Management Sciences), Bank of Uganda, Economic Policy Research Centre (the think tank), Ministry of Finance, Planning and Economic Development, National Planning Authority, Ministry of Trade, Industry and Cooperatives, and Uganda Development Bank.

In his remarks, the Dean of the School of Economics, Associate Prof. Ibrahim Mike Okumu credited AERC for its continued collaboration, which has significantly contributed to the growth of the School. He appreciated EARC for supporting research, scholarships provided to Masters’ and PhD fellows, support for ICT infrastructure development, and contribution towards the construction of the School of Economics building.

Stressing AERC’s contribution to research at the School of Economics, Prof. Okumu said, “AERC provided opportunities to ‘fresh’ fellows to write proposals. AERC would focus on building the idea. AERC has nurtured most of us into professional researchers/scholars.”

Engagement meeting in session. Delegation from the African Economic Research Consortium (AERC) strengthening partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation, College of Business and Management Sciences (CoBAMS), 23rd May 2025, Makerere University, Kampala Uganda.
Engagement meeting in session.

The Dean disclosed that in addition to research, some of the personalities nurtured by AERC took on academic leadership positions and have significantly contributed to the growth of the College/School. Some of the personalities include: Prof. John Ddumba-Ssentamu-former Principal and Vice Chancellor of Makerere University, Prof. Eria Hisali-former Principal of the College, Prof. Bruno Yawe-former Deputy Principal, Prof. Edward Bbaale-Principal of the College, Dr. Sarah Ssewanyana-Executive Director, Economic Research Policy Centre, and among others.

Presentation of the AERC strategic plan (2025-2035)

The remarks set the pace for the gist of the engagement meeting, which focused on presentation of the areas of transformation and the new research programmes respectively.

In the presentation, Prof. Murinde explained that AERC was reconfiguring its strategic direction in 2025-2035, to concentrate on the key strategic reform options organized around eight (8) core areas. They include: Research Offerings, Graduate Training, Policy Engagement for research impact, The Consortium structure and governance, Entrenching network membership, Enhanced resource mobilization for financial sustainability, Geographical inclusion, and Possible risks to the planned reforms and how to mitigate them.

Regarding the policy engagement for research impact, Prof. Murinde noted that the ground had shifted with policy makers advocating for the need to embed research into their operations. He reported that the governance structure was going to change to a more inclusive and participatory approach bringing on board stakeholders in research and capacity building.

Prof. Murinde highlighted that the new strategic plan would focus on the following new research programmes:

  • Security, Governance and Economic Fragility in Africa
  • Industrial Policy and Growth Strategies in Africa
  • Unlocking Africa’s Digital Potential for Economic Prosperity
  • Africa in a Changing World: Jobs through Trade and AfCTA
  • Informal Cross Border Trade (ICBT) in Africa: measurement and welfare of women, youth and their families
  • Human Capital, Labour Markets and Migration
  • Climate Change: Food Systems, Climate Finance, Climate Risk and Resilience
  • Africa’s Trade and Investment Strategy on China
  • Macroeconomic Modelling, Management and Policy Reform

Input into the AERC Strategic Plan

The participants observed that the proposed linkage between policy makers and the private sector as well as the approach of co-designing research with policy makers, would contribute significantly to research uptake.

L-R: Ogwal Denis, Proscovia Taaka and Diphus Tugume, Graduate Students participating in the Engagement meeting. Delegation from the African Economic Research Consortium (AERC) strengthening partnership with the School of Economics through re-engineering economic research, capacity building, policy formulation and collaboration to impact Africa’s development and transformation, College of Business and Management Sciences (CoBAMS), 23rd May 2025, Makerere University, Kampala Uganda.
L-R: Ogwal Denis, Proscovia Taaka and Diphus Tugume, Graduate Students participating in the Engagement meeting.

Discussing the new research programmes, the participants suggested that AERC incorporates the following aspects: Integration of Natural resources management into economic modelling; Environmental Management; Interlinkages of Youth unemployment and the Green economy; Value Chains and Emerging threats such as fake products; Urbanisation; Youth and Substance Abuse; Health economics; the Informal Sector; and Agricultural Production.

Voices of the Graduate Students

Contributing to the discussion, the graduate students namely Proscovia Taaka, Diphus Tugume and Denis Ogwal urged AERC to continue supporting the collaborative Masters programme (CMAP) in Economics.

Way forward

Prof. Murinde thanked the participants for the valuable contributions that will definitely enrich the AERC strategic plan. He indicated that some of the proposed themes/ideas, would be considered as work streams within the different research programmes. The future is centered on PhD students at Makerere University and other member Universities formulating research questions in line with the new research programmes. AERC is working on a database of researchers in Africa to facilitate speed-dating in research. AERC plans a twinning programme for African universities, which will enhance joint supervision for PhD students. He pointed out that on completion of the PhD, there will be an opportunity for a post-doc Fellowship. He emphasized that researchers who win “big” projects will be encouraged to have work streams. He revealed a plan for each School of Economics in Africa to access publications across the entire membership.

Ritah Namisango
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