Business & Management
Researchers Trained on New Methodologies of Improving Customer Water bill Payment Behaviour
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. 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.
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.
“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.
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. 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.
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.
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)
Business & Management
Public Investment Management Centre Concludes 4th Cohort Training on Financial Implications Guidelines
The Public Investment Management Centre of Excellence (PIMCoE), hosted by the College of Business and Management Sciences at Makerere University, successfully concluded the training of its 4th cohort of public officers on November 15, 2024. This capacity-building program focused on the User Acceptance Training on Guidelines for Clearance of Financial Implications, a critical process mandated by Section 76 of the Public Finance Management Act (PFMA), 2015.
Under the PFMA, every bill presented to Parliament must include a Certificate of Financial Implications (CFI) issued by the Ministry of Finance, Planning and Economic Development (MoFPED). The preparation of the Statement of Financial Implications (SFI), which forms the basis for the CFI, is the responsibility of Ministries, Departments, and Agencies (MDAs). This statement provides detailed revenue and expenditure estimates and projected savings over a minimum of two years’ post-enactment.
Empowering MDAs with Essential Skills
The training sessions, which began last week and will continue into the following week, aim to equip MDAs with the skills required to prepare robust SFIs. These competencies are essential for MoFPED Budget Analysts to review and draft CFIs or Letters of Financial Clearance effectively.
The 4th cohort comprised officers from key institutions, including the Ministry of Lands, Ministry of Agriculture, National Environmental Management Authority (NEMA), Uganda Land Commission, Ministry of Local Government, National Agricultural Research Organization (NARO), and the Ministry of Kampala, among others.
A Step Toward Transparent and Accountable Governance
Speaking at the closing ceremony, Mr. Moses Sonko, Principal Economist at MoFPED, commended the initiative and acknowledged the value it brings to Uganda’s public policy and legislative processes. Representing the Permanent Secretary of MoFPED, Mr. Sonko highlighted the importance of the training in strengthening governance frameworks.
“This training was developed to equip us with tools and knowledge essential for our roles in ensuring that Uganda’s policy and legislative proposals are financially sound, transparent, and align with national priorities,” Mr. Sonko remarked. He encouraged participants to apply their newly acquired skills to enhance policy preparation and implementation.
He also emphasized the multi-dimensional nature of the training, which enables officers to identify the financial, social, environmental, and economic impacts of proposed bills and policies.
Participant Feedback
Participants expressed their enthusiasm and gratitude for the training. Mr. Davis Kwizera from the National Animal Genetic Resources Centre and Data Bank (NAGRC&DB) shared his positive experience, stating: “This training has offered a wealth of knowledge and an in-depth understanding of policy processes. It will significantly enhance our ability to prepare relevant policy documents. If you’ve taken the courses on Financial and Risk Analysis as well as Investment Appraisal and Risk Analysis, this program completes the package.”
The new guidelines for the clearance of financial implications will officially take effect in July 2025. PIMCoE remains committed to building the capacity of public officers to ensure that Uganda’s legislative and policy frameworks are underpinned by sound financial and risk analyses, fostering a culture of accountability and sustainable development.
For more updates on PIMCoE programs and upcoming training sessions, visit PIMCoE’s official website.
In a pivotal workshop held at Makerere University on November 12, stakeholders, researchers, and policymakers gathered to discuss the progress and emerging issues in the implementation of Uganda’s Parish Development Model (PDM). This transformative model, conceptualized by Prof. Ezra Suruma, aims to tackle some of Uganda’s most pressing socio-economic challenges: poverty, unemployment, and limited access to essential services, particularly in healthcare and agriculture.
Prof. Suruma, the architect of PDM, underscored the crucial role of researchers in creating wealth-empowering strategies for Ugandans. “The PDM is designed to eradicate poverty, promote economic inclusion, improve service delivery, and modernize agriculture,” Prof. Suruma stated. He highlighted that the model not only provides a pathway for Uganda’s rural households to participate in the economy but also aims to address the underlying issues that leave many citizens unable to afford basic needs.
The Vice Chancellor of Makerere University, Prof. Barnabas Nawangwe, commended Prof. Suruma’s visionary leadership and the significant impact PDM is expected to have on communities across Uganda. “The PDM stands as one of the largest government interventions aimed at eradicating poverty and uplifting communities,” he remarked. Prof. Nawangwe also emphasized Makerere University’s commitment to supporting PDM through the PDM Lab hosted by the College of Business and Management Sciences (CoBAMS), which serves as a hub for real-time data analysis to guide the implementation of PDM activities across the country.
The PDM Lab at CoBAMS, led by Prof. Eria Hisali and funded by the United Nations Development Programme (UNDP), is instrumental in collecting, analyzing, and interpreting data that can shape PDM policies at the grassroots level. During the workshop, Dr. Suruma extended his appreciation to UNDP for their support and acknowledged the researchers for their efforts in generating valuable insights into the effectiveness of PDM.
Despite Uganda’s notable economic growth in recent years, poverty remains a persistent challenge, with a significant portion of the population struggling to meet basic needs. Unemployment rates, especially among youth, are high, limiting economic opportunities for the country’s largest demographic. Access to healthcare, particularly in rural areas, is another critical issue, with many Ugandans unable to afford or reach essential medical services. These challenges underscore the need for initiatives like the PDM that are designed to create sustainable economic opportunities, improve household incomes, and ensure equitable access to services.
“PDM seeks to empower households to create wealth, ultimately reducing dependence on subsistence farming and encouraging local economic development,” Prof. Suruma emphasized. He believes that the model’s holistic approach will foster greater self-sufficiency among Uganda’s communities by addressing poverty from multiple angles, including agricultural modernization, financial literacy, and service accessibility.
As the workshop concluded, participants expressed optimism about PDM’s potential to drive sustainable change. Prof. Nawangwe reiterated Makerere University’s dedication to supporting this national initiative, affirming that the PDM Lab will continue to play a key role in assessing and enhancing the model’s effectiveness.
The Parish Development Model offers a beacon of hope for millions of Ugandans striving for a better quality of life, aligning with Uganda’s broader aspirations for economic growth, social equity, and sustainable development.
Business & Management
Study Explores PPPs for Sustainable Development in Uganda’s Tourism and Health Sectors
On November 11, 2024 the School of Business held a research dissemination workshop led by Dr. Jude Thaddeo Mugarura, a lecturer and researcher whose study focused on “Managing the Public Private Partnership (PPP) Operating Environment for Sustainable Service Delivery in Uganda’s Tourism Sector.” The event also featured research by his student, Simon Peter Kyomuhendo, who presented findings on “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector.”
Both studies, which delve into the role of PPPs in two crucial sectors—tourism and health—aim to provide insights into how strategic partnerships between public and private entities can address pressing service delivery challenges in Uganda. Dr. Mugarura’s study in the tourism sector emphasized the importance of a stable operating environment for PPPs, highlighting the need for clear policies, regulatory support, and sustainable practices that allow both public and private stakeholders to thrive. His research suggests that a conducive PPP environment is essential for Uganda’s tourism sector to achieve sustainability, attract international visitors, and create job opportunities, while preserving the country’s cultural and natural heritage.
Kyomuhendo’s research, titled “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector,” explored how PPPs can improve value for money (VFM) in healthcare delivery by encouraging local content utilization. His findings revealed a positive correlation between PPP adoption and VFM in healthcare, suggesting that well-structured partnerships can enhance efficiency and service quality. However, he noted that while PPPs support infrastructure development and resource allocation, local content utilization does not always have a strong moderating effect on VFM, indicating potential areas for policy improvement to ensure meaningful local engagement.
Dean of the School of Business, Prof. Godfrey Akileng, lauded the researchers for their dedication to tackling critical issues in Uganda’s development sectors. “These studies bring much-needed evidence to the table, demonstrating the potential of PPPs to transform our tourism and health sectors,” Prof. Akileng remarked. He emphasized that such research is pivotal to Makerere University’s commitment to producing actionable knowledge that aligns with Uganda’s national development goals.
Prof. Akileng extended his gratitude to the Carnegie Corporation of New York for supporting these projects, acknowledging that their funding was instrumental in advancing impactful research. “The generosity of our donor has enabled us to conduct thorough research and share insights that will inform policy and guide sustainable development efforts in Uganda,” he added.
The workshop encouraged discussion among participants, including policymakers, private sector representatives, and university staff, on the importance of PPPs in creating a resilient service delivery model. Dr. Mugarura highlighted the need for continual assessment of the PPP framework to adapt to evolving economic and social demands. He recommended that the government prioritize regulatory improvements and capacity building for local firms to enhance their role in PPP projects.
The dissemination workshop concluded with a collective call for increased collaboration between the public and private sectors. Both researchers emphasized that strategic partnerships hold the key to addressing Uganda’s service delivery challenges and achieving sustainable growth in tourism and healthcare.
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