Abstract
Financing of multiple use (i.e. domestic and productive) water services was identified as an important ingredient to ensure improved water access for rural poor and broaden livelihood options in South Africa. Following the principles of integrated water resource management (IWRM), efficient, equitable and sustainable investments in improved water services should be based on a thorough understanding of actual demand by consumers. Comprehensive studies looking at multiple use water services are not common in South African rural areas, where most of the economic analyses focus on either domestic or irrigation water demand. This study aims at filling this gap by assessing the household demand for multiple use water services in Sekororo-Letsoalo area in the Limpopo Province. Choice modelling is the approach used to identify the attributes determining demand for water services and quantify their relative importance. Results show that households in rural areas are willing to pay for improvements in water services. Due to the current poor level of water services in the area, users are primarily concerned with basic domestic uses and, consequently, demand for productive uses is low. Only households already relatively well served are interested in engaging in multiple water uses.
Highlights
Water scarcity is considered to be a major constraint to socioeconomic development in South Africa (SA) (DWAF, 2004)
Estimations are significant and consistent with the findings of Snowball et al (2007), who showed that water price was very significant for households living in an urban area of South Africa (Grahamstown)
This could be due to the fact that, unlike households without private taps who are still worried about meeting their basic water needs, their water supply is sufficient in terms of quantity and reliability to allow them engaging in non domestic water uses
Summary
Water scarcity is considered to be a major constraint to socioeconomic development in South Africa (SA) (DWAF, 2004). SNOWBALL D, WILLIS KG and JEURISSEN C (2007) Willingness to pay for water service Improvements in middle-income urban households in South Africa: A stated choice analysis. Tumber Fourie Consulting Engineers (2003a) Water Services Development Plan for the Bohlabela District Municipality. Tumber Fourie Consulting Engineers (2003b) Water Services Development Plan for the Maruleng Municipality. VAN KOPPEN B, MORIARTY P and BOELEE E (2006) Multiple-Use Water Services to Advance the Millennium Development Goals. World Vision (2005a) Enable Area Development Programme, Baseline Survey Report, World Vision, Johannesburg, South Africa. World Vision (2005b) Kodumela Area Development Programme, Baseline Survey Report, World Vision, Johannesburg, South Africa. World Bank Policy Res. Working Paper 3817 (January issue)
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