The state-owned National Water and Sewerage Corporation (NWSC) is determined to extend clean water infrastructure and sewerage to the entire nation. Progress is fast as well-managed services pay for new investment and upgrades.
As a public utility, NWSC is keenly focused on its own responsibility amidst Uganda’s bid to become a middle-income nation – supplying running water to all citizens. In the towns and cities, the task has been met with excellent results, but the countryside continues to pose a greater challenge.
“When this corporation started in 1986, we were only in about six towns in Uganda. By 2011 we were in 23 towns, and now we are 226,” says Silver Mugisha, who joined the NWSC 24 years ago as an engineer and is now the managing director.
To Mr Mugisha, the equation is simple: greater efficiency leads to better financial results and the possibility of investing more in improvements. “We try to eliminate wasteful expenditure. That’s why our building has gone from 80 kilometres a year four years ago to over 1,000. This year we are going to extend the network by 2,000 kilometres. Not many public corporations in Africa break even, let alone invest in improvements.”
But, the NWSC chief points out, to pump on all cylinders, Uganda needs greater inward investment so more local businesses begin manufacturing equipment and supplies, from water meters to pipe fittings and chemicals.
As an engineer first, Eng. Mugisha is a man of exacting standards, allowing him to steer the utility through a massive expansion process while maintaining cost efficiency and a healthy balance sheet. The big challenge now for the corporation is to complete its mission of connecting all urban Ugandans to the network and finding solutions to boost rural supply, including a need for innovative new technologies and entrepreneurial investment.
The NWSC has multiplied its user accounts by 10 over the past 20 years. What roles have you played in this transformation and what major challenges lie ahead?
I started working here as an engineer in 1994, joining top management 10 years ago and taking over as managing director four years ago. So many things have happened in the organisation. We are now much more customer focused and focused on infrastructure growth, so we will be contributing very seriously to the development of the country. We had the challenge of not meeting our costs, not even the operating and maintenance costs. Now we meet all of our costs and even have some funds for investment. When this corporation started in 1986, we were only in about six towns in Uganda. By 2011 we were in 23 towns, and now we are 226.
So what have been the biggest challenges arising from some rapid growth?
The main challenges have been in financing, which has prevented us from reaching 100% of the people. But, initially at least, the problems were also in inefficiency. The staff’s attitudes were not aligned correctly, but now they are business oriented and customer driven – they know that the customer is the reason for our existence. Service is our mission, and providing water to every Ugandan. Our employees understand that doing this will help the objective of developing the country.
“When this corporation started in 1986, we were only in about six towns in Uganda. By 2011 we were in 23 towns, and now we are 226”
You are a public company that provides a reliable service and makes a profit. Why does this seem to be such a hard balance to strike in many other cases?
I don’t really believe in the private versus public issue. I believe in an institution where the staff are focusing on customer service and looking to be efficient, containing costs so that investments can be made in the development side of things. We have been very strong on introducing management-changing programmes to align the attitude of staff with a strong commitment to the work. We have introduced new contracts to improve the productivity of workers. They know that if they don’t perform, they will have a problem. If you perform well, you can even get incentives. We are efficiency-sensitive. We don’t want to waste money, so every little bit of money we have, we spend it wisely. We can now even try to reduce the cost of amenities. In the last four years we have gone from serving four million people to 8.5 million, and it’s because of this mantra of working hard. We try to eliminate wasteful expenditure. That’s why our building has gone from 80 kilometres a year four years ago to over 1,000. This year we are going to extend the network by 2,000 kilometres. Not many public corporations in Africa break even, let alone invest in improvements.
What are the main future objectives of the corporation and what role does it play in terms of the social and economic development of Uganda?
Our main objective is to provide water and sewerage service to Ugandans in a cost-effective and financial sustainable way. And our commercial success allows us to deliver water to some people who cannot even afford to pay for this vital service.
“There are so many areas with potential for investment, such as affordable technologies for sewage. We have patented sewage treatment plants and need investment to develop them”
Could international investors help you to take your operations to the next level?
Any investors who come and set up here will need water and we can supply them. But beyond that, there are big projects to be carried out here for those who can bring good technologies.
Now, we are looking at what to do with sewage, and we think investors could come and develop a way to turn it into biofuel bricks. People here use a lot of charcoal for cooking which means cutting down too many trees. We have 600,000 connections, up from 300,000 four years ago, and we always need more implements. We are sick of having to import water meters, and we would love investors to come and start producing meters here. Now there are three pipe factories in Uganda but none that makes the fittings for them. We also have to import the chemicals we need, such as polymers. Right now, we are putting in place salt electrolysers, and for this we need purified sodium chloride – another thing we have to import. There are so many areas with potential for investment, such as affordable technologies for sewage. We have patented sewage treatment plants and need investment to develop them. “We offer consulting services to utilities in different countries, including Kenya, Tanzania, Zambia, Nigeria and Sierra Leone, as well as in Bangladesh and Trinidad & Tobago”
The target of 100% water supply in urban areas is close to being reached. Rural areas clearly present a great challenge. What is the corporation’s objective and how can it reach this?
It’s a tall order, but one we are pursuing and it should not take long. We have the drive and the energy to achieve it. Our main focus is to serving urban areas and move into peripheral, suburban areas. As these are reached and we join suburban areas, then we are eating into the rural sphere. But the challenge of rural Uganda is still there. The technology required is different. For example, an investment is needed in affordable solar systems to power water production units in remote places. We are investing more in environmental protection, for which we set aside part of our budget. We do work in planting trees and educating people in how they can preserve the environment from which our water flows.
How could UK investors help in areas where there are needs not being met?
The UK has a long history of economic development and had championed many technologies. We would welcome any technology that made our services cheaper and more efficient. For example, in our government is taking steps to boost industry and we have established industrial parks. These need a lot of work and also water, but different industries require different qualities of water. Here we need to use new technology to produce water of differing qualities to help make our industry competitive. We would welcome anyone who could help us produce cheap industrial-quality water.
How does NWSC stand out compared to other over water and sewerage utilities in Africa?
Apart from the performance of our staff and high efficiency levels, one of the things that makes us stand out is that we are one of the very few water and sewerage corporations in Africa that offer consulting services to utilities in different countries, including Kenya, Tanzania, Zambia, Nigeria and Sierra Leone, as well as in Bangladesh and Trinidad & Tobago. People here are comfortable in choosing us to represent the country at an international level, so, for example, I am the vice president of the International Water Association on the world level and also vice president of the African Water Association.
How much of a challenge is collecting money from customers?
In our culture we say that you can’t milk an unhappy cow. If you want milk, you must have a happy cow by giving her some food and a nice place to rest. Customers are the same. We make sure they are happy with the service and we have also invested in the call centre and in social media to keep our customers contented.
This article was first published in the Daily Telegraph of UK in publication is out this week coinciding with the on going CHOGM 2018 that is being hosted in London.
