Botswana cuts water tariffs by 30% to ease economic pressures on households
In a bid to alleviate economic pressures on households, President Duma Boko announced last week that water tariffs for households will be reduced by 30%, while government institutions will see a 40% increase in their water rates.
The move is aimed at lowering the cost of living while ensuring sustainability in the country's water sector.
Speaking at a press briefing on Thursday, Boko emphasised that the decision was made to provide affordable water access for ordinary citizens while requiring government agencies to shoulder a greater financial burden, Mmegi reports.
"We are looking at making it easier for households to survive," Boko stated. "At the same time, government agencies must play their part in ensuring sustainability by paying more for their usage."
The Water Utilities Corporation (WUC), the state-owned water supplier, has been grappling with financial challenges due to mounting debts, with millions of pula owed by consumers, including businesses and government departments. The financial strain has affected WUC’s ability to maintain and upgrade water infrastructure.
While the reduction in household water costs will provide relief to consumers, the ability of the increased government tariffs to offset revenue losses remains uncertain. Some experts question whether the adjustment will help bridge the financial gap or further burden the already strained water provider.
For households, the reduction in tariffs is expected to free up disposable income, easing financial pressures amid rising living costs. However, government agencies will need to adjust their budgets to accommodate higher water costs, which could lead to cutbacks in other areas of public spending.
