Smart Water Systems. Tuesday 7 th December 2010 Lusaka, Zambia. ZamDEx
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1 Smart Water Systems Tuesday 7 th December 2010 Lusaka, Zambia ZamDEx
2 Challenges and prospects of water management in Zambia
3 Challenges and prospects of water management in Zambia
4 Africa leads the way in the mobile money revolution
5 Africa leads the way in the mobile money revolution
6 Global growth of smart water metering technology
7 Global growth of smart water metering technology
8 Disruptive technologies and developmental impacts Mobile telephony can contribute meaningfully to every single MDG. The gains are breathtaking in promoting livelihoods, improved health, better schools, and other areas. -Prof Jeffrey Sachs, special adviser to the UN Secretary General on the MDGs New technology-based solutions that did not exists when the [Millennium Development] goals were endorsed can and should be leveraged to allow for rapid scaling up. The most important of these technologies involve use of mobile telephones, broadband internet and other information and communication technologies -UN Secretary General Ban Ki Moon
9 Mobile money is leapfrogging traditional modes of banking in Sub-Saharan Africa Mobile phone subscribers in SSA (per 100 people): Rapid expansion of mobile banking services in Sub-Saharan Africa: Mobile subscriptions Linear projections from 2008 In comparison, there are only 16.3 bank accounts per 100 adults in Sub-Saharan Africa Sources: World Bank Databank; World Bank and CGAP 2010
10 M-PESA in Kenya is the iconic success story 13 million users in just three and a half years Millions M-PESA users: Mar 2007-Aug 2010 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 By 2009, ~40% of Kenyans used M- PESA compared to 19% who had bank accounts M-PESA success inspired a range of other mobile banking products MPESA can now be used to pay water bills for metered customers in Eldoret, Kisumu, Nairobi and Nakuru Now over 70% of households in Kenya and over 50% of the poor, unbanked and rural populations use M-PESA Sources: Central Bank of Kenya 2010; CGAP 2010; FinAcess Kenya 2009
11 Potential benefits of smart water metering Typical AMR/AMI configuration Potential benefits Water meter + radio transmitter Walk-by or driveby data collection Fixed-network Meter-reading application + customer billing Faster/more efficient meter reading Theft and leak detection Accurate measurement of UfW Billing accuracy Enabling a flexible tariff structure Improved debt collection Monitoring resource use Scope to integrate with mobile banking
12 Smart water metering projects are expanding rapidly Global shipments of smart water meter modules predicted to double by 2016 Millions Projected smart water meter module shipments: North America Europe Middle East/Africa Sources: Pike Research 2010 CAGR 12.8% Latin America/Carribean Asia Pacific
13 In Zambia, more people have access to improved water services than ever before % Access to improved water sources: Zambia 89% 88% 88% 87% 87% 80% 60% 40% 20% 49% 51% 23% 29% 54% 36% 58% 60% 42% 46% 0% Urban Rural Total Sources: WHO/UNICEF Joint Monitoring Programme
14 ... and a decade of water sector reforms are beginning to yield dividends in urban areas 100% Unaccounted for water 100% Meter ratio 50% 52% 44% 50% 22% 55% 0% 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 0% 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 100% 50% 58% Collection efficiency 86% 100% 50% 60% Recovery of O&M costs 106% 0% 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 0% 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 Sources: NWASCO sector reports 2002/3 to 2009/10
15 Yet major barriers to accessible and sustainable water services persist... Millions Population lacking access to improved water sources: Urban Rural Around one third of handpumpsin Zambia are thought to be non-functional Sources: WHO/UNICEF Joint Monitoring Programme; Rural Water Supply Network 2007
16 ... and emerging trends may introduce new resource pressures Projected population growth to Millions Historical population Future projection Sources: World Bank Databank, UN Population Projections
17 What are the major barriers to the sustainable provision of water services in Zambia? No. of metered connections (000 s) 45% of urban water connections are unmetered Metered connections and metering ratio of CUs: % 39%39% 43% 32%32% % 55% /3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 Unmetered connections Metered connections Metering ratio 2009/10 60% 50% 40% 30% 20% 10% 0% NWASCO identifies challenges facing the water sector Low investment flowing into sector Dilapidated and inadequate infrastructure Water pollution, especially from mining activities UfW remains high Lack of regulation on the use of underground water Sources: NWASCO sector reports 2002/3 to 2009/10
18 What are the prospects for mobile banking in Zambia? Mobile phone subscriptions are growing at a rapid rate Mobile phones now more accessible than bank accounts A range of players in the mobile money arena Phone access in Zambia (per 100 people): Mobile phone vsbank account ownership % 40% 20% 0% 41.8% Mobile subscriptions Linear projection (from ) Landline connections 79.4% 39.2% Live in household with a mobile phone Urban 22.6% 8.6% Have/use a bank account Rural Sources: World Bank Databank; FinScope Survey 2009; GSMA 2010
19 Understanding the primary resource base is fundamental to sustainable water management Few, if any, privately-operated boreholes are metered Example: Lusaka groundwater use 74% of commercial farmers in Lusaka area abstract 25M m 3 of groundwater a year - Daily dry season abstraction equivalent to 75% of LWSCs groundwater abstraction 68% of industries abstract 4.3M m 3 of groundwater a year - Top three water users account for 85% of total industrial water volume abstracted (Mayerhofer, Shamboko-Mbale& Mweene, 2010)
20 Source: Mpamba et al 2008; Baume & Kang omba 2009
21 Positive steps are being taken, but how can new technologies be harnessed for effective, equitable and sustainable water management in Zambia? Tanzania: Dar Es Salaam Zambia: Nkana WSC Kenya: Grundfos LIFELINK Sources: Grundfos LIFELINK 2010;
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