CUSTOMERS WILLINGNESS TO PAY FOR WATER SERVICES, BLANTYRE, MALAWI
Abstract
Blantyre Water Board is a utility parastatal organization established under the Water Works Act No. 17 of 1995 to supply portable water for commercial, industrial, institutional and domestic use. However, one of the major challenges that the board is experiencing is inefficiencies in revenue collection which is influenced by customers willingness to pay. Hence the study aimed at assessing customers willingness to pay for water services in Blantyre. Three study sites in Blantyre namely; Ndirande, Zingwangwa and Nyambadwe were randomly selected to be used in the study. A total sample size of 120 customers of Blantyre Water Board were sampled using simple sampling method from the three selected study sites for the assessment of customers willingness to pay for water services.
Primary data was collected using observation, key informant interviews with Blantyre Water Board staffs and questionnaires which were administered face to face with BWB customers. Out of 120 questionnaires distributed, 97 of them were achieved which represents 81% response. Secondary data was collected from an excel spreadsheet that contained debtor’s data which was provided by Blantyre Water Board staffs. Primary data collected was analysed using Microsoft excel 2016 tool to develop pie charts and bar graphs while secondary data was already analysed by Blantyre Water Board staffs hence it was just extracted from an excel spreadsheet. The findings from the obtained data showed that the majority (81%) of the BWB customers were willing to pay for the water services with respect to the quality water provided. Although the customers were willing to pay for the water services, they were also proposing improvement in the reliability of water supply, pressure of water supply, customer care and billing accuracy.
The findings for the study expressed that BWB should ensure proper maintenance of the water distribution system to increase the level of customers willingness to pay for the water services, at the same time minimizing non-revenue water. And also, BWB should be highly responsive when it comes to customers’ complaints.
Research summary
A total sample size of 120 customers of Blantyre Water Board were sampled using simple sampling method from the three selected study sites for the assessment of customers willingness to pay for water services. Primary data collected was analysed using Microsoft excel 2016 tool to develop pie charts and bar graphs while secondary data was already analysed by Blantyre Water Board staffs hence it was just extracted from an excel spreadsheet. Although the customers were willing to pay for the water services, they were also proposing improvement in the reliability of water supply, pressure of water supply, customer care and billing accuracy. The findings for the study expressed that BWB should ensure proper maintenance of the water distribution system to increase the level of customers willingness to pay for the water services, at the same time minimizing non-revenue water.