Whether they like it or not, many Africans faced with the possibility of having to access water through prepaid meters have resorted to unprotected and often unclean sources of water because they cannot afford to pay. Credit: Jeffrey Moyo/IPS

By Jeffrey Moyo
HARARE, May 8 2015 (IPS)

While many countries appear to have met the U.N. Millennium Development Goal (MDG) of halving the proportion of people without sustainable access to safe drinking water, rights activists say that African countries which have taken to installing prepaid water meters have rendered a blow to many poor people, making it hard for them to access water.

“The goal to ensure that everyone has access to clean water here in Africa faces a drawback as a number of African countries have resorted to using prepaid water meters, which certainly bar the poor from accessing the precious liquid,” Claris Madhuku, director of the Platform for Youth Development, a Zimbabwean democracy lobby group, told IPS.

Prepaid water meters work in such a way that if a person cannot pay in advance, he or she will be unable to access water.Despite U.N. recognition that water is a human right, international financial institutions such as the World Bank argue that water should be allocated through market mechanisms to allow for full cost recovery from users

As a result, African rights activists like award-winning Terry Mutsvanga from Zimbabwe and other civil society organisations are against the idea of prepaid water meters.

“If one has to pay upfront before accessing water, then it would mean those in most need would be denied access,” Mutsvanga told IPS, adding that water is a global human right.

Mutsvanga was echoing the United Nations General Assembly which, in July 2010, emerged with a binding resolution on the human right to water and sanitation – but for Africa, the human right to water may be far from reality.

Laden with a population of approximately 1.1 billion, Africa’s 300 million people have no access to safe drinking water, according to the U.N. Environment Programme (UNEP).

Many rights activists on the continent attribute Africa’s mounting water challenges partly to the advent of prepaid water meters.

“We already have hundreds of millions of people without access to clean water, and imagine the severity of the water challenge if water prepaid meters would reach everyone on the continent,” Mutsvanga said.

Over the years, prepaid water meters have been widely used in African countries like Namibia, Nigeria, Swaziland and Tanzania, as well as South Africa, where the meters which were rolled out in 1999 are currently in low-income areas.

Zimbabwe is currently conducting a pilot project aimed at installing the prepaid water meters, in towns and cities to begin with. And the country’s impoverished urban dwellers like 51-year old Tinago Chikasha are in panic mode, fearing the worst may be coming their way.

“Local authorities are pressing ahead with the idea of prepaid water meters, but jobless people like me have no money to make prepayments for water while we already have unpaid water bills running into thousands of dollars, which local authorities say they will deduct through all future water prepayments, meaning we run into the danger of having dry water taps for as long as we owe local authorities,” Chikasha told IPS.

In non-African countries like the United Kingdom, prepaid water meters are no longer being used after they were declared illegal in 1998 for public health reasons.

They were also abandoned in South Africa at one stage following a massive cholera outbreak, but were reintroduced and have replaced previously free communal standpipes in rural townships.

Despite U.N. recognition that water is a human right, international financial institutions such as the World Bank argue that water should be allocated through market mechanisms to allow for full cost recovery from users, and civil society activists like Melusi Khumalo in South Africa blame capitalist tendencies for necessitating the advent of prepaid water meters.

“Prepaid water meters are a result of such negative policies by institutions like the World Bank and they [prepaid water meters] deny water access to those in most need,” Khumalo, who is affiliated to Parktown North Residents’ Association in Johannesburg, told IPS.

In Zimbabwe, Mfundo Mlilo, chief executive officer of Combined Harare Residents’ Association (CHRA), told IPS: “We are vehemently against the prepaid meter project because it will not solve the problems of water delivery, and these prepaid water meters will not lead to residents receiving adequate safe and clean water, while the same prepaid water meters will also not lead to increase in revenue flows as the City [of Harare] claims.”

Last month, Harare’s Town Clerk Tendai Mahachi was reported by Zimbabwe’s Weekend Post as saying: “With these meters we expect roughly to save about 20-30 percent of the current costs we are incurring.”

According to Mahachi, at least 300 000 households in the Zimbabwean capital are scheduled to have prepaid water meters installed, while all new housing projects will be obliged to install meters.

Meanwhile, with prepaid water meters set to rake in big money for some of Africa’s local authorities, there are those like Nathan Jamela, an urban dweller in Bulawayo, Zimbabwe’s second largest city, who fear the health consequences.

“We experienced the worst cholera outbreak in 2008, and we fear that if prepaid water meters are installed in every household here we will slide back to the crisis, with many people unable to afford to pay for water,” Jamela told IPS.

Edited by Phil Harris   

Street vendors in Africa reflect the income inequality that pervades the continent, much of it due to corruption. Credit: Jeffrey Moyo/IPS

By Jeffrey Moyo
HARARE, Feb 21 2015 (IPS)

Reports this year of illicit moneys from African countries stashed in a Swiss bank – indicating that corruption lies behind much of the income inequality that affects the continent – have grabbed international news headlines.

Secret bank accounts in the HSBC’s Swiss private banking arm unearthed this year by the International Consortium of Investigative Journalists (ICIJ) were said to hold over 100 billion dollars, some of which came from Africa, including some of the poorest nations on the continent.

When these funds leave the region, they deny the very nations that need them most.

For example, at least 57 clients of the Swiss HSBC bank associated with Uganda were reported to be worth at least 159 million dollars. The World Bank has estimated that Uganda loses more than 174.5 million dollars in corruption annually.“Income inequality begins with our political leaders and corrupt wealthy business people who, more often than not, illicitly own the resources of the [African] continent” – Claris Madhuku, Platform for Youth Development, Zimbabwe

It is not a crime for Africans to have a Swiss bank account. But questions are now being raised by local tax offices as to whether the proper taxes were paid on the stashed amounts.

In South Africa, the head of the Revenue Service, Vlok Symington, said his office was analysing the information. “Early indications are that some of these account holders may have utilised their HSBC accounts to evade local and/or international tax obligations,” Symington was reported as saying by the South Africa Sunday Times.

“Income inequality begins with our political leaders and corrupt wealthy business people who, more often than not, illicitly own the resources of the continent,” Claris Madhuku, director of the Platform for Youth Development, a democracy lobby group in Zimbabwe, told IPS.

Diamonds, for example, which have made many traders wealthy, are often mined by the poorest of the poor, treated almost as slaves in war-torn African countries, despite the Kimberley Process Certification Scheme, which was established in 2003 to prevent the flow of these diamonds.

“It’s a case of greed and corruption,” thundered Zimbabwean independent political analyst, Ernst Mudzengi. “Africa has parasitic politicians who are primarily concerned with self-centred political power and economic gain as ordinary Africans remain at the periphery in poverty,” Mudzengi told IPS.

Development experts here attribute income inequalities to the continent’s lax anti-corruptions laws.

“African countries do not have sound anti-corruption laws and politicians and the rich amass too much power exceeding even the powers of the police here, leaving them with the liberty to accumulate wealth overnight by whatever means without being questioned,” Nadege Kabuga, an independent development expert in Kigali, Rwanda’s capital, told IPS

“It’s shocking how huge banks such as HSBC have created a system for enormously profiteering at the expense of impoverished ordinary people, worse by assisting numerous millionaires from Africa in particular to evade tax payment, disadvantaging the already poor,” Zenzele Manzini, an independent economist based in Mbabane, the capital of Swaziland, told IPS .

“Very often, government directors, ministers and their secretaries are the ones globetrotting on government businesses, awarding themselves huge allowances and the lower government workers remain stuck at the periphery with no extra benefits besides the meagre salaries they get monthly,” a top Zimbabwean government official in the Ministry of Labour, told IPS on the condition of anonymity, afraid of victimisation.

Writing for Financial Transparency Coalition, a global alliance of civil society organisations and governments working to address inequalities in the financial system, Koen Roovers, the coalition’s European Union (EU) Lead Advocate, asked the deeper question: “How do we prevent this in the first place?”

To catch fraud sooner rather than later, capacity in developing countries must be increased, Roovers said. “The scale of the challenge is significant: the UK-based charity Christian Aid has estimated that sub-Saharan Africa would need around 650,000 more tax officials to reach the world average.”

Rich states have promised help to poor countries to build the capacity they need, but these commitments have yet to be honoured.

Researchers at the U.S.-based Global Financial Integrity, a non-profit organisation working to curtail illicit financial flows, said developing nations have lost almost one trillion dollars through illicit channels.

Without clearly defined measures to curb income inequalities, economists say the African continent may be headed for the worst levels of poverty set to hit even harder at the already poor.

“Africa may keep facing perpetual poverty amid rising income inequalities because governments here have no institutions and expertise to identify and halt money laundering by corrupt wealthy individuals and politicians evading tax,” Zimbabwean independent economist, Kingston Nyakurukwa, told IPS.

According to Roovers, “criminals and their enablers are creative, so the only way to prevent future scandals is to shed light on what criminals and tax dodgers are trying to hide. This is why online registers of assets for all legal persons and arrangements are necessary and should be publicly available.

“If we turn a blind eye to these loopholes,” he added, “economic development for all will continue to be undermined by illicit actors looking to exploit them.”

Edited by Lisa Vives/Phil Harris