Rethinking Informality in Service Delivery: The Case of Water Supply in Dar es Salaam, Tanzania

Rethinking Informality in Service Delivery: The Case of Water Supply in Dar es Salaam, Tanzania

Yohannes Edwin Kachenje*

Institute of Human Settlement Studies (IHSS), Ardhi University, Dar es Salaam

^*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90600074

Received: 18 May 2025; Accepted: 22 May 2025; Published: 30 June 2025

ABSTRACT

This paper presents the essence of informality in municipal services delivery, using the case of water supply in Dar es Salaam, Tanzania. Over the past three decades most cities of the world experienced an unprecedented under-performance of municipal services, a situation that prompted global institutional reforms for the purpose of rescuing the situation. The reforms led to inter alia increased participation of private and community-based actors, along with the conventional public actors. Although private actors were legally included in the institutional frameworks for service provision, many still operated outside the formal system of service provision, especially in developing countries. Many studies have indicated the undeniable role of private service providers in covering the gap of services delivery left by the public system, albeit they also indicated that most of these providers operated informally. Despite much documentation on informality of services delivery, the main factor discussed has been the failure of the public system to provide the services, with a limited focus on institutional factors. This gap may lead to less informed attempts in addressing informality, particularly in municipal services delivery. The objective of this paper therefore is to discuss how institutional factors contribute to the informality in this important and cross-cutting sector. The paper applies qualitative case study approach, and uses the case of water supply in a selected private scheme to explain the research phenomenon. The instruments of data collection included key informant interviews, focus group discussions, household interviews and document analysis. Adding to the existing body of knowledge, this paper points out that informality in municipal services delivery is also related to accountability voids, legitimacy and legality dilemma, and bureaucracies as an exclusion factor. In addressing the identified issues, the paper recommends improved enforcement of rules, and establishing one stop service for registration of aspiring service providers.

Keywords: Urbanization, informality, roles, governance, municipal services, water supply.

INTRODUCTION

Informal urbanization has been a common phenomenon in developing countries where a large percentage of the population lives in informal settlements, and lack of formal land tenure and infrastructure services is dominant (Kachenje, 2020; Guevara, 2014). This entails rapid and unplanned expansion of cities, normally characterized by rural-urban migration, lack of affordable housing, and inadequate urban planning, a situation that leads to occurrence of informal settlements and challenges in provision of basic services (Kachenje, 2020, Guevara, 2014, Kyessi, 2011).

In many cities of the developing world, including Dar es Salaam, informal urbanization is evidenced in various forms such as informal settlements, informal petty trading (including water vending), informal land management, informal organisations and transactions, informal land and property brokers, informal urban agriculture, as well as informal water provision (Polese, 2021, Kyessi et al, 2019, Kyessi, 2011).

Informal water provision surfaced as a result of the failure in the public system to meet water demand in urban areas, whereby non-public service providers emerged to cover the gap (Mapunda et al, 2018; Dakyaga et al, 2018; Kyessi et al, 2019; Sakijege, 2019). Also, the global reforms in the management of the water sector provided an opportunity for participation of non-public service providers, although many of them operated and continue to operate informally (Kyessi et al, 2019; Mapunda et al, 2018, Kachenje, 2025).

Informal actors’ role in service provision is among the more recent concerns (Narain, 2023). Studies have indicated that private water provision is an integral component of urban water supply (Mapunda et al, 2018; Dakyaga et al, 2018; Kyessi et al, 2019; Sakijege, 2019; Kachenje, 2025), noting also that it often occurs informally. Although it is undeniable that the failure of the public system of services provision was an important factor for the emergence of informality, there is a limited discussion on the contribution of institutional factors to this situation. This is an obvious gap in the sense that the series of institutional reforms and their implementation have a bearing on how service provision operates, a reality that has to be well captured in order to adequately inform the attempts for addressing issues of informality in service provision.

Thus, this paper addresses that knowledge gap by discussing how institutional factors contribute to informality in this basic service (water supply), focusing mainly on the private service providers.

Informality And Service Delivery

Informality across sectors

 Over the past decades there have been many studies on informality. However, there have not been a consensus on what informality means, how to measure it and theoretically arrive at a generally accepted explanation (Polese, 2021, Vainio, 2012). As a result, many studies refer to informality simply as ‘‘the opposite of formal’’, thus leading to confusion in the topic (Polese, 2021:1).

The term informality is widely used across several disciplines including economics, human settlements, housing (Turner, 1968), land management (Kombe and Kreibich, 2000; Leaf, 2012), as well as planning (Roy, 2005), and over the past decade it was observed to extend to political science, international relations, employment, politics and governance (McFarlane and Waibel, 2012; Roy and AlSayyad, 2004; Dixit, 2007; Helmke and Levitsky, 2004; Stone, 2013). This situation is not surprising, given that the term informality has become a spontaneous and flexible idea (Peattie, 1987 in Polese, 2021). In other words, informality in service provision could be having a definition customized to the sector, although it still remains to be informality.

Informality in service provision and water supply

Informality in service provision as discussed in this paper is mainly occurring parallel to existence of informal human settlements. Informal service delivery has been defined in a number of ways, although most of the definitions refer to the provision of services occurring outside the formally established structures in the community (Kyessi, 2011, Dakyaga et al, 2018).

Further, informal service delivery may involve informal systems of reciprocity, community-based initiatives, or individual efforts with the purpose of contributing to covering the gap of service needs left by the official or formal service providers (Duminy, James, 2011). According to Lince (2011), informal service providers aim at exploiting the economic flexibility that is offered by the indeterminable framework of markets, direct bargaining power, less vulnerability, as well as higher profits from their investments. Thus, services can range from basic needs like sanitation and water access in informal settlements to more complex issues like access to justice or healthcare (Lince, 2011).

In defining informality of urban water supply, Vishal Narain et al (2023) associated informality of water supply with being non-pipe, especially because the formal system was the one that used piped system in supplying water. However, studies done by Dakyaga et al (2018), Kyessi et al (2019) and Kachenje (2025) revealed that informal private service providers in some informal settlements of Dar es Salaam Tanzania supplied water using piped networks. This implies that, having piped water network is not a criterion for defining informality of water supply at least in the Tanzanian context.

Deriving the emergence of informal water provision in Tanzania

The rise and expansion of informal water supply services were mainly driven by the inability of formal water systems to satisfy the demand for these services, especially in developing countries (Kyessi et al, 2019). By late 1990s, there was a global shift in service delivery due to the poor performance of the sector in many cities worldwide (IDRC, 1997; Makurira and Mugumo, 2003; Bel and Fageda, 2008; Marin, 2009; Kachenje, 2019). During this time, global policy trends began to favour market solutions over government provisions, and decentralized governance over centralized systems (UN-Habitat 2003). Water supply was one of the municipal services subjected to reform, permitting the involvement of non-public entities (Bel and Fageda, 2008).

As a result, the institutional reforms were adopted in many developing countries, including Tanzania, with the hope of reviving the sector’s performance. The reforms included reviewing national policies on water provision, which implied inter alia, giving more room for participation of private and other non-public water suppliers into the sector (Marin, 2009).

In Tanzania, the National Water Sector Development Strategy of 2006 and recent reforms have led to the enactment of the Water Supply and Sanitation Act of 2019, which empowers Water Supply and Sanitation Authorities (WSSAs) and Community-Based Water and Sanitation Organisations (CBWSOs) to contract service providers — whether they are public, private, or community-based — to ensure the continued provision of water in accordance with the established agreements (Triche, 2012; URT, 2019). Proper execution and compliance with this legal framework could reduce undesirable forms of informality in the delivery of this essential and multifaceted service.

The institutional framework for urban water supply in Tanzania

Tanzania’s water management legislation and policy are designed to promote a sustainable and participatory approach in water supply governance, ensuring that all individuals have access to essential water and sanitation services (Kyessi et al, 2019).

While there are many statutes and policy instruments relevant for guiding urban water supply in Tanzania, there are two which are core, namely the Water Resources Management Act (WRMA) of 2009 and the Water Supply and Sanitation Act of 2019.  Other key instruments are the National Water Policy (NAWAPO) 2002, and the National Water Sector Development Strategy (NWSDS) 2006.

The WRMA focuses on the sustainable management and conservation of the water resources, while also addressing aspects related to water supply services, while the Water Supply and Sanitation Act 2019 guarantees the right of individuals to access efficient, effective, and sustainable water supply and sanitation services, setting a foundation for universal access.

The NAWAPO decentralizes water governance from central to local levels, promoting user-managed services and ensuring the participation of both men and women. The two principal acts are also translated from this policy. The National Water Sector Development Strategy (NWSDS) 2006 is a program for implementing NAWAPO. It focuses on enhancing water and sanitation services, aiming to provide adequate, safe, and clean water in urban, rural, and peri-urban areas. The NWSDS also outlines entities authorized to provide water services, which include Water Supply and Sanitation Authorities (WSSAs – including the clustered ones); Community-Owned Water Supply Organizations (COWSOs)[1]; and Service Providers (Kyessi et al 2019). Despite the clear articulation of authorized entities for service provision, it is at this level that a lot of informality occurs. This prompts the analysis of exclusion and potential exits related to their occurrence.

Water supply in Dar es Salaam

Dar es Salaam is among the cities with the highest urbanising rate in Tanzania, ranking 3^rd in Africa, and 9^th globally (Mcgranahan et al, 2016, in Dakyaga et al 2022). Its population was over four million in 2012, which was almost 10% of the country’s total population (URT, 2013). In 2022 before the country’s national population census, the city’s population was projected to have reached six million (URT, 2018). However, it reached 5.4 million, which is almost 9% of the country’s total population (URT, 2022). Meanwhile, the city was expanding in peri-urban areas, following the main trunk infrastructure lines, especially the major roads (Msangi, 2014).  In reality, the city’s rapid urban population growth in the past three decades had outpaced service provision capacities of the institutions responsible for municipal services provision (Kachenje, 2025; Kyessi, 2019; Kachenje, 2017).  This was observed to be the case for almost all the municipal services in the city, including water supply, implying a need for inter alia more participation of non-public actors, so as to join hands in addressing the inadequacies.

Based on the status and governance arrangements that existed in the period before February 2021, the city of Dar es Salaam had five municipal councils (see Figure 1), vested with responsibility for delivery of various services related to health, education, fire and solid waste, excluding water supply. Just like in the other Tanzanian cities, the delivery and management of water supply services was directly under a semi-autonomous public parastatal organization, known as Dar es Salaam Water and Sewerage Authority (DAWASA). This is the primary public agency responsible for delivery of water and sanitation services in the city, including providing service connections, building and rehabilitating the major network systems.  The city and the municipal councils’ role in relation to water supply was confined to constructing and monitoring boreholes in areas where the public (DAWASA) supply network did not reach (Kombe, Ndezi and Hofmann, 2015). This role which was under these and all other local authorities has recently been shifted to the Rural Water and Sanitation Agency (RUWASA) following the enactment of the Water Supply and Sanitation Act of 2019 (REAL-Water, 2022).

Furthermore, it was also the responsibility of DAWASA (being the city’s water and sanitation authority) to monitor and regulate the activities of the non-public actors involved in providing water and sanitation services in the City.  The actors included small and large scale water vendors, operators of deep wells and cesspit emptier, among others (Kombe, Ndezi and Hofmann, 2015). DAWASA did not perform this role adequeately. As a result there were many non-public service providers who were operating informally.

The role of informal water supply in Dar es Salaam

Mapunda et al (2018) revealed that almost 100% of peri-urban population in Dar es Salaam relied on informal small scale water suppliers, through modes such as water vendors, small-scale providers, and even household collection from unimproved sources. Also, more than 64.1% of the communities acknowledged that informal water providers are important in increasing water access (Mapunda et al, 2018). Although Sakijege (2019) highlighted some risks associated with informal service provision, she also echoed the important role played by this private service. This underlines the obvious importance of informal water suppliers in these settlements. This study defines informal water supply mainly as the system of facilitating water provision outside the formal and publicly regulated water system. Informal systems are known for their crucial role as far as water supply is concerned, particularly in areas lacking piped water (Mapunda et al, 2018; Kyessi et al, 2019).

Theoretical and conceptual framework for informal water services provision in urban areas

The informality that is occurring in the water supply service can be explained by a combination of the theory of Institutions by Geoffrey Hodgson (2006) and the market-based approach to informality (Vainio, 2012). Hodgson (2006) broadly defines institutions as systems of established and prevalent social rules that structure social interactions. These rules include formal and informal ones. Similarly, institutions are the ones that anchor the existence and operations of water service providers, through the formal and informal rules. When looking at the root causes of informality, the market-based approach explains two scenarios, namely exit and exclusion (Vainio, 2012). The exit scenario explains an active decision by a person to gain income informally, while exclusion refers to a situation of non-existence of possibility to work in the formal economy, and therefore being compelled to embark on informal activities (Oviedo et al, 2009).

The market-based approach is adopted in this paper for explaining the nature of informality related to the water services providers, while the theory of Institutions is adopted for defining roles as based on formal and informal rules in the provision of water services.

Based on literature review and the context of this study, this paper adopted two main variables, namely institutions and exclusion. Institutions include formal and informal rules which define actors and their powers, and the nature of interactions, which in turn determine legality/legitimacy of the service provider. Exclusion has been adopted to explain the situation compelling service providers to have no possibility of working in the formal system. Rules and procedures are among the variables that are used in this paper to detail the factors related to exclusion. Application of those two variables is done in a combined way, due to their close relationship in operationalization.

MATERIALS AND METHODS

Methods

This paper uses non-public system of water services as a ground for exploring informality in provision of services. Its variables and indicators were based on the market-based approach to informality and the theory of Institutions. Since it was mainly qualitative, this study applied a case study strategy, given the need and room afforded for applying a combination of methods in studying informality in water services provision. Based on literature review and the research context, the study sampled one private water scheme located in Temeke Municipality (see Figure 1). The selection was justified by the reality that, the scheme is the one featuring informality more than the other schemes. The scheme was also the unit of analysis for the study. In the process of selecting the studied scheme, this study minimized subjectivity by applying some specific selection criteria, which were relevant to the research phenomenon.

Selection of respondents for the interviews was based on the relevant levels for management and operations of private water schemes in Tanzania, including the regulatory authority and service provision levels. Respondents at the regulatory authority level included representatives of the Basin water office, the city authority responsible for water supply and sanitation (DAWASA), and the local authority, namely Temeke Municipal Council, through the Municipal Water Engineer. Also, there was a representative of the local authority at ward level (Sandali Ward) included in the interviews. Based on their roles and mandates in water supply (as discussed in the literature review section) these four institutions had a key informant discussion each. Selection of participants for FGDs considered participation of both males and females, and was assisted by the Ward Executive Officer. There was one FGD of 11 participants that included four (4) representatives of sub-ward (Mtaa) water committees, three (3) grassroots leaders, and four (4) normal residents. This FGD was considered adequate for raising and discussing water provision and institutional issues in the service area.

Also, there was one in-depth interview with the owner and operator of the private water services in the study area. This interview was very crucial for the study, as its information had to be linked with the information from all the other respondents, to get the required important messages. Furthermore, there were 10 household interviews, based on information saturation logic. The house level interviews included only the houses that were connected to the private water service.

The researcher requested consent of the respondents to participate in the research, before embarking on the interview. This was also preceded by obtaining formal permission from the training institution (Ardhi University), and government authorities from the level of Regional Administrative Secretariat to the District Council, Municipal Council, Ward and Mtaa (sub-ward) levels, before reaching the individual respondents.

Since this study was qualitative, its results are not for statistical generalisation, but are meant for clear understanding of the phenomenon of study, that is informality in service provision, and potentially for replication in similar contexts in Tanzania and other developing countries.

Figure 1: Location of Dar es Salaam and its municipalities

Source: Ministry of Lands, Housing and Human Settlements Development (MLHHSD).

Research Design and Process

Based on Yin (2014:28), this study has included appropriate research questions for guiding the study towards reasonable findings, and has also identified data/variables and their respective methods for each of the research questions, in order to facilitate data collection.

In this research, the individual water scheme serves as the unit of analysis since it represents the most basic level at which the researcher can address the informality in service delivery. At this level, the various actors involved in the urban water supply process can be identified.

A case, in this context, is characterized by the organization managing water supply and its geographical service area, with the type of the scheme’s operating organization determining the nature of the case. Different categories (public, community-based, and private) are recognized within the city’s water supply (Kachenje, 2025). However, this study specifically examined the private scheme to highlight the instances of informality present in this category.

The framework was utilized to map the participants involved in urban water supply and their corresponding functions. The chosen variables were employed to generate and assess information from the designated water scheme.

Data analysis

In this research, a quick summary was predominantly used alongside data collection. This method facilitated the creation of a contact summary following the interviews. After the primary data collection, analysis primarily employed a thematic approach, in which data were categorized into specific codes/themes and patterns. Notable insights, learning experiences, and quotations related to each category were recorded and documented (Bhattacharjee, 2012) during this phase.

The data collection process produced a wide range of information, primarily qualitative, regarding the study’s subject matter. Prior to initiating the data collection process, the questions were organized according to different variables. Throughout the data analysis, these variables served as a framework for constructing explanations that encompassed the entire unit of analysis.

Consequently, the data analysis in this study was grounded in the conceptual framework and its practical application within the scheme. The variables, viewed as thematic areas, formed indicators that led to the development of sub-headings aimed at enhancing the analysis of the data and formulating explanations.

A structured approach was necessary to ensure that all pertinent data was thoroughly analyzed. Each respondent was cataloged for the entire scheme, followed by the identification and collection or organization of responses and information concerning the individual variables or issues from each respondent or source. Tables, figures, photographs, summaries, direct quotations and boxes were used for analysis and presentation of the information.  Emerging issues and patterns were thereby observed.

FINDINGS AND DISCUSSION

Findings of this study have revealed that informality in water services is mainly defined based on adherence to the relevant legal provisions and requirements, but linked to issues such as accountability, bureaucracy, as well as legitimacy and legality, as presented next to the section on the study area’s profile.

Profile of the Chisagwa studied case

The Chisagwa Water Scheme is an informal privately owned water scheme, operating in Temeke Municipality in Dar es Salaam, about 7 kilometres from the city centre. The service area of the scheme is in three neighboring Mtaa (sub-ward) areas, namely Kisiwani, Kimbunga and Kwa-Mpogo, all in Sandali Ward, within the same Municipality (see Figure 7.1). The scheme’s water supply services are through a piped network connected to a borehole within the project area.

Figure 7.1:  The Service area in Temeke Municipality

Source: Kachenje (2017).

As the case is with many areas served by informal service providers, this project area has never been served by any public system of water supply. However, one of its Mtaa areas (Kisiwani) is also served by a community-based water scheme. The Chisagwa Water Scheme’s role of service provision is well known in the project area. Apart from the households that live in the houses with direct water connection (Table 7.1), there are more unconnected households who get water from these connected houses.

Table 7.1: House connections in the Chisagwa water scheme

Source: Author, based on Kachenje (2017).

By early 1990s, the residents of this project area relied mainly on the Yombo valley (Figure 7.1) and shallow wells dug around there. However, in the mid-1990s, this source became highly polluted by industrial discharges, hence the residents had to abandon it. Due to this circumstance, they had to acquire water from a DAWASA network up to two kilometers away.

Part of this project area was served by a community-based water scheme that was started in a nearby region in 2010. The community-based program was already in place when the Chisagwa scheme began serving this area that same year. The project area’s residents really benefited from this endeavour in terms of better access to water supplies. The source and reserve tanks for the water scheme are shown in Plate 7.1.

Plate 7.1: Water source and reserve tank for the scheme

Source: Kachenje (2017).

The definition and nature of informal water supply

Based on the definition of informality adopted in this paper, the studied case of Chisagwa water scheme falls under the category of informal service provision, since the service offered is outside the formal system of service provision. The following sub-sections provide an account of informality in water supply based on the studied scheme.

Unregistered service provision

It was revealed that the service provider in the studied water scheme was not registered for the role he was performing, and operated without having the required licence for offering the services. That means his services were informal. For recognition as a formal service provider, any entity has to be registered with the authority for water and sanitation (DAWASA). The application process is done simultaneously with paying fee for the licence as prescribed by DAWASA from time to time (URT 2010).  While the water sector development strategy provided for authorized entities for providing services (URT 2006), the Water Supply and Sanitation Rules 2010 move a further step by requiring every supplier to possess a licence as a condition for offering such services. The rules also provide for penalty on defaulters, in terms of a fine amounting to three million Tanzanian Shillings (about $1,116) to any person who supplies water without having a licence (URT 2010).

Lacking registration means lacking legal recognition, a situation that implies insecurity among the informally operating entities. Similarly, by being unregistered, a water service provider is excluded from the list of recognized providers of the service, and becomes informal. It is common to find these unregistered suppliers in urban settlements, including the settlements that once had public system services, and the ones that had never have (Mapunda et al 2018; Kyessi et al 2019). Their state of being unregistered, though clearly known, does not seem to negatively affect their services, as there are some important actions taken informally that provide some assurance to the consumers. Water treatment is an example among these entities. However, if they were registered, probably the entities could be compelled to stick to prescribed prices, as opposed to what some of these private service providers are doing. Vainio (2012) suggested existence of a continuum between the formal and informal entities’ operations. With the service provider in the studied scheme possessing some initial documents, this continuum could be real in this case too.

Accountability void and informality

This study has revealed a void in accountability among the major water supply actors who had the mandate to manage service provision and providers, a situation that subsequently favoured informal operations. While the role of informal service providers in water supply is undeniable (Mapunda et al 2018; Kyessi et al 2019), the need for accountability in the service does not have to be overlooked. In practice the informal service provider in the study area was directly answerable to none of the authorities for water supply in the municipality. By the time this study was conducted, the local government (Temeke Municipal Council) had the responsibility for water services provision in areas that had not been reached by the authority for water and sanitation in the city (DAWASA). Despite this, the Municipal Water Engineer was hesitant to take action and manage private service providers, as quoted when asked about private service providers:

The private service providers should be regulated. Nonetheless, the right people to ask and clarify on that issue are DAWASA, as they are the ones with the authority. They have mandate on water supply.

Although DAWASA has the overall responsibility for water services in the city, a few years back it had a dilemma on managing the services by private providers. The dilemma resulted from the authority’s failure to cover the city population’s water demand, coupled with existence of informal service providers who were covering the gap. Under this scenario, a quick decision could be to tolerate the informal service providers who to a great extent contribute to alleviating the gap of water supply.

That situation implied a loophole for the service provider in the study area to operate with freedom like a formal service provider of water, so long as neither DAWASA nor the Temeke Municipal Council ask him anything about his services’ legality. As such, the actors with the mandate to manage water supply seemed to have closed their eyes on what was happening with the private service provision. To a great extent they disowned it, leaving the service provider to sell water and operate the way he liked. This situation brings in the dilemma of the informal economy, as to whether these informal service providers be left to expand their operations, or they should be regulated and become part of the formal system (Vainio, 2012). Although there could be some risks in allowing informal service providers operate freely (Sakijege, 2019), the role they play leaves the community with almost no alternative. Since the institutional framework is clear about roles and responsibilities (URT, 2006; URT, 2019), adherence to it could bring about a generally acceptable scenario in the service.

Exclusion through bureaucracies

This study has revealed that, presence of many bureaucratic procedures for registration of service providers may contribute to discouraging the aspiring service providers, and consequently make them operate informally. In Tanzania, the pprocessing of the licence of water supply (according to section 7 of EWURA Act 414) includes filling-in application forms; attaching the required documents; paying the required fees; advertising the application on the newspapers by EWURA; public hearing and results; recommendation by EWURA Management; and decision by EWURA Board (URT 2001).  The required documents to be attached include the water use permit that is issued by the local basin water office, and TIN number.

By simply listing them, the steps for registration of service providers look few in number and simple. But the challenge to the aspiring private service providers may be what each of those steps constitute, due to the fact that they involve many different actors and levels. As such there are different procedures, though interlinked. There are also fees accorded to some steps. The Basin Water Board is required by the Water Resources Management Act (2009) to establish these different levies and to periodically update them.  Private schemes pay up to TZS 250,000 (about $94) as application fees and an additional TZS 250,000 as water user fees, according to the fee schedule by the Basin Water Board.  The water user cost is paid once a year, however the permit must be renewed after five years, which means the borehole owners must reapply for the permit and pay the TZS 250,000 application charge. An unregistered private service provider may be persuaded to reconsider their decision to become a formal service provider by the combined weight of all these procedures and sub-steps, as well as the need to pay these fees.  Figure 7.4 summarizes the key steps towards becoming a formal service provider of water supply, incorporating the experience of the studied water scheme.

Key                                                    

 Required step but was not pursued by the private service provider

 Required and followed step

Figure 7.4: The process towards becoming a water service provider

Source: Author’s construct, based on field interviews and documents analysis.

There are numerous steps and actors in the process that must be followed, including numerous required connections with an input-output relationship between the actors. Even though there are four essential procedures, all connected in the sense that, obtaining a TIN number at TRA and a potable water licence at DAWASA are prerequisites for applying for a water supply licence from EWURA.  Additionally, the water use permit, which is regarded as a preliminary stage, must be completed at the Basin Water Office (BWO) before being sent to DAWASA and TRA.  The aspirant must complete a number of additional tasks before becoming eligible for the water use permit. These efforts result in technical studies that BWO requires to be included with the water use permit application. The tasks include pump testing, water analysis, and water surveys. Aside from application fees and additional annual expenses, the sum of those actors, activities, and procedures is linked to an unknown processing time for some of the paperwork.

Such a long and seemingly tiresome process, apart from being too bureaucratic, is likely to exclude instead of motivating private water providers to formalize their activities. In other words, this situation leaves a slim or no possibility for the private service providers to operate as formal (Vainio 2012). Also based on the market approach, the bureaucracies are filtering participants from the process. Given the advantages that service providers enjoy by operating informally, they are unlikely to bother much about being registered and transform to formal, since they have much flexibility and are not well bound by regulatory requirements. This is somehow supported by the observation that most informal service providers, especially in the global South, are reluctant participants pushed into such endeavours out of necessity (Taiwo, 2013). The bureaucracies can also be regarded in this category. Hodgson’s (2006) proposition that rules determine social interactions applies here in two ways, in the sense that the formal rules have lead to exclusion of the private service providers who were not able to adhere. But on the other hand, through informal rules the private service providers continued providing services,

Legitimacy and legality dilemma vis-à-vis informality in service provision

It was also revealed in the studied water scheme that legitimacy overpowered legality of the service provision activities. While each service provider is supposed to possess a licence of water supply, the Mtaa (sub-ward) leadership and the borehole owner for the Chisagwa Private scheme practiced a different opinion that, it was enough to have a water use permit to become a service provider.

The Mtaa leadership accepted the borehole owner as a service provider only when he presented to them the water use permit issued by the Wami Ruvu Basin Water Office (WRBWO) and TIN from the revenue authority (TRA). It is on that basis that the Chisagwa water scheme was observed operating, as commented by the borehole owner for the scheme:

If you go to the Mtaa Committee and tell them you want to provide water services to the community, they will ask you: How can we accept you if you have nothing to show us? Show us your certificates!  So, I presented my documents[2] to them, and after that I came to dig trenches for laying water pipes and started serving the community.

Although the borehole owner was not a formal provider of water services based on the Water and Sanitation Rules (URT 2010), he was accepted and regarded as a genuine service provider by the Mtaa (sub-ward) authorities. The basis for acceptance of the service provider was the presented water use permit, followed by the service he offered to the community, not a legal recognition of the service provider.

In reality, the water use permit is only meant to provide legal rights of using the water for the purpose indicated in the permit. The use of the water use permit to warrant a service provision role is merely a norm. According to Hodgson (2006), norms are among the informal rules, which can be stronger than formal rules and legal provisions. And this is the essence for legitimacy to reign above legality in the water services provision. This scenario is somehow similar to the one observed by Kyessi et al (2019), in which the service provider serving more than 60% of one settlement’s population was informal.

CONCLUSION AND RECOMMENDATIONS

This study aimed at discussing the essence of informality in provision of municipal services, using one case of a water private scheme in Dar es Salaam. Based on the findings and discussion in this paper, informality in water services provision is not only attributed to the gap of service delivery, but also factors including accountability, the nature of bureaucracy, as well as enforcement of the relevant rules. Again, it has revealed itself that in service provision legitimacy may weigh heavier that formal rules, since the priority to the community is availability of the service itself. Similarly, there is a relationship between bureaucratic procedures and exclusion of aspiring service providers that leads to informality in water provision. This suggests that in the market approach service providers could be excluded from being formal by unfriendly bureaucracies. However, there could be some minor context-specific variations in defining informality of service delivery. For instance in one context piped water supply could not be regarded as informal while in other contexts it could be the opposite.

Meanwhile, the studied case reveals relevance of applying the combination of Hodgson’s institutional theory and the market-based exclusion logic in explaining informality of municipal services provision through private schemes of water supply. As for the institutional theory, when formal rules were not adequately enforced in service provision, the water supply services took a form of social interaction outside the formal rules. The embedded informal rules dictated provision of water services, culminating into legitimacy of the services, implying informality as well. This is in line with Hodgson’s proposition on the role of institutions in structuring social interaction (Hodgson, 2006).

Also, the market-based exclusion logic was confirmed in the studied case through the unveiling of the lengthy and arguably cumbersome procedures for registration and recognition as a formal service provider. Such procedures tend to discourage private service providers from registering, and compel them to see informality as the remaining realistic option. The meeting point of the two theoretical components is that, while the social rules do structure social interactions (as per Hodgson’s proposition), they may also be an obstacle through the bureaucratic procedures for registering as formal service provider, and in that way they become an exclusion factor (Vainio, 2012).

Although there is always a dilemma in relation to the informal economy whether it should be allowed to expand and provide the required services, or it should be monitored and regulated, this study has brought more insights in relation to informality in service provision. The insights suggest that despite the positives and negatives of informal service provision, it could still be better managed by considering the other three factors discussed in this paper.

This paper recommends that, despite having not reached every citizen through the public water system, it should be possible to have a better management of informality in the delivery of this service, owing to its critical nature, and the role played by the informal service providers. This entails ensuring improved enforcement of rules, and establishing one-stop centre for registration of aspiring service providers, so as to avoid their possible exclusion.

Recently the local city water authority (DAWASA) has invited private service providers to register and work with the authority in providing water services to some specific localities. It may be interesting to research on how this initiative influences the informal service providers’ transformation into formal.

Ethical considerations

Apart from formally requested permission through letters written to the various institutions, the author sought for the respondents’ consent to participate in the research.

Data availability

The data from which this paper was developed is available mainly in the Ardhi University repository www.aru.ac.tz

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FOOTNOTES

[1] The Water Supply and Sanitation Act of 2019 transformed these COWSOs into CBWSOs, i.e. Community-Based Water Supply Organizations

[2] The documents are the water use permit with terms & conditions, the water analysis results sheet and the TIN.