4.8 Water (Supply)

A. Overall Contribution to Economy

Water supply sources are plentiful in Tanzania, although difficulties often arise in transporting water from source to user.¹ Also, extensive government subsidies in the past make it difficult to calculate the economic potential of domestically supplied water.² Water supply is reserved for the public sector, according to the Investment Promotion Policy, however, the informal sector is also involved in water supply. The primary suppliers of water are government, through the National Urban Water Authority and other local water authorities, and private entrepreneurs selling water in irregular quantities, especially in urban areas. Export of water has not yet been considered. The major objective of the sector is "to provide adequate, clean and safe water by the year 2002."

1. NEAP, page 8.
2. The Rolling Plan and Forward Budget for 1994/95-1996/97 did not calculate economic potential of the sector, but rather emphasized need for universal water supply and rated the government's performance in this way.