To establish economic viability of District Metered Areas: A case study of DAWASA’s Kinondoni Service Area, Tanzania

Abstract

District Metered Area (DMA) systems promoted as a strategy for reducing Non-Revenue Water (NRW) and improving operational efficiency in urban water supply networks, yet their financial viability in Sub-Saharan Africa remains uncertain. This study assessed the economic feasibility of implementing 13 DMAs in Kinondoni Service Area under the Dar es Salaam Water Supply and Sewerage Authority (DAWASA) between 2023 and 2025. Using a cost benefit framework that combined Capital Expenditure (CapEx), Operational Expenditure (OpEx), and Net Revenue Gain (NRG), four indicators, Return on Investment (ROI), Cost-Benefit Ratio (CBR), Payback Period (PP), and Financial Sustainability Index (FSI) applied. Results showed poor short-term viability (ROI −96.5%, CBR 0.035, PP 23.1 years, FSI −0.797), driven by high initial costs and modest revenue gains. Scenario analysis identified NRG as the most decisive factor for financial recovery. The study concludes that DMA investments are not currently financially sustainable, but phased implementation in high-NRW zones, supported by tariff reform and donor cost sharing, could improve long-term economic viability. These findings provide important guidance for DAWASA, regulators, and development partners in designing policies and financing models for sustainable water supply management.