Evaluation of the effectiveness of the National Benchmarking Initiative (NBI) in improving the productivity of water services authorities in South Africa

Abstract

Water shortages, public demonstrations and lack of service delivery have plagued many South African water services authorities (WSAs) for a number of years. From 2004–2007 the National Benchmarking Initiative (NBI) was implemented to improve the performance, efficiency and sustainability of WSAs. The current study demonstrates the use of data envelopment analysis (DEA) and the Malmquist productivity index (MPI) for the assessment of the effectiveness of the NBI in achieving these goals. Furthermore, the MPI is used to assess the impact that the termination of the NBI had on the efficiency of the WSAs in the years that followed. In conclusion, the MPI is identified as a valuable tool for regulators and policy makers that wish to assess the performance of their benchmarking initiatives.

Keywords: water service provision, productivity, benchmarking, Malmquist index, DEA