Many of the problems in the drinking water supply and sanitation sector are related to the improper management of water resources. Non-revenue water (NRW), is one of the greatest challenges for water utilities in Africa and other developing countries. Typical values of NRW for developing countries ranges between 30 and 70%, which is unacceptable.
Water and sewerage utilities in many Africa and South Asian cities are currently undergoing significant reform based on the principles of cost recovery, commercialization and demand management. These utilities are mandated to provide sustainable services to all consumers residing in the city, including the poor at affordable rates. Each must adopt effective management and business strategies to meet the challenge. In particular, the water utilities must not only be effective but also efficient in service delivery to ensure affordability of services, wide service coverage and environmental sustainability. The level of NRW is one of the greatest measures of environmental and financial efficiency.