IMF-Backed Water Tariff Reforms Put Affordability and Investment in Focus
Alex Fefegula Harding Sierra Leone faces pressure to reform water pricing as Guma Valley Water Company’s managing director argues that low tariffs are discouraging investment, while international financial assessments warn that existing charges remain insufficient to cover operating costs.
Ing. Mariwan Kallon made the case during an appearance on AYV’s Wake Up Sierra Leone, saying the company charges less than six U.S. cents for water, compared with approximately $1 in some other West African countries.
He argued that the low rates make it difficult to attract investors who expect financial returns from their investments.
The debate extends beyond Guma’s ability to attract private capital. A 2026 International Monetary Fund assessment of Sierra Leone’s economy identified inadequate water tariffs and financial constraints as obstacles to maintaining existing services and expanding access.
The IMF report said Guma’s last tariff adjustment was approved in 2021, but the company continued operating below cost-recovery levels. It also identified high levels of water losses as an additional challenge to the sector’s financial sustainability.
Under commitments outlined in the report, the government plans to develop a multi-year water tariff framework and implement an adjustment aligned with that methodology by the end of 2027.
The proposed framework is expected to include periodic tariff reviews, efficiency targets and measures to account for the effects of price changes on vulnerable households.
Guma had previously sought higher charges to meet operating and maintenance expenses and contribute to infrastructure projects. In an August 2021 statement, the company said it relied on water revenue to finance its daily operations and did not receive funding from the government’s Consolidated Fund.
Kallon’s comments therefore come amid a wider policy debate over how to make water services financially sustainable without making access unaffordable for households.
Although he cited a significant difference between Sierra Leone’s water charges and those in other countries, the exact regional comparison could not be independently verified. The statement provided did not identify the countries, tariff categories or measurement units used.
The challenge for policymakers will be to balance the need for investment and reliable water services with consumer protection as the country considers further tariff reforms.