How important is improved water infrastructure to microenterprises? Evidence from Uganda

Despite the proliferation of micro and small enterprises (MSEs) in sub-Saharan Africa (SSA), most have difficulty surviving, let alone expanding their operations. Using empirical evidence from two Ugandan towns we explore the impact of investments in water supply infrastructure on MSEs. Our findings suggest that, despite perceptions among firm owners that water supply is a binding constraint, economic benefits to MSEs of supply improvements may be limited. Current water infrastructure planning strategies may be based on erroneous assumptions about the relative demand for improved water supply by firms and households, as well as the feasibility of cross-subsidies between groups of users. © 2001 Elsevier Science Ltd. All rights reserved.

Duke Scholars

Author Jeffrey R. Vincent Environmental Sciences and Policy