A proposal by the water utility to hike water tariffs for industrial and urban users has caused an uproar among manufacturers, with many saying the move would increase the cost of doing business and slow growth if not revised.

The Energy Water and Sanitation Authority (Ewsa), plans to increase urban water tariffs, including water for industrial use, by 49 per cent from Rwf593 per cubic meter to Rwf885 per cubic meter exclusive of value added tax, according to a proposal submitted to the Rwanda Utilities Regulatory Authority (Rura).

The proposed tariffs were submitted to Rura for review last month, according to manufacturers. 

The move has, however, angered manufacturers who are now calling on Rura to ignore the proposal. 

"We should always be consulted on matters concerning the sector, especially on issues that might hurt our performance,” Anne Rwigara, the Rwanda Manufacturers Association secretary general, said.

"We are engaging Rura because the manufacturing sector is the biggest stakeholder when it comes the utilisation of water, electricity, transport and ICT facilities. Therefore, any changes in tariffs can greatly impact the sector, affecting production and consumer demand, as well as the growth of the sector in general,” Rwigara said. 

Ivan Twagirashema, the Chamber of Industry president, said they are aware of the issue, noting that it is being handled by the association of manufacturers and the Ministry of Trade and Industry. 

Dharmarajan Hariharan, the Sulfo Industries managing director, said though the tariffs have not been approved, they are concerned that, if they are passed, ‘the already struggling’ industry will be greatly hurt.

Regis Gatarayiha, the Rwanda Utilities Regulatory Authority Director General, promised to consult all stakeholders to find ways of resolving the matter.

The industrial sector contributed 15 per cent to the national economy during the first quarter of 2014, according to the GDP statistics released by the National Institute of Statistics Rwanda recently.

 Efforts to reach Ewsa were not fruitful as none of the officials answered their calls. 

The Ewsa urban water end user tariff review seeks to ensure full cost recovery of water service and facilitate the  restructuring of the utility as it prepares to operate on a commercial basis.