Briefing Note - April 2025

Written By Kamuhanda Method

DMDO Business Plan Update

1       Why We Are Sharing This

This note provides a snapshot of how DMDO’s strategy is evolving as we work toward our 2030 goal of becoming a fully self-sustaining organisation – able to cover our costs and reinvest in clean water infrastructure without relying on external funding.

2       Strategic Focus: Lindi District

We will focus on the providing WASH+ to Lindi District:

 By consolidating our operations within a single district encompassing five CBWSOs, we are able to leverage established institutional relationships, exploit the efficiencies of geographic clustering and coordinate activities under a unified local governance structure.

3       A Strategic Shift

Previously, DMDO’s work was tied to individual villages: revenue from clean water came only from locations where infrastructure had been installed. This created an implicit pressure to expand quickly to reach break-even.

Over the last couple of years, CBWSOs have consolidated, so each organisation spans multiple villages. Under the proposed joint venture, DMDO will receive 50% of total CBWSO income – not just from areas where we’ve already worked. This shift means:

·       A more stable income base for DMDO;

·       Better alignment of incentives, as increased consumption across the whole CBWSO benefits everyone;

·       Space to go deep in each partnership, improving quality and performance over time.

It’s the difference between scattering efforts widely and tending an integrated system, where shared knowledge and infrastructure improvements can lift the standard of service for all. Anchoring within a CBWSO allows DMDO to invest steadily, with gains rippling outward through the network.

4       Gateways to Implementation

For this strategy to be implemented, we need to sign joint venture agreements with the CBWSOs according to the draft terms that we have presented to the Government and its agencies.

Next week, we travel to Dodoma for discussions with RUWASA and senior government officials to finalise these arrangements.

5       What We Are Doing Now

To prepare a viable, district-wide plan, we are carrying out three surveys in May:

  • Community Surveys: These explore household water consumption, sanitation behaviour, and demand. Recent Phase 2 sanitation findings showed uptake challenges, reinforcing the need to understand behavioural barriers.

  • CBWSO Due Diligence: In addition to assessing capacity and governance, this identifies areas where DMDO can provide targeted training and tools to improve service delivery and accountability.

  • Technical Assessments: These map the capital investment required to bring safe, affordable water to all communities in each CBWSO area by 2030.

Initial results will be available in early June, with a full business plan to follow later that month.

6       The Financial Model: Covering Costs and Reinvesting Surplus

DMDO’s operating costs are approximately USD 200,000 per year.

These can be covered if average water consumption in all five CBWSOs in Lindi District averages 3 litres per person per day at TZS 5 per litre. Our target is 8 litres per person per day, which would provide sufficient surplus to reinvest in expanding infrastructure.

As income grows faster than operating costs (which should scale more slowly), this creates a compounding effect: surplus grows, reinvestment increases and the cycle accelerates. Over time, more infrastructure should mean more water access, more income and stronger service delivery.

The graph below gives a sense of this:

7       Investment

We will refine this in time but the following reflects our current thinking around capital investment.  We are funded till mid-2026 and thereafter will need to raise about $5m in donor investment.

Donors will benefit from the Enhanced Impact, described more fully on our website:

  • 100% to Infrastructure;

  • 2-for-1 Impact; and

  • Self-Sufficiency by 2030.

8       Measuring What Matters: Water Access and Poverty Reduction

As we deepen our work in Lindi, we are developing a small set of outcome metrics to track real-world change, like using tools such as the Poverty Probability Index to link WASH+ more directly with poverty reduction.

Our aim is to demonstrate that a $5 million investment can generate measurable, long-term economic value for a population of 250,000. We are currently refining an “impact multiple” that expresses how each $1 invested translates into local value over time.

9       Conclusion

This update reflects DMDO’s evolving 2030 strategy; shifting from broad geographic reach to deeper, more integrated partnerships within Lindi District.

We will share further findings and a detailed business plan in June.

Please reach out if you would like to access the full technical appendices or speak to members of our team.

 

Kamuhanda Method