Assessing farmers’ ability to pay the full cost of operation and maintenance in small-scale irrigation schemes: insights from Tanzania and Mozambique

Operation and maintenance (O&M) costs and farmer fee contributions are critical in smallholder irrigation schemes. Using five schemes in Tanzania and Mozambique, this paper estimates full O&M costs, examines fee arrangements and revenue collection, assesses implications of charging cultivated versus controlled area, and compares required contributions with gross margins from selected crops. Actual collections fall below estimated full O&M costs in all schemes, but the size and causes of the financing gap vary. Full O&M recovery is useful as a planning benchmark, while sustainable maintenance requires stronger collection systems, transparent fund management, and clear cost-sharing arrangements.