The verdict in three sentences
A water utility with 60,000 customers in Lomé that loses 30% of its revenue to unpaid bills and commercial losses lets more than 1 billion FCFA (about 1.5 million EUR) slip away every year. Custom customer billing software costs between 25,000,000 and 70,000,000 FCFA (38,000 to 107,000 EUR) and is deployed in 6 to 10 months. Combined with mobile meter reading, prepaid meters and mobile money payments, it moves the collection rate from 70% toward 85 to 90%, paying the project back within months.
Where the lost 30% of revenue goes
Before pricing software, you need to know where the money leaks. Across West African operators with 20,000 to 150,000 connections, commercial losses follow a very consistent pattern. Donors such as the World Bank and AFD track the same split through non-revenue water (NRW) and collection efficiency indicators. Software does not fix physical leaks, but it acts directly on the commercial share of NRW.
| Loss source | Share of commercial losses | Typical symptom | Software lever |
|---|---|---|---|
| Estimated or wrong readings | 25 to 35% | Flat-rate bills disputed at the counter | Mobile reading with meter photo and GPS |
| Arrears over 90 days | 30 to 40% | Debts never chased | Automated SMS reminders, scheduled disconnections |
| Unbilled connections | 10 to 20% | Customers missing from the database | GIS reconciliation and census campaigns |
| Stuck or tampered meters | 10 to 15% | Zero consumption for 3 months | Consumption anomaly alerts |
| Tariff errors | 5 to 10% | Wrong social bracket applied | Configurable, audited tariff grid |
| Unreconciled payments | 3 to 8% | Counter payments not allocated | Automatic mobile money and cash reconciliation |
The lesson for a commercial director: the first two rows alone account for more than half of the losses. A well-scoped project starts with meter reading and collections, not with dashboards.
What water billing software costs in 2026
Budget depends mainly on the size of the customer base, the number of modules and the state of the existing customer file. These are 2026 ranges for custom development in Lomé, hosted locally or in a regional cloud.
| Module | 2026 budget (FCFA) | Scope |
|---|---|---|
| Customer and contract master data | 4,000,000 - 9,000,000 | Records, connections, tariffs, consumption history |
| Mobile meter reading (offline Android) | 5,000,000 - 12,000,000 | Rounds, meter photo, GPS, 3G sync |
| Billing engine and tariff brackets | 6,000,000 - 15,000,000 | Monthly or bimonthly billing, social bracket, penalties |
| Mobile payment (T-Money, Flooz, cards) | 3,000,000 - 8,000,000 | Payment by customer reference, auto reconciliation |
| Prepaid meters (STS standard) | 4,000,000 - 14,000,000 | Token sales, top-up points, credit tracking |
| Collections and reminders | 2,000,000 - 6,000,000 | SMS, disconnection orders, payment plans |
| Management and donor reporting | 1,000,000 - 6,000,000 | NRW, collection rate, IBNET indicators |
| Total project | 25,000,000 - 70,000,000 | Depending on base size and modules |
Recurring costs come on top: hosting at 150,000 to 400,000 FCFA a month, ongoing maintenance at 12 to 18% of the initial budget per year, SMS at around 10 to 15 FCFA each. Reading smartphones cost 90,000 to 150,000 FCFA each, and a prepaid meter 45,000 to 90,000 FCFA, hardware outside the software budget.
A realistic timeline: 6 to 10 months
The timeline is rarely driven by code. It depends on the quality of migrated data and on how fast meter readers and counter staff are trained.
| Phase | Duration | Deliverable |
|---|---|---|
| Scoping and data migration | 4 to 6 weeks | Cleaned, de-duplicated customer file |
| Master data and billing engine | 8 to 12 weeks | First bill computed on real data |
| Mobile reading and pilot in one sector | 6 to 8 weeks | 5,000 meters read with photos |
| Mobile payment and collections | 4 to 6 weeks | Reference payments and SMS reminders live |
| Parallel billing | 2 cycles | Variances explained before cutover |
| Prepaid meters (option) | 6 to 10 weeks | Token sales in a first neighborhood |
Mini case study
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Mr. Agbéko, commercial director of a 60,000-customer utility in Lomé, bills an average of 6,500 FCFA per customer per month, or 4,680,000,000 FCFA a year. At a 70% collection rate, he collects 3,276,000,000 FCFA. The selected project costs 48,000,000 FCFA, plus 40 smartphones at 120,000 FCFA (4,800,000 FCFA) and 6,000,000 FCFA of annual running costs, about 58,800,000 FCFA (90,000 EUR) in year one. Gaining just 4 collection points recovers 187,200,000 FCFA, three times the project cost. The realistic 82% target within 12 months represents 561,600,000 FCFA (about 856,000 EUR) of additional revenue (2026 estimate).
FAQ
Should we buy an international package or build custom software?
Billing packages built for large utilities often exceed 300,000,000 FCFA in licenses and integration, with features designed for Europe. Custom software at 25 to 70 million FCFA natively handles mobile money, social tariffs and offline reading. Above 150,000 customers, a comparative study is worth commissioning.
Does mobile reading work without network coverage?
Yes, the app stores the index, photo and GPS position offline, then syncs as soon as a 3G connection is available. A reader handles 120 to 180 meters a day versus 60 to 80 with a paper book. Bill disputes typically drop by 40 to 60%.
Are prepaid meters profitable?
On equipped customers, collection approaches 100% because water is paid before it is used. With meters at 45,000 to 90,000 FCFA, start with government offices, businesses and repeat defaulters. A phased rollout to 5 to 10% of the base is a good starting point.
How much does mobile money collection cost?
Fees are negotiated with operators, roughly 1 to 1.5% of the amount for a large biller. That is cheaper than a physical counter, which often costs 300 to 500 FCFA per transaction in staff and cash transport. Automatic reconciliation also eliminates unallocated payments.
Is customer data protected?
Togo regulates personal data under Law No. 2019-014, supervised by the IPDCP authority. The software must include role-based access, change logging and controlled hosting. Budget 1 to 3% of the project for a compliance audit.
Let's scope your project. Send us your customer base size, priority modules (reading, billing, prepaid, collections) and timeline: we will price a scope between 25 and 70 million FCFA with a 6 to 10 month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
