Challenges and Prospects Confronting Commercial Water Production and Distribution Industry: A Case Study of the Cape Coast Metropolis

This research was conducted to uncover the motivational factors that cause individuals to invest in SMEs in the commercial water production and distribution sector in Ghana, as well as identify the challenges and prospects of the industry, and selecting Cape Coast Metropolis as the case study. Descriptive survey was adopted as the main research design. Drinking water (sachet and bottled) distributors and producers located within the Cape Coast Metropolis were targeted as the population of the study with an estimated population of 140 and 25 distributors and producers respectively. Stratified random sampling design was used to sample 103 and 24 pure water distributors and producers respectively and questionnaires used as the research instrument. A 100percent response rate was recorded. The study revealed that most of the SME operators in the industry are motivated by the drives for income generation and job creation. Erratic power supply, high utility charges, high cost of financial credit from financial institutions, poor infrastructure, and limited support from the central government are challenges faced by the industry. Given the current hikes in prices of goods and services in Ghana, the respondents declared that the future of the commercial water industry is not promising hence calling for political will and timely intervention by appropriate stakeholders.