Institutional and Governance Drivers of Non-Revenue Water: Implications for Sustainable Water Management in Teyateyaneng, Lesotho

Non-Revenue Water (NRW) remains a critical challenge to sustainable water supply in developing countries such as Lesotho. This study examines the governance and institutional challenges that contribute to NRW in Teyateyaneng, Berea District, focusing on the Molemane electoral division, using a mixed-methods approach grounded in the Capital Approach Framework (CAF). Baseline performance metrics revealed stark institutional barriers: political capital received the fewest positive responses (10%), followed by social capital (20%), financial capital (30%), and human capital (40%). To account for the multidimensionality of these governance variables, Principal Component Analysis (PCA) was applied, revealing that NRW dynamics are driven by two principal dimensions rather than four isolated capitals. The first component is dominated by institutional capacity, with heavy weightings on Human Capital (0.910) and Political Capital (0.832), highlighting that technical expertise and structured governance are critical for reducing water loss. The second component underscores stakeholder engagement, driven by Social Capital (0.750) but counterbalanced by financial constraints (Financial Capital, -0.550), demonstrating that community participation significantly influences water management outcomes but is actively restricted by resource imbalances. These findings confirm that NRW is fundamentally a governance challenge driven by institutional inefficiencies and weak community engagement rather than a purely technical issue. Strategic interventions are proposed, including strengthening policy frameworks, enhancing community participation, improving financial sustainability, and adopting integrated monitoring systems. This study contributes to the limited literature on the governance dimensions of NRW in Southern Africa and offers a governance-based policy framework to improve utility performance.