At the other end of the spectrum, small-scale service providers (SSIPs) are a much-maligned element of the private sector. Often owing to their informality, it is easy for municipalities to ignore and marginalise them in service delivery reforms. Yet many municipalities will find that some of their extension staff understand and have the skill to engage with rag- pickers, poor teenagers selling water by the bucket, or handcart vendors, while some of the engineering staff may be able and willing to engage with water tanker drivers or vacuum tanker drivers. Whether or not these skills are present, it is necessary for municipalities to consider how they will engage with formal and informal SSIPs. Knowledge about informal activities should be fed back and absorbed by decision-makers.
Unlike large-scale formal private sector operators, small-scale service providers have only limited capacity and they may need to receive capacity building training before they are able to participate meaningfully in partnership arrangements. Municipal understanding of this skills gap will enable more effective engagement with this sector, and thus an opportunity to build on the activities and services that SSIPs provide.