 | Exploring opportunities for domestic-local investment in water and sanitation services. |
| Expanded Title: | The Department of Water Affairs (DWA) is custodian of water resources and responsible for coordinating investments in water infrastructure. There are about 250 water schemes in South Africa, that the department is responsible for their management. Other water infrastructure schemes that the state has responsibility over comprised of those that are transboundary in nature, including the Lesotho Highland Water Project (LHWP). It’s estimated that the current replacement value for the water infrastructure is about R139 billion. It’s estimated that South Africa requires at least R1.4 billion investments per annum
to maintain the current water infrastructure. This funding challenge has exacerbated the water management situation in the country.
This study sought to develop understanding on the perceived challenges and constraints faced by the private sector, which prevents them from harnessing the opportunities of investing in the water and sanitation sector in South Africa. This was based on the premise that by unpacking these perceived challenges, a clear picture of the investment opportunities in the sector might be unveiled to make a business case for investments in the sector.
The main outcome of this study reflects the fact that private sector involvement in the financing of water infrastructure is still quite poor, with the public sector still bearing the large cost of infrastructure financing. In cases where private sector is involved, it is on the basis of financing large infrastructure programs that have been guaranteed by government. The lack of clarity in the regulatory framework in the financing of water infrastructure has exacerbated the perception of risk by the private sector and resulting in their participation has been quite limited. Financial status of local Municipalities has also hindered them from effectively using market mechanisms for fundraising for their infrastructure programs, because of poor balance sheets |
| Date Published: | 01/08/2017 |
| Document Type: | Research Report |
| Document Subjects: | Drinking water - Water treatment, Sanitation - Waterborne sanitation, R & D - Research capacity |
| Document Format: | Report |
| Document File Type: | pdf |
| Research Report Type: | Technical |
| WRC Report No: | TT 725/17 |
| ISBN No: | 978-1-4312-0906-4 |
| Authors: | Amis Mao; Zinyengere N; Cassim A |
| Project No: | K5/2484 |
| Originator: | WRC |
| Organizations: | African Centre for a Green Economy |
| Document Size: | 1 622 KB |
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