A multiyear hydroeconomic study, completed for the Western Cape Water Supply System (WCWSS), confirms the economic benefits of reliable, climate-resilient water systems across cities in South Africa.

South African cities are vulnerable to climate change impact, which is threatening the reliability of water systems, competitiveness, quality of life and economic development prospects.

“For a water-stressed country such as South Africa, understanding the close relations between water and the economy is key for sustained economic growth. This has been clearly illustrated by the hydroeconomic study,” said World Bank Southern Africa operations manager Asmeen Khan, citing the nearly R15-billion direct economic impact of the drought on the Western Cape economy, about 3.4% of provincial gross domestic product.

The WCWSS provides water to businesses and more than four-million people in Cape Town, as well as to agriculture and businesses in Stellenbosch, Drakenstein, Swartland and Saldanha Bay municipalities.

The study demonstrated the economic benefits of augmentation and a reliable water system, served as a blueprint for building a more climate-resilient water system and economy, and highlighted the crucial role of stakeholder collaboration and the need to integrate water variables into city planning.

This can be achieved through collaborative governance by South Africa’s national, provincial and local governments, water users and key stakeholders, according to the study, which was published at the end of June.

“The preparation of hydroeconomic studies for water supply systems supports the integration of water resources and the reliance of all water users on these resources, into economic planning,” Khan commented.

National Treasury Cities Support Programme manager Sibongile Mazibuko said that the outcomes provide an important resource for cities to build resilience at local level.

According to the study’s findings, the Western Cape’s planned augmentation programme must urgently be implemented to mitigate the risk of economic loss and to create economic value and that the operation and financing of the alternatives, such as aquifers, water reuse, and desalination, should consider the economic benefit beyond direct supply and the increase of assurance for the entire WCWSS.

It also found that augmentation alone is not necessarily sufficient to catalyse the full economic development benefits; that confidence in the system and trust in the process are also needed for investment; and that a deliberate pro-poor focus on water access and job creation is needed.

“The hydroeconomic study’s results have enabled us to better understand the financial trade-offs in the city’s water resources planning, as well as identify priority actions for water augmentation, including the removal of alien and invasive vegetation,” added City of Cape Town bulk services director Michael Killick.