South African water company Nafasi Water Technologies has secured undisclosed investment from the Norwegian Fund For Developing Countries (Norfund), complementing a follow-on investment by existing shareholder E Squared Investments.

The investments will support the development of a sustainable platform for water infrastructure projects focused on catchment rehabilitation in mining-impacted regions, the scaling of water reuse and the company’s advancement of technologies for complex water reclamation and waste beneficiation.

These initiatives will expand advanced water treatment capabilities, improve water security, address the integrated environmental rehabilitation of mining-impacted water catchments and create skilled employment opportunities in Southern Africa.

The historical lack of investment in Africa’s water sector has resulted in an infrastructure backlog that is now impacting service provision and development planning, a challenge that will require private and public institutions working closely together to solve.

“The extent of the backlog in water infrastructure investment, coupled with deteriorating catchment resilience – owing to climate and pollution factors – has accelerated water insecurity for many communities. We need the appropriate technologies, bankable projects and skills at the local level,” said Nafasi Water CEO Suzie Nkambule.

Nafasi Water develops, finances, builds and operates water treatment facilities for industrial and public clients, including large-scale seawater desalination projects such as the Erongo desalination project in Namibia.

“We have successfully deployed project-financed solutions for long-running, mining-impacted water rehabilitation projects. Consequently, it was a natural progression for Nafasi Water to move into the public-private partnership (PPP) space, and we are now actively engaged in PPP bids for wastewater treatment and reuse,” she said.

As part of their technology stack, Nafasi Water is able to recover useful chemicals from sludge and effluent left over from these treatment processes, which unlocks a novel circular economy that spans from water treatment to the production of valuable chemicals from waste products.

“We intend to continue aggressively developing and maturing technologies that can lower the cost of proactive treatment and reuse, in order to stop the problem of uncontrolled decant at its source,” Nkambule added.

The equity investments by Norfund and E Squared will enable Nafasi Water to expand its work to protect the environment, while creating new jobs in regions such as Mpumalanga.

“This is where investment in alternative sectors is needed, as the region grapples with the impending closures of large coal-fired power plants.

“By preventing polluted water from entering rivers and communities, Nafasi Water is addressing one of South Africa’s most pressing environmental challenges while creating jobs by building commercially viable solutions for the future. We are pleased to partner with a strong local team that combines technical capability with a clear long-term vision,” said Norfund green infrastructure senior VP Carl Johan Wahlund.

The expansion is expected to generate high-value technical jobs in Southern Africa and help build local expertise in advanced water treatment operations. The company has already strengthened its engineering and project delivery capacity as it enters a capital-intensive build phase.

“Nafasi’s management team has a proven track record in delivering complex projects, and we believe it is well-positioned to scale effectively and capture new opportunities in an interesting market. We are also happy to support a technology leader that also develops local expertise,” said Wahlund.

E Squared Investments CEO Gladwyn Leeuw said that water security was one of the defining challenges for Southern Africa and that addressing it would require innovative technologies, strong local expertise and catalytic partnerships between the public and private sectors.

“As an existing shareholder in Nafasi Water, we have seen first-hand the strength of the company’s technical capabilities and its commitment to tackling complex water challenges, including acid mine drainage and wastewater reuse,” he said.

“Our follow-on investment reflects our confidence in the management team and in Nafasi Water’s ability to deliver complex infrastructure projects that strengthen water resilience in the region.

“We are also pleased to partner with Norfund in supporting Nafasi’s next phase of growth as the company expands its project pipeline and advances technologies that contribute to a more sustainable and secure water future across Southern Africa,” Leeuw concluded.