Inadequate access to water and sanitation presents investment opportunities

18th June 2021

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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The Covid-19 pandemic has reinforced the need to invest in South Africa’s water infrastructure, highlighting the lack of secure water supply and sanitation, particularly in rural communities.

South Africa, naturally a water-scarce country, faces uneven rainfall distribution, high temperatures and very low rainfall, leaving water resources increasingly under pressure.

“South Africa’s water resources remain at risk as the bulk water infrastructure is struggling to cope, as more people migrate from rural areas to urban areas,” says global strategy consulting and market intelligence firm Frost & Sullivan Africa consultant Yaa Agyare-Dwomoh.

“This situation is further driven by informal settlements on private land and lack of bulk infrastructure, as well as poor and problematic maintenance of the infrastructure.”

Further, South Africa loses a significant amount of water every year, owing to stolen water and water lost through leaks or faulty metering, with about 41% of the country’s potable water being lost each year.

Water and Sanitation Minister Lindiwe Sisulu notes that, as at March, R12.6-billion was lost through nonpayment to water boards by municipalities.

“In a recent study, we discovered that about 41% of our municipal water is nonrevenue, which means water is not being billed or paid for, and we are losing the value of around R9.9-billion down the drain, because of physical losses and leaks from server connections, municipalities are not paying their debt or municipalities are not collecting from our users,” she said during her Budget Vote in May.

However, the Department of Water and Sanitation has set a goal to reduce losses to 10% or lower, to bring it in line with the global best practice, Agyare-Dwomoh highlights.

“By attempting to reduce yearly water losses to just 26%, the country would require an investment of R676-million, which would translate to potential water savings of R6-billion a year,” she continues.

Further, despite an increase in households with access to sanitation from 49% in 1996 to 83% in 2018, some 14-million South Africans are currently living without access to safe sanitation and about 2.8-million, or 17% of households, do not have access to safe and dignified sanitation.

“This, however, translates into a market potential of about R41.4-billion, with the City of Cape Town having the largest investment potential for nonsewered sanitation systems, at almost R2-billion in capital investment,” Agyare-Dwomoh comments.

“Investing in new water and sanitation infrastructure introduces additional opportunities that could help the reduction of multidimensional poverty and inequality.”

These investment opportunities in conjunction with the national government’s willingness to improve sanitation are intended to create many jobs, stimulating economic recovery and ensuring water security well into the future.

Meanwhile, the City of Johannesburg, which has been experiencing water restrictions and cuts, needs R2-billion a year to maintain or replace its water networks and sewer system, adds Royal HaskoningDHV smart asset management expert Sheilla de Carvalho.

However, with the economy under massive pressure, new approaches are required to use existing assets more effectively and efficiently to achieve service delivery, contain costs and avoid dams running empty.

De Carvalho suggests a data-driven approach to optimise water distribution in the city and across South Africa.

“This could be the country’s catalyst for digital transformation – the point when municipalities start using technology and data to improve service delivery,” she points out.

In addition, a full audit of South African’s water infrastructure will help authorities gain a full understanding of its condition and shortcomings, as well as highlight ways to remedy these.

“A data-driven approach informed by building information management will help strategic role-players in the sector to plan, design, build and manage water infrastructure more effectively, to deliver clean efficient water services to all South Africans.”

A holistic understanding of water systems will enable infrastructure managers to enhance and optimise asset management processes and techniques, leading to better decision-making.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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