SA water crisis drains economic gains

South Africa is facing a critical water crisis, with clean and accessible water becoming a constitutional right that is increasingly difficult to uphold. According to the World Economic Forum, access to water is considered the third biggest risk of doing business in the country. This has raised concerns among experts and stakeholders about the future of South Africa's water stability and the challenges and opportunities that lie ahead. Gundo Maswime, Civil Engineer Lecturer at the University of Cape Town, and Kasief Isaacs, Head of Private Markets at Mergence Investment Managers, delved into the complexities of the water crisis during a recent CNBC Africa interview. Kasief Isaacs highlighted that South Africa is the 30th driest country globally, exacerbating the challenge of water scarcity. Poor water management by municipalities has led to significant losses in water supply between the bulk water metering point and the final consumer, further straining the country's water resources. Climate change and aging infrastructure have also contributed to the crisis. Maswime emphasized the need for investment in upgrading and extending water infrastructure to meet the growing demands of both existing and new consumers. He stressed the importance of leveraging innovative technologies and learning from other countries to address the water challenges effectively. Isaacs raised concerns about the disjointed nature of municipal water management and the slow progress in implementing private-public partnerships (PPPs) to improve water infrastructure. While there have been some successes in PPPs, such as the Renewable Energy Procurement Programme, Isaacs called for a more coordinated approach involving all key stakeholders to mobilize the necessary funding for critical water infrastructure projects. The involvement of the private sector, as demonstrated by Mergence Investment Managers' initiatives, shows promise in delivering innovative solutions and sharing risks with municipalities. Maswime highlighted the role of universities in conducting research and developing innovative solutions to bridge the gap between the public and private sectors. Universities have been at the forefront of water conservation research and technology innovation, offering valuable insights to address South Africa's water challenges. However, Maswime noted the challenge of translating research outcomes into practical solutions within the rigid government procurement framework. He emphasized the need for legislative reforms to accommodate new innovations and facilitate effective public infrastructure delivery. The discussions underscored the urgent need for coordinated action and innovative solutions to address South Africa's water crisis. By leveraging private investment, academic research, and government support, the country can develop sustainable water management practices and ensure a secure water future for its citizens. The engagement of all stakeholders, including government, private sector, and academia, will be crucial in overcoming the challenges and seizing the opportunities presented by the water crisis.