South Africa is facing worsening water supply problems due to rising municipal debt and deteriorating infrastructure, revealed the Deputy Minister of Water and Sanitation, David Mahlobo.
According to Mr Mahlobo, several of the country’s water agencies ‘won’t make it to March (2025) if these debts aren’t paid, and could close down. In this case, they are debts to the water companies, because it is the agencies that provide them with most of the supply. The debt is more than 23 billion rand, or 1.3 billion dollars.’
The closure of the companies, which also owe money to the state, will affect Gauteng, the country’s most populous province, as well as Limpopo, the entire North West, parts of the Northern Cape and the Free State. In total, water services for almost eight million people are at risk.
‘The Ministry borrows money from the market to build dams and canals, and then owes funds for water user fees to resume operations,’ revealed the minister, without giving further details on how much the government owes.
Also according to David Mahlobo, South Africa is considering the possibility of creating special purpose vehicles to better manage water services, as well as public-private partnerships to finance essential infrastructure projects.
‘The department is analysing how it can leverage private investment to improve our water systems, similar to the agreements made with Eskom for the supply of electricity,’ he said.
Source: BNN Bloomberg
