South Africa explores public-private investment for water security

South Africa is exploring public-private co-investment to address regional water security and infrastructure needs. Following the release of the National Water Action Plan in July, there is a strategic focus on using commercial capital alongside public funds to expand water supply to both industrial users and local communities.

Successful models include the Olifants Management Model Programme in Limpopo, which utilizes a 50:50 funding split between the government and mining companies. However, challenges remain for emerging agricultural sectors. Research from Rhodes University indicates that citrus growers in the Eastern Cape face significant financial hurdles, with water and compliance costs reaching up to R750,000 before revenue is generated. While joint ventures with commercial farmers provide access to irrigation, emerging growers often struggle with high costs, limited access to credit, and a lack of control over financial and management decisions.