WISA • CHAIR’S COMMENT
Towards a multifaceted approach South Africa remains a world leader in water technology, knowledge and innovation. We have no shortage of technical solutions. And yet, the 2019 Global Innovation Index identified infrastructure as one of South Africa’s key weaknesses. By Dan Naidoo
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ater industry professionals are well aware that South Africa’s water infrastructure is declining in terms of functionality, efficiency and meeting the needs of all. The most recent SAICE Infrastructure Report Card awarded South Africa a D- for bulk water resources, a C+ for supply in major urban areas, and a D- supply for all other areas. Once globally revered, South Africa’s water and sanitation sector now faces challenges of insufficient maintenance,
Dan Naidoo, chair, WISA
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funding shortfalls, loss of skills, major project delays, rising non-revenue water levels, declining water quality, and a discontinuation of effective monitoring, such as through the Blue and Green Drop reports. All this while over 3 million people still do not have access to a basic water supply service and 14.1 million people are without access to safe sanitation. It is clear that the problem does not lie in the technical solutions, of which there are no shortage, but rather in the implementation thereof. We must broaden the discourse in the sector to explore the economic, political and behavioural aspects that govern water and sanitation if we are to implement effective and sustainable solutions.
The economics of it all
The Covid-19 pandemic has placed economics at centre stage. While nonpayment has long been a challenge, the pandemic and resultant lockdown have exacerbated this growing problem. The capex and opex needed to address South Africa’s water and sanitation challenges run into the billions. But the economic impacts of the Covid-19
pandemic and resultant increase in nonpayment have decimated our municipalities. The drop in income amounts to billions of rand and many of our municipalities, including the metros, find themselves in dire financial circumstances that place future investments in the sector at significant risk. The most recent Auditor-General (AG) report highlights a growing trend of established businesses across the value chain showing signs of a diminishing ability to pay for services, or completely refusing to pay. Individuals and households feel the same pressures and are similarly not forthcoming with payments. Added to this, the report paints a bleak picture of the way billions of rand allocated to municipalities are being managed. In fact, the AG describes it as “contrary to the prescripts and recognised accounting disciplines.” Revenue management and enhancement is absolutely crucial moving forward. And unfortunately, this
