2005 - 2006 - Pinsent Masons Water Yearbook 2012

SOUTH AFRICA PART 2: COUNTRY ANALYSIS
Water and sewerage services (2000)
Inadequate sanitation 51%
No potable water 29-34%
Inside lavatories 48%
Outside lavatories 17%
Pit latrines 28%
Bucket system 4%
Informal 1%
Tariffs need to remain affordable and at the same time, capital spending is needed to reduce wastage
and to deliver a perceived improvement in water quality and service. The free basic water policy
currently extends to 26 million people (66% of those served) and is being expanded to 29 million
(77%) in the medium term. Larger water users are now being managed on an economic basis. The
Government estimates that 46,000 users account for 90% of national water demand. These users will
in future be granted water abstraction licences.
Suez developed a national partnership to support local workers in building rural water supply systems
through training provided by Suez. The aim is to bring clean water to 1 million people by 2005. Water
tariffs in Johannesburg have risen by 40% between 2001 and 2004 since the start of the
Johannesburg Water (JW) contract with Suez. Meters have been installed to dispense 6,000L of free
water per household each month.
Five million South Africans still require access to a basic supply of water in 2003. A Water Affairs and
Forestry survey in Kwa Zulu-Natal found that 56.5% of the schemes were operating below the
standards of the reconstruction and development programme. Johannesburg was unable to account
for 42% of the water it paid for in 2001.
Groundwater
Annual availability (1998) 4.80km³
Per capita 108m 3
Annual withdrawal (1980) 2km³
Domestic 10.6%
Industrial 5.6%
Agriculture 83.8%
The economics of equitable provision and privatisation
The South African Municipal Workers' Union (SAMWU) and the Communist Party, part of the ANC–led
Government are ideologically opposed to privatisation per se. To date, four relatively small and local
privatisations have taken place, reflecting a gradualist stance by various parties. One has been for a
tourist area (SAUR and Dolphin Coast), one for a municipality (Biwater and Nelspruit) and two are for
BOTTs (build, operate, train and transfer) for rural areas (WSSA in the Eastern Cape and Northern
Province). WSSA (Suez) serves a total of 2.5 million people through a variety of management and
technical assistance contracts.
The five year Johannesburg Greater Metropolitan Council management contract was awarded to Suez
and is tied to US$300 million in financing, equivalent to ten years of capital spending. Perhaps the
greatest challenge lies in managing growth projections and usage. It appears the longer term
demographic effect of Aids has not been factored into many water demand management models. In
consequence, price changes and capital expenditure deferments are being discussed.
Plans for a concession for Cape Town have been postponed. The overriding concern for the city is to
provide basic water services to the 92,000 informal households that are currently without such
services.
184 Pinsent Masons Water Yearbook 2005 – 2006