Standard Bank’s plan to tackle South Africa’s water crisis

South Africa is at the brink of a water and waste crisis, which Standard Bank is addressing through assisting its business clients with water and waste management.

The country has faced numerous challenges in relation to water management this year, ranging from old and failing infrastructure to a looming Day Zero. 

Waste management is also causing increasing strain in South Africa, stemming from issues like outdated infrastructure, historical backlogs and a growing population. 

For this reason, Standard Bank is looking to offer its business clients financing for water and waste management, similar to its renewable energy financing, as more businesses express concern about water supply risks.

Deerosh Maharaj, the Executive Head of Energy, Infrastructure, and Mining at Standard Bank, informed Business Times that the bank has seen success in providing renewable energy solutions to its business clients.

To date, Standard Bank has allocated over R2 billion to support more than 1,500 small to medium enterprises transitioning to renewable energy projects. This initiative aimed to enhance their resilience and reduce reliance on coal-fired power.

Now, the bank was looking to provide similar solutions for water and waste management.

Head of Standard Bank Business Ecosystems and Sustainability Dr Manessah Alagbaoso told Newzroom Afrika that the bank’s approach is informed by sustainability overall.

Alagbaoso explained that while load-shedding may have nearly triggered an energy crisis in the country, renewable energy is not the only aspect of sustainability.

Water and waste problems are becoming more pressing, and the hope is to tackle these issues before it turns into a crisis. “Hence the reason we are getting involved now,” Alagbaoso said.

Standard Bank is working with its customers and other stakeholders to ensure that they take a proactive approach to addressing water and waste management. 

It is important for South Africans to understand that across Sub-Saharan Africa, South Africa is one of the most water-stressed countries, he added.

In the past, there was a general assumption that water would always be there, so people were not aware of just how water-stressed the country really is, Alagbaoso explained.

“As climate change takes effect, it is becoming more and more obvious.”

For example, Zambia’s Kariba Dam has provided the bulk of electricity consumed in Zambia and Zimbabwe for decades.

But recently, water levels have become too low to run the Hydro Electric Plant, which has resulted in load-shedding in the country for periods of over 24 hours, “which is a real crisis”, Alagbaoso said.

“If you bring it back to South Africa, the fact that we are a water-stressed country means that we have to find sustainable means and ways of managing water and not make the assumption that it’s always going to be there.”

He stressed that the country needs to get into a culture of sustainable use, whether that relates to agriculture, household use or industry.

Typically, this would look like reusing, reducing and recycling, which he said is not something that is widely communicated in the country.

For this reason, Standard Bank plans to start by creating awareness among their customers so they are aware that this crisis is looming. 

Water needs to be available to everyone, which also requires the infrastructure to be in place. 

Positively, Alagbaoso said that if the country is able to start using water sustainably early, this crisis can be averted and there will be enough resources for this generation and future generations. 

He added that Standard Bank’s intention is to support their customers who operate in the real economy.

To do this, the bank is working closely with local and international stakeholders and the government. 

It is making money available to support its customers in carrying out economic activities that will enable all of these goals to happen.

This includes a collaboration between the public and private sector to ensure that water supply in not left to the government alone. 

Waste Management

Alagbaoso explained that waste is often regarded as something which has little to no value.

However, waste should be viewed through a sustainability lens, considering the circular economy, which examines the entire value chain.

This includes looking at how you originate a product or solution, how you use and maintain it, how you extend its life, and, when it comes to the end of life, how you can recycle, repurpose, or sustainably dispose of it. 

An example of this is in the agricultural sector, Alagbaoso said, where some people are now using organic waste, “biomass”, to generate electricity.

Previously, compost would have been used instead and this biomass would have been considered as valueless waste.

“Now, waste is money. Waste is valuable and waste drives the circular economy,” he said.

“Generation of electricity is one aspect of it, which of course makes the farmer or the user  independent or energy secure.”

There is also the added benefit of carbon credits, Alagbaoso explained. All of these initiatives, whether it is in the energy, water or waste space, are aiming to reduce the amount of carbon being pumped into the atmosphere.

If you can show that you are reducing your carbon emissions, that can be converted into carbon credit which can then be turned into revenue.

“The narrative has changed from waste being something of no value yeah to waste being something of value.”