South Africa shoots itself in the foot
South Africa’s ongoing water crisis results from municipal mismanagement, poor maintenance, and a lack of planning and investment, and not a lack of water.
This is feedback from Coronation economist Marie Antelme, who outlined some of the key reasons behind the current water crisis and its economic impact.
Antelme explained that the water crisis is similar to load-shedding in its origins and the impact it has on local businesses.
Like load-shedding, the ongoing water crisis in South Africa stems from system failures due to years of underinvestment and poor maintenance.
This has compounded the lack of expansion in water supply for a growing population, particularly in South Africa’s economic hub of Gauteng.
The problem is not that there is a lack of water, Antelme explained, but that the water cannot be transferred from bulk suppliers to the end user efficiently.
Gauteng is an example of the failure of municipal infrastructure after years of underinvestment and inadequate maintenance.
Around 35% of all treated water in Gauteng is lost before it reaches the end user through leaks or illegal connections, Antelme said.
The failure of infrastructure exacerbates South Africa’s water scarcity, with the resource having to be carefully managed to withstand periods of drought.
In the case of Gauteng, the water supply system is extremely complex, with over 19 dams and rivers feeding regional reservoirs as part of the integrated Vaal River System.
Joburg Water has 129 reservoirs and water towers, with the water level in at least 26 of them being very low, critically low or empty.
Crucially, many of these reservoirs are leaking and desperately need maintenance. Joburg Mayor Dada Morero estimated late last year that of the 80 reservoirs, around 42 are leaking, and only 11 are being repaired.
As part of efforts to tackle the crisis of water leakages and infrastructure collapse, 12,100 kilometres of pipelines have been surveyed in Johannesburg. This revealed the below.
- 2,396 burst pipes
- 6,727 leaking meters
- 442 leaking valves
- 259 leaking fire hydrants
This not only points to the scale of the crisis but that it is also self-inflicted, with much of these leakages preventable through adequate maintenance.

Antelme also warned that Gauteng is in a dire situation, with Phase Two of the Lesotho Highlands Water Project being delayed by over a decade.
The Lesotho Highlands Water Project is Gauteng’s most important water source, contributing significant fresh water to the Vaal River System.
Phase One of this project met Gauteng’s need for additional water after being completed in 2004.
It was clear then that a second phase would have to be constructed to keep up with the growing demand from Gauteng’s expanding population. As such, feasibility studies for Phase Two began in 2005 and were completed by 2008.
Phase Two was set to meet Gauteng’s water demand for decades to come and buy the province time to implement other methods to reduce the province’s long-term water demand.
Projected to cost approximately R7.3 billion and deliver water by January 2020, Phase Two has been beset by delays and cost overruns.
Construction was set to finally begin in 2019 but was further delayed, with the project only breaking ground in 2022.
Now running over a decade late, the project will only contribute additional freshwater to the Vaal River System by 2028.
Until then, Gauteng’s water supply will be severely limited. This will require active intervention to balance supply and demand in a similar fashion to how load-shedding worked, Antelme said.
Termed ‘water-shedding’, this will have a significant impact on businesses in Gauteng and, thus, the wider economy as the province contributes 30% of South Africa’s GDP.
Coronation said last year that it would engage with the companies it invests in to ensure they are able to mitigate against the impact of potential water shortages.
This may result in businesses having to spend millions, if not billions, to create a backup water supply and enhance the water efficiency of their operations.
Crucially, self-supply is not a silver bullet as it is nearly impossible to completely go ‘off-grid’ with regard to water and sanitation as, ultimately, sewage has to flow into a centralised system to be treated.
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