Entering the public water sector market

This reference guide by GreenCape provides water and wastewater businesses and investors with a framework for entering the South African public water sector. It details the institutional landscape, planned infrastructure spending in metropolitan and Western Cape municipalities, procurement legislation, and platforms for technology trialling.

• South Africa's water sector faces significant pressure from climate change, aging infrastructure, and management failures, with non-revenue water increasing from 37% in 2014 to 47% in 2023. The national water deficit is projected to reach between 17% and 22% by 2030 without intervention, and approximately R900 billion in investments is required over the next decade to address infrastructure needs.
• South African metropolitan municipalities have a combined planned water and sanitation infrastructure spend of approximately R54.6 billion for the medium term (2023/24-2025/26). The City of Cape Town accounts for the largest portion at R22.4 billion, followed by significant investments in wastewater treatment works and sanitation reticulation in eThekwini and the City of Johannesburg.
• In the Western Cape, local municipalities (excluding the City of Cape Town) plan to invest approximately R7.7 billion in water infrastructure over the 2023/24-2025/26 period. George, Stellenbosch, and Drakenstein municipalities represent about 40% of this planned expenditure, with a particular focus on reservoirs and stormwater infrastructure.
• Two major 2024 legislative updates aim to increase private sector involvement and streamline procurement: the Public Procurement Act (23 July 2024), which establishes a Public Procurement Office and Tribunal, and the National Water Resources Infrastructure Agency (NWRIA) Act (27 August 2024), which creates a state-owned company to manage bulk water infrastructure and attract private funding through Public-Private Partnerships (PPPs).
• Public procurement for municipal projects follows specific value thresholds: bids under R2,000 are handled via petty cash, while those above R750,000 (for metros) or R300,000 (for local municipalities) require a competitive bidding process. Bids are evaluated on functionality, price, and B-BBEE levels, using a price/B-BBEE ratio of 80/20 for bids up to R50 million and 90/10 for those above R50 million.
• Several platforms exist to help businesses trial and demonstrate new water technologies, including the Technology and Innovation Forum (TIF) by SALGA and the WRC, the Water Technologies Development Programme (WADER), and the South African Sanitation Technology Enterprise Programme (SASTEP). Additionally, the City of Cape Town operates a New Technology Platform, and the Western Cape Government maintains a public database of green technology suppliers.

APA

GreenCape (n.d.). Entering the public water sector market. https://greencape.co.za/wp-content/uploads/2024/11/Entering-the-public-water-secto-industry-brief.pdf

Chicago

GreenCape. Entering the public water sector market. n.d. https://greencape.co.za/wp-content/uploads/2024/11/Entering-the-public-water-secto-industry-brief.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Entering the public water sector market |url=https://greencape.co.za/wp-content/uploads/2024/11/Entering-the-public-water-secto-industry-brief.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendentering, author = {{GreenCape}}, title = {{Entering the public water sector market}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2024/11/Entering-the-public-water-secto-industry-brief.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }