Entering the public water sector market

The document outlines the structure of South Africa's public water sector, which spent R 41.5 billion on infrastructure procurement in the 2019/2020 financial year. It details the roles of entities like the Department of Human Settlements, Water and Sanitation (DHSWS) and Water Services Authorities (WSAs), and explains the predominantly used design-bid-build procurement model. The guide provides a comprehensive breakdown of bidding requirements, including B-BBEE compliance and the necessity of registering on the Central Supplier Database. It also highlights the importance of strategic partnerships to overcome bidding barriers and lists available platforms for trialling innovative water technologies.

• The public water sector is the largest segment of the water market in South Africa, with infrastructure procurement expenditure totaling R 41.5 billion in the 2019/2020 financial year.
• Public procurement in South Africa is governed by several key pieces of legislation to ensure fairness and transparency, including the Constitution (Section 217), the Public Finance Management Act (PFMA), the Municipal Finance Management Act (MFMA), and the Preferential Procurement Policy Framework Act (PPPFA).
• The design-bid-build (DBB) model is the most common procurement method for public infrastructure, where the public entity manages separate contracts for design and construction, thereby retaining the majority of the risk.
• Bidding success depends on a functionality assessment followed by a scoring system based on price and Broad-Based Black Economic Empowerment (B-BBEE) levels, with a ratio of 80/20 for bids up to R 50 million and 90/10 for those above R 50 million.
• Public-private partnerships (PPPs) and the privatization of water services are rare in South Africa due to a lack of technical capacity in public entities, high planning costs, lengthy approval processes from National Treasury, and political pressure regarding tariffs and jobs.
• To encourage local economic development, the PPPFA Regulations require a minimum of 30% subcontracting to qualifying entities—such as Exempted Micro Enterprises (EMEs) or Qualifying Small Enterprises (QSEs)—for all tenders exceeding R 30 million.
• Because public entities are often reluctant to pilot innovative technologies due to procurement constraints, businesses can use specialized platforms such as the Water Technology and Innovation Forum, the WRC's WADER programme, the National Technology Innovation Agency (TIA), or the City of Cape Town's New Technology Platform.

APA

GreenCape (2021). Entering the public water sector market. https://greencape.co.za/wp-content/uploads/2022/10/ENTERING_PUBLIC_WATER_SECTOR_MARKET_31_3_21-3.pdf

Chicago

GreenCape. Entering the public water sector market. 2021. https://greencape.co.za/wp-content/uploads/2022/10/ENTERING_PUBLIC_WATER_SECTOR_MARKET_31_3_21-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Entering the public water sector market |date=April 2021 |url=https://greencape.co.za/wp-content/uploads/2022/10/ENTERING_PUBLIC_WATER_SECTOR_MARKET_31_3_21-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2021entering, author = {{GreenCape}}, title = {{Entering the public water sector market}}, institution = {GreenCape}, year = {2021}, month = apr, url = {https://greencape.co.za/wp-content/uploads/2022/10/ENTERING_PUBLIC_WATER_SECTOR_MARKET_31_3_21-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }