Water as a Constraint on Economic Development 2014-2015 Research Project Progress Report

This progress report by GreenCape examines water availability and quality as constraints on economic development in the Berg Water Management Area (WMA) and specifically Saldanha Bay. It identifies a disconnect between linear municipal planning processes and the actual water demands of proposed industrial projects, suggesting that current growth-percentage-based projections may underestimate short-term needs. The report proposes an integrated systems approach to planning, explores 'smart' water allocation based on economic productivity, and evaluates a Water Exchange Network to reduce freshwater intake through industrial water cascading.

• The Berg Water Management Area (WMA) is operating near its allocated capacity, with the total integrated system yield estimated at 596 million m3/a. Current allocations are between being over-allocated by 14 million m3/a and under-allocated by 12 million m3/a, leading to a general perception that the system is "fully allocated."
• Water quality in the lower Berg River is characterized by high salinity, specifically chloride concentrations, which peak in winter. This poses a significant constraint to the steel processing industry in Saldanha, where required concentrations are less than 100 mg/l, but supplied water has reached up to 650 mg/l, increasing operating costs and impacting production.
• Traditional water demand planning in Saldanha Bay relies on generalized growth percentages, which fails to account for the 'stepped' increases in demand caused by large industrial projects. Analysis of actual proposed developments suggests that planned supply from the Berg may be insufficient to meet demand between 2017 and 2019 under medium and high growth scenarios.
• The Saldanha Bay Local Municipality (SBM) prefers desalination to meet future water needs, but the Department of Water and Sanitation (DWS) has expressed concerns that this option was favored without adequate consideration of groundwater or water reuse. Furthermore, the high capital costs of desalination may constrain future industrial development if these costs are passed to industry via levies.
• A preliminary investigation into a Water Exchange Network (WEN) for Saldanha Bay—where water of different qualities is cascaded between industrial users—indicates that freshwater intake could be reduced by up to 15% and effluent discharges reduced by up to 76%.
• Existing planning processes, such as the Integrated Development Plan (IDP), are described as linear and poorly integrated with water resource planning. There is currently no explicit feedback loop between proposed economic developments, the cost of the required water interventions, and strategic decisions on the viability of those developments.
• Economic productivity of water use varies significantly by sector; the 'Urban sector: commercial and industrial consumers' generates the highest GDP and employment per unit of water. In the Berg WMA, the primary sector's GDP per million m3/a is highest in the Saldanha Bay area due to heavy industries, but lowest in the Cape Winelands.

APA

Seyler, H. (2015). Water as a Constraint on Economic Development 2014-2015 Research Project Progress Report. GreenCape. https://greencape.co.za/assets/GreenCape-Water-Project-2014-2015-Report-excl-AppendicesSec1011.1.pdf

Chicago

Seyler, Helen. Water as a Constraint on Economic Development 2014-2015 Research Project Progress Report. GreenCape, 2015. https://greencape.co.za/assets/GreenCape-Water-Project-2014-2015-Report-excl-AppendicesSec1011.1.pdf.

Wikipedia

{{cite report |last1=Seyler |first1=Helen |title=Water as a Constraint on Economic Development 2014-2015 Research Project Progress Report |publisher=GreenCape |date=March 2015 |url=https://greencape.co.za/assets/GreenCape-Water-Project-2014-2015-Report-excl-AppendicesSec1011.1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{seyler2015water, author = {Seyler, Helen}, title = {{Water as a Constraint on Economic Development 2014-2015 Research Project Progress Report}}, institution = {GreenCape}, year = {2015}, month = mar, url = {https://greencape.co.za/assets/GreenCape-Water-Project-2014-2015-Report-excl-AppendicesSec1011.1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }