Managing Water as a Constraint to Development: A case for integrated planning in the Berg Water Management Area

The Berg Water Management Area is a constrained system where water requirements are projected to exceed yield by 2019. A hydro-economic analysis indicates that by 2040, the water supply deficit could cost the region over R146 billion and nearly 650,000 jobs annually, with the City of Cape Town bearing the highest opportunity costs. The report identifies systemic failures in current top-down planning and financing, recommending the establishment of a Regional Water Utility and the use of multi-criteria decision tools to prioritize 'smart' water use over first-come, first-served allocations.

• The Berg Water Management Area (WMA) is a constrained catchment where all available water is already allocated, and requirements were projected to exceed system yield in 2019.
• By 2040, the projected water supply deficit is expected to cost the region more than R146 billion and almost 650,000 jobs per year.
• There is a massive disparity in the economic value of water between sectors; urban water use generates R993 per m3 compared to R11 per m3 for agricultural use.
• The City of Cape Town's opportunity costs from water deficits will far exceed any other municipality by 2040, totaling over R100 billion per year, though smaller economies like Swartland, Bergrivier, and Saldanha Bay are more vulnerable as the deficit may surpass the size of their current economies.
• Climate change is expected to increase the water requirements of key regional crops by 2040: grapes by 34%, citrus fruit by 35%, and stone fruit by 29%.
• Current planning processes are flawed due to a top-down approach and a 'first-come, first-served' basis for water use licenses, which prevents the prioritization of projects with higher socio-economic benefits.
• Municipalities struggle to implement water infrastructure because state grant funding is limited to social objectives, leaving them unable to raise the off-budget finance required for commercial projects due to a lack of creditworthiness.

APA

GreenCape (2018). Managing Water as a Constraint to Development: A case for integrated planning in the Berg Water Management Area. https://greencape.co.za/assets/Uploads/Synthesis-report-final.pdf

Chicago

GreenCape. Managing Water as a Constraint to Development: A case for integrated planning in the Berg Water Management Area. 2018. https://greencape.co.za/assets/Uploads/Synthesis-report-final.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Managing Water as a Constraint to Development: A case for integrated planning in the Berg Water Management Area |date=4 September 2018 |url=https://greencape.co.za/assets/Uploads/Synthesis-report-final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2018managing, author = {{GreenCape}}, title = {{Managing Water as a Constraint to Development: A case for integrated planning in the Berg Water Management Area}}, institution = {GreenCape}, year = {2018}, month = sep, url = {https://greencape.co.za/assets/Uploads/Synthesis-report-final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }