2023 WATER MARKET INTELLIGENCE REPORT

The 2023 Water Market Intelligence Report by GreenCape identifies significant investment opportunities in South Africa's public wastewater infrastructure, specifically focusing on metropolitan municipalities. The report highlights a critical state of existing infrastructure, the potential for circular economy solutions through sludge beneficiation, and the need for energy efficiency and renewable energy interventions to combat rising costs and energy insecurity.

• South Africa faces a severe water crisis driven by climate change, drought, flooding, and ageing infrastructure. The National Water and Sanitation Master Plan (2019) estimates repair and upgrade backlogs of approximately R25 billion for municipal water infrastructure and R332 billion for wastewater infrastructure.
• The 2022 Green Drop report revealed that 39% of municipal wastewater treatment works (WWTWs) are in a 'critical state', meaning they have a score between 0% and <31% and require urgent targeted intervention. The highest percentages of critical systems are found in Limpopo (78%) and the Northern Cape (76%).
• Approximately R8.14 billion is required to restore the functionality of existing municipal WWTWs nationally. Mechanical restoration accounts for 59% of this cost, while civil infrastructure accounts for 25%. Gauteng has the highest restoration cost requirement at approximately R3.18 billion.
• Sludge beneficiation presents a circular economy opportunity to reduce landfill costs, which are estimated at R132 million per annum for metropolitan municipalities. Drivers include a 2019 national ban on liquid waste to landfill and provincial restrictions on organic waste in the Western Cape.
• There is significant potential for energy efficiency (EE) and renewable energy (RE) at WWTWs to reduce operating expenses. An estimated R1.1 billion in viable combined heat and power (CHP) projects exist at WWTWs with existing anaerobic digesters requiring minor refurbishment.
• A substantial funding gap exists in the water sector. The National Water and Sanitation Master Plan estimates R898 billion is required over ten years to achieve universal access, with only R565 billion available, leaving a shortfall of R333 billion.
• Several regulatory and policy changes are underway, including amendments to the National Water Act and the Water Services Act, and the establishment of the National Water Resource Infrastructure Agency (NWRIA) to raise private sector finance for large-scale investments.
• Barriers to investment in the public wastewater sector include municipal capacity constraints, poor creditworthiness, and complex procurement processes. Municipalities and water boards owe the DWS approximately R8.5 billion and R7.6 billion, respectively.

APA

Naidoo, D., Roselt, M., & Mpofu, A. (2023). 2023 WATER MARKET INTELLIGENCE REPORT. GreenCape. https://greencape.co.za/wp-content/uploads/2023/04/WATER_MIR_2023_DIGITAL_SINGLES-1.pdf

Chicago

Naidoo, Deshanya, Marielle Roselt, and Ashton Mpofu. 2023 WATER MARKET INTELLIGENCE REPORT. GreenCape, 2023. https://greencape.co.za/wp-content/uploads/2023/04/WATER_MIR_2023_DIGITAL_SINGLES-1.pdf.

Wikipedia

{{cite report |last1=Naidoo |first1=Deshanya |last2=Roselt |first2=Marielle |last3=Mpofu |first3=Ashton |title=2023 WATER MARKET INTELLIGENCE REPORT |publisher=GreenCape |date=2023 |url=https://greencape.co.za/wp-content/uploads/2023/04/WATER_MIR_2023_DIGITAL_SINGLES-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{naidoo20232023, author = {Naidoo, Deshanya and Roselt, Marielle and Mpofu, Ashton}, title = {{2023 WATER MARKET INTELLIGENCE REPORT}}, institution = {GreenCape}, year = {2023}, url = {https://greencape.co.za/wp-content/uploads/2023/04/WATER_MIR_2023_DIGITAL_SINGLES-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }