Water: Market Intelligence Report 2018
Summary
The report highlights a critical need for water resilience in the Western Cape due to severe drought and climate change. It identifies four primary investment areas: water metering and monitoring, water efficiency, water reuse, and alternative water supplies (groundwater, rainwater, and desalination). The document details market potentials, such as a R2 billion potential market for potable water reuse in Cape Town and a R5.8 billion potential residential market for alternative water systems in the Western Cape. It also outlines significant barriers, including municipal creditworthiness, high capital costs, and public perception of wastewater reuse.
Key insights
- South Africa is highly water-stressed, with water demand projected to exceed supply by 17% by 2030, growing from 15 billion m3 in 2016 to 18 billion m3.
- There is a significant funding gap for national water infrastructure; in 2017, the required public sector funding was R70.4 billion, but only R43.4 billion was budgeted, leaving a shortfall of R27 billion.
- Non-revenue water (NRW) in South African municipalities accounts for 41% of the 4,000 million m3/year used, resulting in an estimated annual revenue loss of R6.3 billion.
- The potential market for water-efficient devices and greywater reuse systems in new residential and commercial property developments in the Western Cape is estimated at approximately R900 million per year.
- Potable water reuse presents a potential market of around R2 billion in Cape Town alone, as the city looks to augment supplies with approximately 75 million litres per day (MLD) of treated wastewater.
- The potential residential market for alternative water systems (groundwater and rainwater) in the Western Cape is estimated at approximately R5.8 billion.
- Large-scale seawater desalination is an emerging market with typical global equity returns of at least 14%, reaching up to 18% in higher-risk countries.
- The City of Cape Town's water augmentation programme includes groundwater (Cape Flats, Atlantis, and Table Mountain Group aquifers), potable water reuse, and permanent desalination, with a projected total cost of approximately R6 billion.
- Investment in the municipal water sector is hindered by barriers such as limited municipal creditworthiness, capacity constraints in civil engineering staff, and lengthy procurement processes.
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- GreenCape (2018). Water: Market Intelligence Report 2018. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Water-MIR-FINAL-20180405-3.pdf
- Chicago
- GreenCape. Water: Market Intelligence Report 2018. 2018. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Water-MIR-FINAL-20180405-3.pdf.
- Wikipedia
- {{cite report |author=GreenCape |title=Water: Market Intelligence Report 2018 |date=2018 |url=https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Water-MIR-FINAL-20180405-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greencape2018water, author = {{GreenCape}}, title = {{Water: Market Intelligence Report 2018}}, institution = {GreenCape}, year = {2018}, url = {https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Water-MIR-FINAL-20180405-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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