Water: Market Intelligence Report 2020
Summary
The report examines the South African urban water sector, highlighting a projected 17% gap between water supply and demand by 2030. It identifies significant investment opportunities in the agri-processing sector (estimated at R6 billion) and the municipal sector, including wastewater reuse (theoretical potential of R50 billion) and biogas/energy efficiency projects. The document details the regulatory landscape, including the National Water Act and municipal by-laws, and discusses barriers such as low water tariffs, capacity constraints in municipalities, and public perception of reclaimed water.
Key insights
- South Africa faces significant water scarcity, with forecasts suggesting a 17% gap between water supply and demand by 2030. However, this gap could be narrowed by 2035 if planned supply projects are implemented and water use is reduced by 7.5%.
- The South African agri-processing sector presents a total realisable investment potential of approximately R6 billion in water technologies over the next four to six years, with the highest saving potential found in the pulp and paper industry.
- There is a massive theoretical investment opportunity of approximately R50 billion for potable water reuse projects at wastewater treatment works (WWTWs) larger than 1 MLD across South Africa.
- Energy efficiency and biogas opportunities at municipal waterworks are significant, with an estimated R1.1 billion in viable combined heat and power (CHP) projects and another R1.1 billion in energy efficiency and optimisation retrofits within the eight metropolitan municipalities.
- Low water tariffs in many municipalities create a poor business case for private investment in water efficiency, as paybacks for effluent reuse or biogas projects often exceed seven to eight years, while agri-processors typically seek paybacks under three years.
- The Western Cape Water Supply System (WCWSS) is highly constrained, with total allocations exceeding the revised system yield of 545 million m3 per year, leaving no further opportunities for large dam construction.
- Public perception, referred to as the 'yuck factor', and safety concerns regarding the use of treated wastewater for potable purposes are primary barriers to municipal-scale reuse projects.
Cite the original document
- APA
- Mpofu, A. B., Kruger, R., & Reddick, J. (2020). Water: Market Intelligence Report 2020. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/WATER_MARKET_INTELLIGENCE_REPORT_19_3_20_WEB-3.pdf
- Chicago
- Mpofu, Ashton Busani, Raldo Kruger, and Jane Reddick. Water: Market Intelligence Report 2020. GreenCape, 2020. https://greencape.co.za/wp-content/uploads/2022/10/WATER_MARKET_INTELLIGENCE_REPORT_19_3_20_WEB-3.pdf.
- Wikipedia
- {{cite report |last1=Mpofu |first1=Ashton Busani |last2=Kruger |first2=Raldo |last3=Reddick |first3=Jane |title=Water: Market Intelligence Report 2020 |publisher=GreenCape |date=2020 |url=https://greencape.co.za/wp-content/uploads/2022/10/WATER_MARKET_INTELLIGENCE_REPORT_19_3_20_WEB-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{mpofu2020water, author = {Mpofu, Ashton Busani and Kruger, Raldo and Reddick, Jane}, title = {{Water: Market Intelligence Report 2020}}, institution = {GreenCape}, year = {2020}, url = {https://greencape.co.za/wp-content/uploads/2022/10/WATER_MARKET_INTELLIGENCE_REPORT_19_3_20_WEB-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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