670 Billion Rand to strengthen the water sector adequately

One realization of 2012 is that South Africa’s water supply needs a general overhaul. A Limpopo hospital hit the headlines because it was cut off from the supply system, because necessary machinery was stolen and not working. Such incidents might happen more regularly if investments stay away. According to Water and Environmental Affairs Minister Edna Molewa, investment in the country’s water resources needs to double in the next 10 years if the country is to meet the growing demand. The draft National Water Resource Strategy stated that South Africa would require up to 670 Billion Rand to strengthen the water sector adequately over the next ten years. That means a funding gap of 338 Billion Rand. However, being able to provide enough water is not only necessary to prevent social problems, it is also a condition to remain attractive for businesses.

However, the problem is that policy decisions which promote the attractiveness for investors are often met with resistance from short-term looking voters, and it is the government’s task to balance on that tightrope.

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