South Africa is at a turning point as the ongoing water crisis continues to affect the country’s stability. Ageing municipal systems and increasing water losses are placing growing pressure on communities. In response, Dr Sean Phillips, Director-General of the Department of Water and Sanitation, has called for public-private partnerships to help strengthen water service delivery. Speaking at the RMB Think Tank Summit, he outlined a strategy to involve the private sector in supporting municipalities, while ensuring that government retains oversight of this critical public service.
In a compelling address at the recent RMB Think Tank Summit, Dr Phillips confronted South Africa’s acute water crisis with resolute determination, championing public-private partnerships (PPPs) as a critical solution for faltering municipal water systems.
“The private sector will likely play an increasing role in assisting municipalities with water service delivery,” Phillips asserted, emphasising that these collaborations strengthen local governments without relinquishing control of an essential resource. He further clarified, “support municipalities to deliver water services to communities and not to privatise water systems.”
From repairing dilapidated pipelines to implementing smart metering to curb the 47% water loss afflicting some municipalities, Phillips’ goal kindles hope for a nation grappling with water scarcity.
Furthermore, the DWS reports that nearly half of municipal water supply systems are classified as poor or critical, leaving communities such as Ncera Village in the Eastern Cape without reliable access to clean water despite adequate rainfall. Non-revenue water, lost through leaks, illegal connections, or unpaid bills, has surged to 47% in 2023, up from 37% a decade ago. Additionally, the DWS projects a 17% water deficit by 2030 if current trends persist, exacerbated by climate change-induced shifts in rainfall patterns and prolonged droughts.
The DWS’s assessment reports—the Blue Drop Report (published 5 December 2023), Green Drop Report (published 1 April 2022, and No Drop Report (published 5 December 2023)—reveal that 67 out of 144 Water Services Authorities (WSAs) scored ‘critical’ on average across their water supply and wastewater systems, underscoring that municipalities, which constitute the majority of WSAs, are in a state of crisis.
According to the entity, the DWS is tackling this crisis through a multifaceted strategy, integrating financial, technical, and legislative measures. The department allocates R12 billion annually through the Regional Bulk Infrastructure Grant and Water Services Infrastructure Grant to fund infrastructure development. Water boards provide technical assistance to municipalities, supporting the management and maintenance of water systems.
Despite these efforts, the decline in water and sanitation services has slowed but not reversed.
The financial magnitude of the challenge is formidable. Thiago Almeida, Divisional Executive at Nedbank CIB, noted that approximately R30 billion is required annually to enhance and maintain the water sector. At a networking forum hosted by Nedbank and the NEPAD Business Foundation, Almeida stated, “We are agnostic as to whether it’s done by the public sector or the private sector, but we are very conscious that private sector participation is key for speed of rollout,” underscoring the urgency of rapid infrastructure upgrades through collaboration.
Ongoing projects illustrate the potential of public-private partnerships. The Olifants Management Model Programme in Sekhukhune and Polokwane municipalities involves private sector contributions covering 50% of costs to bolster water security. The Nooitgedacht water transfer treatment scheme in Nelson Mandela Bay, supported by the DWS and water boards, exemplifies successful collaboration. Additional initiatives include the Greater Mbizana Regional Bulk Water Scheme in the Alfred Nzo district and wastewater treatment improvements in Maluti-a-Phofung, Emfuleni, Midvaal, and eThekwini, where the DWS and Umgeni Water are addressing infrastructure challenges.
A critical obstacle to effective water management is the acute shortage of municipal capacity, particularly in engineering expertise, which contributes to failing infrastructure.
This was said at the Young Engineers Changemakers Programme (YECP) five-year celebration at the DBSA offices in Midrand, where Deputy Minister Sello Seitlholo addressed this issue, as detailed in the DWS press release published 20 May 2025. He stated, “The country is in the midst of failing infrastructure, and a great cause of these failing infrastructure is due to lack of capacity and skills in municipalities, particularly engineering skills.”
Seitlholo further cautioned, “municipal water and sanitation services are deteriorating, as it was revealed by the recent Green Drop, Blue Drop and No Drop assessment reports.” He warned, “This is a bleak sign that municipalities, constituting a majority of WSAs, are in crisis. If the state of governance in municipalities does not improve and we do not capacitate municipalities with skilled engineers and planners, we will face a crippling water crisis. And unlike with our electricity crisis, water is a resource that cannot be replaced.”
Building on this, the water crisis is compounded by significant obstacles. Municipalities owe over R28 billion to water boards, severely constraining funds for infrastructure repairs.
In Gauteng, leakage rates reach 35%, underscoring the urgent need for upgrades. Climate change exacerbates the situation, with erratic rainfall and prolonged droughts straining already fragile systems.
The government has stated that it is pursuing ambitious reforms to address these challenges. Phase 2 of Operation Vulindlela aims to restructure municipal water services by ringfencing revenues, ensuring funds from water sales are reinvested into infrastructure maintenance. The Water Services Amendment Bill could see municipalities lose their water service provider licences if they fail to meet minimum standards. Additionally, plans for an independent regulator to oversee the water sector aim to ensure transparency and accountability in public-private partnerships.
Furthermore, the South African Water Partnership (SAWW) and the establishment of a Water Partnership Office to secure funding underscore the collaborative approach. However, the current funding model remains fragmented. National grants cover social projects such as rural dams, while water boards rely on borrowing and sales revenue, and municipalities face restrictions on using grants for operations or maintenance.
Deputy Minister Sello Seitlholo’s remarks on 20 May 2025, about deteriorating municipal water and sanitation services and the critical state of 67/144 WSAs, apply to several KwaZulu-Natal (KZN) municipalities with critical or poor performance in their water supply and/or wastewater systems.
These municipalities exhibit the deteriorating services and critical WSA status that Seitlholo warned could lead to a crippling water crisis. The following KZN municipalities are relevant due to their critical ratings or deteriorating services:
eThekwini Metropolitan Municipality: Noted in the DWS press release (20 May 2025) as a site for wastewater treatment improvement projects with the DWS and Umgeni Water. The 2022 Green Drop Report highlighted issues with ageing infrastructure and sewage spillages, indicating deteriorating wastewater services.
The 2023 Blue Drop Report assessed four drinking water supply systems, with eThekwini Main, Ogunjini, and Tongaat achieving low-risk ratings and excellent microbiological and chemical compliance, but the rural boreholes system received a critical-risk rating due to lack of information on the DWS’s Integrated Regulatory Information System (IRIS).
Msunduzi Local Municipality: The 2023 Blue Drop Report noted that Msunduzi’s water supply is at “critical risk” with a Blue Drop Risk Rating of 100% (the worst possible risk level), a significant decline from its previous ranking among the top three municipalities, indicating deteriorating water services.
Impendle Local Municipality: The 2023 Blue Drop Watch Report identified the Impendle water system as scoring 50% in technical assessments, indicating poor performance and aligning with the critical state described by Seitlholo.
Ugu District Municipality: The 2023 Blue Drop Watch Report highlighted that the Bhobhoyi water system in Ugu District does not meet SANS 241:2015 drinking water standards, indicating critical water quality issues.
uMzinyathi District Municipality (including Endumeni Municipality): The 2022 Green Drop Report identified wastewater systems in uMzinyathi as critical, with scores below 31%, reflecting deteriorating sanitation services and contributing to the critical WSA status.
Zululand District Municipality: The 2022 Green Drop Report identified critical wastewater systems in Zululand, with scores below 31%, indicating deteriorating sanitation services.
Amajuba District Municipality: The 2023 Blue Drop Watch Report noted critical water supply issues, with systems scoring 49% in technical assessments, indicating dysfunctional infrastructure and non-compliance with SANS 241:2015 drinking water standards, reflecting critical performance issues that align with Seitlholo’s comments about deteriorating services and critical WSAs. The 2022 Green Drop Report identified critical wastewater systems in Amajuba, with scores below 31%, indicating deteriorating sanitation services and contributing to the critical WSA status noted by Seitlholo.
uThukela District Municipality: The 2023 Blue Drop Watch Report highlights uThukela as managing the Ladysmith and Ngagane water treatment plants, both scoring 80–95% (good condition) in technical assessments, but some systems, including Ladysmith, do not meet SANS 241:2015 standards for chemical compliance, indicating partial deterioration in water quality. The 2022 Green Drop Report explicitly lists uThukela as having critical wastewater systems, with scores below 31%, reflecting severely deteriorating sanitation services and aligning with the critical WSA status (67/144) noted by Seitlholo. This critical rating reinforces uThukela’s inclusion in the deputy minister’s warnings about a potential crippling water crisis due to failing infrastructure and lack of capacity.
Specific Mentions of Alfred Duma (Ladysmith) and Newcastle Municipalities
The Alfred Duma and Newcastle Municipality are highlighted for their mentions or performance in the 2023 Blue Drop and 2022 Green Drop reports.
Alfred Duma Municipality: The 2023 Blue Drop Watch Report mentions the Ladysmith water treatment plant, managed by uThukela District and serving Alfred Duma, scoring 80–95% (good condition) but not meeting SANS 241:2015 chemical compliance standards as of 29 March 2023, indicating partial deterioration in water quality.
Newcastle Municipality: The 2023 Blue Drop Watch Report specifically mentions the Durnacol water system in Newcastle Municipality, part of Amajuba District, as scoring 49% in technical assessments, indicating dysfunctional infrastructure, and not meeting SANS 241:2015 standards for chemical compliance, reflecting critical performance issues in water supply that align with Seitlholo’s comments about deteriorating services and critical WSAs.
Reflecting on the above, Dr Phillips’ rallying cry for public-private partnerships marks a defining moment in South Africa’s struggle against its intensifying water crisis.
By leveraging private sector innovation to address crumbling infrastructure, reduce the staggering 47% non-revenue water losses, and enhance municipal capacity, these carefully regulated collaborations offer a promising pathway to revitalise failing water systems. Projects like the Olifants Management Model and the Young Engineers Changemakers Programme demonstrate the transformative potential of combining expertise and training, providing a lifeline to communities like Ncera Village struggling with unreliable water access.
Yet, the journey to a sustainable water future remains arduous, with municipal debts exceeding R28 billion, persistent skills shortages, and climate change intensifying drought and erratic rainfall. Success hinges on rigorous oversight, substantial investment, and unwavering commitment to reforms such as the Water Services Amendment Bill and Operation Vulindlela. By scaling proven initiatives and empowering a new generation of skilled engineers, South Africa can forge a resilient water system, ensuring clean water reaches every corner of the nation before the crisis escalates beyond control.
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