NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Theresa Smith

In 2021, water crises and social instability were ranked third highest risk for doing business in South Africa, behind unemployment and failure of infrastructure for energy generation.

South Africa is a water-stressed country, characterised by uneven rainfall distribution and an extreme climate which sees evaporation rates often exceeding precipitation.

Water scarcity and inequity in access to water and sanitation are major challenges that are the responsibility of the South African government. In 2021 billed water revenue at municipal metros was exceeded by expenditure while revenue for wastewater management broke even with expenditure.

Investment to address these challenges present a substantial opportunity in the municipal water sector for investors and businesses alike.

Photo courtesy of PublicDomainPictures.