Tito tackles the water crisis

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In a recent policy paper titled 'Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa', Mboweni proposes that the country apply the principles of the independent power producers programme to the water sector.

This week about 2 500 residents in Tshwane experienced what could be a daily occurrence in South Africa should the country leave its water systems unfixed. After a damaged pipe burst at Fountains, residents in Sunnyside, Arcadia and Clydesdale had to stand in long queues to fill their buckets with water from water tankers that had been provided by the municipality. The outage lasted for three days.

It is estimated that, by 2030, water demand in South Africa will reach 17.7-billion cubic metres. Without taking into account the possible effects of climate change, supply will equal only 15-billion cubic metres. This is clearly unsustainable, given that water is an essential economic component and that its reliable provision is essential for growth.

Independent power producers have reportedly brought in investment to the tune of R190-billion in the country’s energy sector. The proposal to establish an independent water regulator in the department of water and sanitation is part of a medium-term strategy to improve the sector. For the 2019-20 budget, the department has estimated that more than R460-million will be spent on enhancing its water-regulatory functions. The budget to support this programme is expected to increase at an average annual rate of 14.4%, from R303-million in 2018-19 to R453.3-million in 2021-22.

These sentiments are shared by University of the Free State professor Anthony Turton, who says the establishment of an independent water regulator is in line with international best practice, which separates players from referees. Under the National Water Act, the government is the custodian of water but is also tasked with providing water services to the country. This system, according to Turton, has led to a failure of the country’s water sector.

Muller says, in the short term, the department should focus on managing its affairs adequately before establishing a regulator. “It’s just a recipe that everyone feels they must follow, but there is limited evidence for its effectiveness and, in our case, your can’t regulate before you are managing properly. The first thing a regulator wants is a clean set of accounts and the water department does not have that,” he says.

 

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