President Cyril Ramaphosa has enacted legislation that will enable South Africa to expand bulk water infrastructure and improve the management of existing water assets to ensure water security over the next decade.

The President has assented to the South African National Water Resources Infrastructure Agency SOC Ltd Bill, which establishes a new agency that will be responsible for developing and managing national water infrastructure, and will be able to mobilise finance for new projects through innovative models to crowd in private investment.

The new legislation forms part of reforms – in the water sector aimed at increasing investment in the maintenance and construction of water infrastructure and improved water quality.

These reforms are driven by Operation Vulindlela – a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms and support economic recovery.

The initiative aims to modernise and transform network industries, including electricity, water, transport and digital communications.

The new law flows from a project of the Department of Water and Sanitation to restructure the South African national water resources infrastructure.

Over the past few years, there has been an emerging recognition of the need for a stronger public sector in the key area of infrastructure development, effective maintenance, operation and management of existing infrastructure, and to support social and economic development.

The South African National Water Resources Infrastructure Agency SOC Ltd Act establishes the National Water Resources Infrastructure Agency SOC Limited as a vehicle to achieve the strategic objectives of government to eradicate poverty and to ensure sustainable and equitable development, including promoting the State’s socio-economic and transformation objectives.

The law seeks to address the current fragmentation in water resource management between the Department of Water and Sanitation, the Trans-Caledon Tunnel Authority (TCTA) and the Water Trading Entity, and to establish an agency that is able to raise funds on its own balance sheet to increase investment in water infrastructure.

The Act outlines the establishment of the Agency as a State-Owned Company and major public entity.

Media enquiries: Vincent Magwenya, Spokesperson to the President – media@presidency.gov.za