Strengthening South Africa’s Water Security: Assessing Unconventional Sources

South Africa is at a critical juncture in its water security journey. As one of the most water-stressed countries globally, it already utilizes 98% of its available water resources. Estimates suggest that the country is at risk of having a 17% deficit in water supply by 2030 due to increased demand in the agricultural, industrial, and municipal sectors.

Faced with these challenges, South Africa is exploring alternative solutions to enhance water resilience as traditional sources become less reliable. A key challenge in South Africa’s water sector has been the lack of an enabling regulatory framework that incentivizes private sector participation in wastewater reuse and desalination.

With support from the Public-Private Infrastructure Advisory Facility (PPIAF), the South African government has undertaken a study to evaluate the policy, institutional, and regulatory frameworks for unconventional water sources, including desalination, wastewater reuse (WR), and resource recovery (RR). This initiative seeks to identify barriers, opportunities, and necessary reforms to bolster water security and resilience.

The study has identified key, including regulatory gaps, financial constraints, and limited private-sector investment, which impede the large-scale adoption of WR and RR solutions. Addressing these issues is essential to unlocking alternative water sources and ensuring sustainable access for communities and industries.

In response, PPIAF is assisting in enhancing regulatory frameworks, building institutional capacity, and attracting private investment through public-private partnerships (PPPs) and blended finance. By engaging key stakeholders—including government agencies, utilities, and potential off-takers—this initiative promotes collaboration and knowledge sharing to advance innovative water management strategies.

Knowledge dissemination and capacity building are key to the project's success. PPIAF will work closely with national and municipal authorities to conduct co-creation workshops on regulatory and financial frameworks, develop training programs for public officials and utility managers, and publish reports, case studies, and blogs to share insights with the broader water sector community.

As pressures on South Africa’s water resources intensify, unconventional water solutions offer a viable path forward. Through targeted policy reforms, capacity-building initiatives, and financial incentives, the country can progress toward a more climate-resilient and sustainable water future.

For PPP practitioners, this project serves as a compelling case study on structuring innovative financing and business models for water resilience, including leveraging non-traditional revenue streams.