BUSINESS NEWS - South Africa’s new National Water Action Plan, released in July, has placed infrastructure funding and private-sector investment firmly at the top of the country's water agenda.
The strategy creates a major opportunity to ensure capital extends beyond commercial needs to build critical infrastructure that expands water supply to surrounding local communities.
Olebogeng Manhe, Group Chairman and Co-Founder of the Gap Infrastructure Corporation (GIC), believes combining public and private funding is key to unlocking regional water security.
"Growing up in the arid Northern Cape, it is difficult to overemphasise how important water access is to improved living standards and running a business, big or small," says Manhe.
This approach is particularly relevant where industrial users - such as mines, farms, power stations, and factories - operate alongside growing towns and rural communities that depend on the same regional water systems.
Co-investment allows planners to design larger infrastructure projects from the outset. By combining public funds with commercial capital, single shared projects can keep local industry moving, create jobs, and provide reliable water to households in need.
Manhe points to existing projects as successful working templates:
The Olifants Management Model Programme (OMMP) in Limpopo: Funded on a 50:50 basis by government and commercial mining companies to expand bulk raw and potable water infrastructure for both industry and local residents.
The uMkhomazi Water Projects in KwaZulu-Natal: Combines a 25% government grant, a 25% interest-free government loan, and 50% raised from financial markets to support local municipalities.
"When the public sector aligns commercial demand with surrounding public needs, the impact on human lives is significant, as more households and small businesses gain access to clean running water," Manhe explains.
He urges both industrial leaders and government officials to assess regions where commercial demand overlaps with public need, approaching water challenges with joint co-investment proposals rather than isolated solutions.
"Private capital does not replace public investment - it complements it. By bringing public funding, commercial users, and long-term capital together, projects can serve economic growth and local communities alike."
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