South Africa: Water Crisis Over Debts

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South Africa faces worsening water supply problems due to rising municipal debt and failing infrastructure, City Press reported, citing Deputy Water and Sanitation Minister David Mahlobo. The debt is above 23 billion rand, or $1.3 billion, he added.

A number of the nation’s water agencies “will never make it to next March if these debts are not paid”, and may close down, Mahlobo told the Johannesburg-based news site. “In our case, they are owing the water boards because water boards give them the bulk water supply.”

South Africa is considering special purpose vehicles to better manage water services, as well as public-private partnerships to fund key infrastructure projects, he said.

“The department is looking at how it can leverage private investment to enhance our water systems, similar to the arrangements made with Eskom for electricity supply.”

Article on City Press (paywall)

Article on Bloomberg

 

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