The long-awaited institutional consolidation of South Africa’s water sector has inched closer with President Cyril Ramaphosa signing the South African National Water Resources Infrastructure Agency SOC Ltd Bill into law. Issued on Tuesday, 27 August, the new legislation sets the stage for a more unified approach to managing the country’s water resources by establishing a single
agency to develop, maintain and expand national water infrastructure, impacting entities such as TCTA.
“This legislation is a crucial move to ensure sustainable water security for South Africa over the next decade,” said President Ramaphosa in a statement issued on Tuesday, 27 August. “The new agency will enable us to develop and maintain critical water infrastructure while also encouraging private sector investment through innovative financing models.”
The new agency will address the fragmentation currently seen in water resource management between the Department of Water and Sanitation, TCTA and the Water Trading Entity. “By consolidating these functions, the agency is expected to improve coordination and efficiency in water management efforts,” President Ramaphosa explained.
This effort is part of broader reforms under Operation Vulindlela, a joint initiative by the Presidency and National Treasury aimed at accelerating structural changes to support economic recovery. “Operation Vulindlela is about modernising and transforming network industries, including electricity, water, transport and digital communications,” the President stated.
President Ramaphosa emphasised that the newly established agency, the South African National Water Resources Infrastructure Agency SOC Limited, will be key in driving investment in the water sector. “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,” he highlighted.
The new legislation reflects a growing recognition of the need for a more cohesive approach to managing South Africa’s water resources, particularly through a stronger public sector role. “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,” President Ramaphosa noted.
With this consolidation, the government aims to enhance its capacity to raise funds for water infrastructure projects and to strengthen efforts to secure the country’s water resources. “The law seeks to address the current fragmentation in water resource management between the Department of Water and Sanitation, 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,” President Ramaphosa concluded.
