SA Property Owners Association (Sapoa) has voiced concern that ongoing water challenges could severely undermine investor confidence as Johannesburg’s water infrastructure continues to deteriorate.
Last week, Sapoa and the Johannesburg Chamber of Commerce and Industry (JCCI) signed a memorandum of understanding (MOU) to work together with the aim of resolving various challenges that affect both businesses and commercial property owners, particularly Gauteng’s water infrastructure issues.
Speaking to Business Day, Sapoa CEO Neil Gopal said: “Our members incur additional costs as they need to ensure that their buildings have additional water storage facilities such as tanks, find alternative water supply, put extra measures in place to ensure that their buildings are compliant with health and safety requirements.”
In addition, Gopal said obtaining building insurance becomes a challenge given that adequate water supply and pressure is a requirement.
When asked how Sapoa plans to collaborate with government bodies to address water infrastructure challenges and if there are specific policies the association is advocating for, Neil said that discussions are still ongoing.
“However, the review of sections within municipal bylaws with the intention to see how property owners could provide support with fixing some of the infrastructure in real time so as to prevent further water losses as well as reducing the response time between the reporting and attending to water leaks (from 48 hours to 24 hours at least).”
Two meetings have been held so far with various stakeholders including JCCI, Sapoa, the Waterfall Development Forum, Waterfall Management, Banking Association SA, SA Local Government Association along with the Joburg COO to discuss ongoing reservoir, water tower, and water line projects in the Midrand and Waterfall areas.
“Sapoa is extremely concerned as issues of this nature are bound to dampen investor confidence, which would then result in members moving to other parts of the country or to different nodes, (such as Cape Town or even offshore),” Gopal said.
He said Sapoa and JCCI, and other stakeholder partners, have established clear communication with Johannesburg Water to better understand the issues at hand. This collaboration aims to facilitate public-private partnerships through the signing of MOUs, holding officials accountable for the plans discussed in meetings.
Neil confirmed that the Erand Tower, Blue Eagle’s Tower and Woodmead Reservoir projects are set for completion in 2025, aiming to resolve water supply issues in areas such as Woodmead and Blue Hills. However, delays have been caused by the lengthy land acquisition process and tender approvals.
On Monday, after the state of the nation address, the SA Institution of Civil Engineering (Saice) highlighted water security as a critical issue and commended the government’s pledge of R23bn for seven major water projects, including the Lesotho Highlands Phase 2 Polihali Dam.
“However, Saice urges the government to take a more proactive approach to water infrastructure maintenance. Reports indicate that between 45% and 55% of SA’s water is lost due to leaks and ageing infrastructure. With an estimated R1-trillion needed to repair and upgrade existing water infrastructure, Saice stresses the importance of addressing these systemic inefficiencies before they lead to further crises,” the institution said.
The Polihali Dam project is expected to add 490-million cubic metres of water per year into the Vaal river system and will help address some of the country’s growing water demands. Additionally, progress on the Ntabelanga Dam for the Mzimvubu River will bring much-needed water resources to the Eastern Cape.
Saice called attention to the financial distress of water boards, with debts exceeding R23bn. If not addressed, this could lead to water supply disruptions in multiple provinces. They emphasised the need for a more structured financial model, potentially including national funding for water boards, to reduce reliance on municipal payments and ensure the sustainability of bulk water systems.
Saice CEO Sekadi Phayane-Shakhane underscored the importance of not only funding new projects but also ensuring the successful implementation and proper upkeep of existing infrastructure.
“We encourage the government to work closely with Saice experts to streamline infrastructure project execution as this is the most efficient way to turn these plans into a reality for South Africans,” she said.
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