Water supply and sanitation in South Africa

After the end of Apartheid South Africa's newly elected government inherited huge services backlogs with respect to access to water supply and sanitation. About 15 million people were without safe water supply and over 20 million without adequate sanitation services. Since then, the country has made satisfactory progress with regard to improving access to water supply. However, much less progress has been achieved concerning access to sanitation and significant problems remain concerning the financial sustainability of investments and the lack of sufficient access to sanitation.

Key features that distinguish the South African water and sanitation sector from other countries are the following:

* The existence of an important institutional tier between the national and local government in the form of Water Boards;
* Strong linkages between water supply and sanitation and water resources management through these Water Boards;
* A strong government commitment to high service standards and to high levels of investment subsidies to achieve those standards;
* A policy of free basic water and sanitation;
* Relatively stable and successful private sector participation in water supply;
* A strong water industry with a track record in innovation.

Among the weaknesses in the sector are a lack of attention to maintenance and sustainability; a relative neglect of sanitation; and the uncertainty about the government's ability to sustain current funding levels in the sector.

Access

South Africa is one of the few countries in the world that enshrines the basic right to sufficient water in its Constitution. However, much remains to be done to fulfil that right. [ [http://www.info.gov.za/documents/constitution/1996/96cons2.htm#27 Constitution of 1996, Chapter 2, Section 27] ]

After the end of Apartheid South Africa's newly elected government inherited huge services backlogs with respect to access to water supply and sanitation. About 15 million people were without safe water supply and over 20 million without adequate sanitation services. Since then, the country has made significant progress with regard to increasing access to improved water supply to an additional population of about 10 million people. [ BUSARI, Ola and JACKSON, Barry: Reinforcing water and sanitation sector reform in South Africa, Water Policy, 2006, vol. 8, no4, pp. 303-312. The positive picture painted in that article, however, is not supported by census and survey data compiled by the WHO/UNICEF Joint Monitoring Program. See [http://www.wssinfo.org/pdf/country/ZAF_wat.pdf JMP water] ] However, the "share" of the population with access to water supply (as opposed to absolute numbers) has only increased from 83% in 1990 to 88% in 2004. In his State of the Union address to Parliament in May 2004 President Thabo Mbeki promised "all households will have running water within five years". [ [http://news.bbc.co.uk/2/hi/africa/3736045.stm Mbeki State of the Union 2004] ] Given previous trends, achieving this objective is a major challenge.

With respect to sanitation the picture is much more sobering. According to official figures, an estimated 18 million South Africans did not have access to basic sanitation in 2002 and may be using the bucket system, pit toilets or the "veld" (open defecation). When sanitation systems are inadequate the health impacts can be extremely serious. This is evidenced in the estimated 1.5 million cases of diarrhoea in children under five and the 2001 outbreak of cholera. [ [http://www.dwaf.gov.za/dir_ws/content/lids/PDF/summary.pdf 2001 basic household sanitation White Paper] ] According to estimates by the WHO/UNICEF global Joint Monitoring Program for water and sanitation based on survey and census data, the share of South Africans with access to adequate sanitation actually decreased from 69% in 1990 to 65% in 2004. [ [http://www.wssinfo.org/pdf/country/ZAF_san.pdf JMP sanitation] ] Given these trends it is difficult to see how the national target of universal access to a functioning sanitation facility by 2010 can be achieved.

Furthermore, substantial challenges remain in addressing historical inequalities in access to both water supply and sanitation, and in sustaining service provision over the long term.

Service quality

Water supply

Service quality is highly variable and data is sketchy. Monitoring of service quality by DWAF is only starting. Thus 63% of municipalities could not say if they met drinking water quality standards or not. Water supply to 37% of households was interrupted for at least one day in 2003. [ Infrastructure Barometer 2006, p. 121 ]

Sanitation

A survey by the Council for Scientific and Industrial Research (CSIR) showed that wastewater treatment plants in the Gauteng area are working well and meet effluent standards. However, many other wastewater treatment plants do not meet effluent standards and some do not even measure effluent quality. [ Infrastructure Barometer 2006, p. 122 ]

Responsibility for water supply and sanitation

The water and sanitation sector in South Africa is organized in three different tiers:

* Municipalities, which provide most retail services and also own some of the bulk supply infrastructure;
* Water Boards, which provide primarily bulk water, but also some retail services and operate some wastewater treatment plants, in addition to playing a role in water resources management;
* The national government, represented by the Department of Water Affairs and Forestry (DWAF), as a policy setter.

Banks, private operators, the professional association WISA, the Water Research Commission and NGOs also play important roles in the sector.

Service provision

Responsibility for service provision is shared among municipalities, water boards and community-based organizations in rural areas. The national government, through the Department of Water and Forestry, also operates dams, bulk water supply infrastructure and some retail infrastructure.

Municipalities

thumb|350px|right|Map showing the provinces and districts (numbered) of South Africa">columns
width=200px
col1 =
col2 =According to the Constitution, the Municipal Structures Act and the [http://www.wrc.org.za/downloads/legislature/WSA108-97.pdf Water Services Act] of 1997 responsibility for the provision of water and sanitation services lies with the municipalities, which in practice means the country's 52 district municipalities. The national government can also assign responsibility for service provision to local municipalities, of which there are 231. (see Municipalities of South Africa) Overall, there are 169 water service authorities in South Africa, including water boards, district municipalities, local municipalities and municipal companies.

The responsibility for rural water supply and sanitation has been transferred from the national government, represented by DWAF, to municipalities.

Commercialization and private sector participation

Since 1994 some municipalities have involved the private sector in service provision in various forms, such as contracts for specific services such as wastewater treatment, short-term management contracts and long-term concessions.

In January 1999, the Siza Water Company (SWC) became the first private company to manage a water and wastewater utility in South Africa. Under a groundbreaking 30-year concession contract, SWC assumed responsibility for providing water and sanitation services to what was then known as the Borough of Dolphin Coast, a locality in the iLembe District Municipality with a permanent population estimated at 34,000 located about 50 kilometers north of Durban. The privatization was welcomed and supported by the city council and senior government officials, including President Thabo Mbeki who visited the area to sanction the process. The Development Bank of Southern Africa and the Municipal Infrastructure Investment Unit supported the development and completion of the concession arrangement by providing technical and advisory services during the conception and contract development phase. This helped to make this option understandable and financially feasible. SWC is a local company formed by Saur International of France (which holds a 58% share), four other companies and company employees. After initial difficulties the contract was renegotiated in 2001, including a substantial reduction in investment requirements and the provision of free basic water. A more accurate billing and collection system has led to an increase in revenues of 68%, while tariffs were increased by about 30% and the number of customers increased by 6%. [ [http://waterwiki.net/images/f/f1/USAID_CaseStudy_Bankable_Utilities_Aug05_Cases_Compendium.pdf USAID: CASE STUDIES OF BANKABLE WATER AND SEWERAGE UTILITIES; SOUTH AFRICA: BOROUGH OF DOLPHIN COAST] 2005, p. 3-11 ] In January 2001 the city of Johannesburg established the municipal company [http://www.johannesburgwater.co.za/ Johannesburg Water] and subsequently signed a management contract with Water and Sanitation Services South Africa (WSSA), a joint venture between Suez (ex-Lyonnaise des Eaux), its subsidiary Northumbrian Water Group and the South African company Group 5. The contract was not extended when it expired in 2006.

In 2003 WSSA also had a 25- year concession in Queenstown, Eastern Cape and provided water and wastewater services to over 2 million people in the provinces of Kwa-Zulu Natal (Dolphin Coast), Eastern Cape (including in Stutterheim), Western Cape, Limpopo and Gauteng. [ [http://www.suez.com/en/presse/press/releases-archives/archives/?communique_id=136 Suez] ] A private sector contracts has also been signed in Nelspruit in Mpumalanga (ex-East Transvaal). Despite the good performance of these contracts there is political reluctance to expand private sector participation in the sector.

Water Boards

Government-owned Water Boards play a key role in the South African water sector. They operate dams, bulk water supply infrastructure, some retail infrastructure and some wastewater systems. Some also provide technical assistance to municipalities. Through their role in the operation of dams they also play an important role in water resources management. The Water Boards report to the Department of Water and Forestry.

The following water boards exist in South Africa: [ Some of these may be municipal water companies. To be verified. ]

*Amatola Water Board
*Bothselo Water
*Bushbuck ridge Water Board
*Ikangala Water
*Kalahari East Water Board
*Lepelle Northern Water
*Magalies Water
*Mhlathuze Water
*Namakwa Water Board
*Overberg Water
*Pelladrift Water Board
* [http://www.randwater.co.za/About_RandWater/about_randwater_default.asp Rand Water] in Gauteng Province
*Sedibeng Water
* [http://www.umgeni.co.za/HomePage1.aspx Umgeni Water] in KwaZulu Natal Province
*Uthukela Water

The 15 Water Boards together indirectly served more than 24 million people in 90 municipalities in 2005. The three largest Water Boards - Rand Water, Umgeni Water and Overberg Water - indirectly serve 10 million, 4 million and 2 million people respectively, or three times as much (18 million) as all the 12 smaller water boards together. [ [http://www.dbsa.org/Research/Documents/Infrastructure%20Barometer.pdf Infrastructure Barometer 2006] , p. 123 ] Rand Water has a more than 100-year history in the Gauteng area, the industrial heartland of South Africa. It buys water from DWAF, treats it and sells it to large industries, mines and municipalities.

The Water Boards have associated themselves in the South African Association of Water Utilities (SAAWU), which also includes a few municipal water companies. [ [http://www.saawu.co.za/ SAAWU] ]

Community-based organizations

Community-based organizations operate and maintain some water supply systems in rural areas, where about 40% of South Africans live. Most rural South Africans, however, are served by municipalities.

Policy and regulation

The [http://www.dwaf.gov.za/ Department of Water Affairs and Forestry] (DWAF) is primarily responsible for the formulation and implementation of policy governing Water and Forestry. In the water sector, it is in charge of policies for water resources management as well as water supply and sanitation. There is no economic regulatory agency for water and sanitation in South Africa.

Others

The [http://www.wisa.org.za/company/company.htm Water Institute of South Africa (WISA)] , a professional association, keeps its members abreast of the latest developments in water technology and research through its national and international liaison, links and affiliations.

South Africa has a fairly strong research and training infrastructure in the water sector. The Water Research Commission (WRC) supports water research and development as well as the building of a sustainable water research capacity in South Africa. It serves as the country's water-centred knowledge ‘hub’ leading the creation, dissemination and application of water-centred knowledge, focusing on water resource management, water-linked ecosystems, water use and waste management and water utilisation in agriculture. [ [http://www.wrc.org.za/ WRC] ]

Financiers and Promoters

The Development Bank of Southern Africa (DBSA) is an important player in the water and sanitation sector, both as a financier and as an advisor and project promoter. In 2005-2006 about 29% of its approved projects were for water supply (1,881 million Rand) and sanitation (165 million Rand). [ [http://www.dbsa.org/Research/Documents/DBSAActivitiesReport2005-2006.pdf DBSA Annual Report 2005-2006] , p. 7 ] Other financing institutions are also important in the sector, including [http://www.inca.co.za/ INCA] , Infrastructure Finance Corporation Limited, which claims to be the only 100% privately owned infrastructure debt fund in the world.

NGOs

The [http://www.mvula.co.za/ Mvula Trust] is a well-known water supply and sanitation non-governmental organisation (NGO) in South Africa, which has disbursed over R300 million to water services programmes and projects and has provided services to over a million South Africans who previously did not have access to either water or sanitation services. It is specialized in implementing and supporting the delivery of water services in rural and peri-urban areas through community management, the establishment of community based water services providers and supporting local authorities to create an enabling environment for sustainability.

There are also many other smaller NGOs that together play an important role in the sector.

History and recent developments

1997 Water Services Act

In 1994 the government published its first White Paper on Water and Sanitation Policy, which led to the [http://www.wrc.org.za/downloads/legislature/WSA108-97.pdf Water Services Act] of 1997. The Act modified the role of Water Boards, providing a clear legal definition of the functions of Water Boards and municipalities. Water Boards have historically been the only bulk water providers. Municipalities were obliged to buy water through them. The Act allowed municipalities to develop their own bulk water supply infrastructure or to buy bulk water from providers other than Water Boards. Conversely it also allowed Water Boards to provide retail water services at the request of municipalities. [ 2002 White Paper ] Since the Act has been passed the capacity of both Water Boards and amny water service providers has increased significantly.

The Act also called for higher cost recovery, which proved a challenge due to widespread poverty and a culture of non-payment for water in many Townships, as a remnant of protests against Apartheid. Higher water tariffs and rigorous cut-offs for non-payment, or flow reductions through the installation of "tricklers" that allow only a very limited flow of water, imposed hardships on the poorest.

2000: The promise of free basic water and management contract for Johannesburg

Free basic water. After Thabo Mbeki became President of South Africa in 1999, the African National Congress promised free basic water during a municipal election campaign in December 2000. In July 2001 a revised tariff structure was suggested that included 6 "kilolitres"" (cubic meters) of free water per month (40 litre/capita/day for a family of five or 25 litre/capita/day for a family of eight). Putting the policy of free basic water in practice proved a challenge. The policy is only being implemented gradually.

Johannesburg management contract. Building on earlier experiences with private sector participation since 1994, a five-year management contract for water services in Johannesburg, South Africa's largest city and the country's economic and financial hub, was awarded in 2000 to the Joint Venture Water and Sanitation Services South Africa (WSSA). The Johannesburg management contract was not renewed when it expired in 2005. However, private operators continue to provide services in many other South African cities.

Pre-paid meters. Pre-paid meters were introduced in Johannesburg, including in Soweto, and in other cities as part of management contracts with private operators. These meters, which cut off water supply above the 6 cubic meter monthly limit if no payment is made, sparked substantial protests in poor neighbourhoods. In Johannesburg they were maintained even after the management contract expired.

In April 2008 the South African High Court found this practice unconstitutional, and wrote that denying the poor access to adequate water “is to deny them the rights to health and to lead a dignified lifestyle.” Further, the judge stated that “25 liters per person per day is insufficient for the residents of Phiri”, and ordered the city to provide free basic water in the amount of 50 liters per person per day with the option of an ordinary credit-metered water supply (instead of pre-paid) for more use. The Court apparently assumed a household size of eight. Phiri is a neighborhood in Soweto whose residents had sued against pre-paid meters. [ [http://www.pacinst.org/press_center/press_releases/south_africa_water_decision.html Pacific Institute] ]

2001 Basic Sanitation White Paper

In response to the fact that access to sanitation lags significantly behind access to water, the government published its White Paper on Basic Household Sanitation in 2001. [ [http://www.dwaf.gov.za/dir_ws/content/lids/sanitation.asp Sanitation White Paper] ] It called for universal access to basic sanitation by March 2010, with priority accorded to communities with the greatest needs. The policy outlines the roles of the various stakeholders - households, municipalities, provincial governments, various branches of national government - and establishes coordination and monitoring mechanisms. It also calls for Infrastructure Grants to municipalities to finance investments in sanitation. The paper notes that it is the government's policy to provide free basic services to the poorest, but does not spell out how this policy will be implemented in the case of basic sanitation.

2002 National Strategy: A less prominent role for the national government

Following a second White Paper on water supply and sanitation policy published in 2002 (after the first White Paper in 1994) a national policy was established to further decentralize the sector, phasing out the national government's involvement in service provision, limiting DWAF's role to policy and regulation. [ [http://www.dwaf.gov.za/docs/Other/WaterServices/draft%20water%20services%20white%20paper%206.1.pdf Draft 2002 White Paper of Water Supply and Sanitation] ] In rural areas this policy of decentralization has been supported by the Masibambane program, a sector-wide approach linked to budget-based donor support for rural water supply and sanitation. The initial investment was ZAR 2.2 billion (EUR 279 million) with a focus on the three poorest provinces and a target to reach about 2.5 million people. A 2004 evaluation by the Water and Sanitation Program (WSP) Africa showed that the program performed well financially. [ [http://www.irc.nl/page/13987 IRC Masibambane] ] The program is now in its third phase.

Ministers of Water Affairs and Forestry

* Dr. Kader Asmal (1994-1999)
* Mr. Ronnie Kasrils (1999-2004)
* Ms. Buyelwa Sonjica (2004-2006)
* Ms. Lindiwe Hendricks (since May 2006)

Efficiency

In Johannesburg, non-revenue water was estimated at 42% in 2001 and 37% in 2003. [ http://www.joburg.org.za/2003/budget/water2.stm ]

Tariffs, Cost Recovery and Free Basic Water

South Africa has introduced a policy of free basic services, including water, electricity and solid waste collection. [ For more details see [http://www.win-sa.org.za/filemanager/download/45/fwb_implementation_strategy.pdf DWAF 2001 Implementation Strategy for Free Basic Water] ] As part of that policy, every household is to receive the first 6 cubic meters per month for free. The policy was not to be implemented immediately, but gradually and within the means of each municipality. White Paper 2002, p. 34 ] Municipalities would decide if free basic water would be made available only to the poor, and how the poor would be defined and identified, or if it would be granted to all water users. The cost of the policy has been estimated at 1.5bn Rand or 0.15% of GDP. The subsidy is to be financed either through subsidies from the national government from the "equitable share" automatic transfers, through cross-subsidies from other users or local taxes. Making the subsidy available to the poorest users is a challenge. Nevertheless, in August 2007 36 million South Africans (about 75% of the population) had access to free basic water according to DWAF's water sector information system. [ [http://www.dwaf.gov.za/dir_ws/WSNIS/ WSNIS] ] Out of 169 service providers, 13 provided free basic water to all its users, 149 to some and 7 to none. [ [http://www.dwaf.gov.za/FreeBasicWater/ DWAF Free Basic Water] ]

It has been suggested to also adopt a policy of free basic sanitation, which is likely to present even greater challenges.

There is little information available on actual water tariffs and on their affordability, i.e. the share of water bills in household income.

Investments and Financing

Investment

According to the Infrastructure Barometer published by DBSA and based on figures provided by the National Treasury, total investments in water supply and sanitation in 2002/2003 were as follows:

* 1,137 million Rand for water supply by municipalities
* 485 million Rand for sanitation by municipalities
* 428 million Rand for water supply and some water resources development by Water Boards [ [http://www.dbsa.org/Research/Documents/Infrastructure%20Barometer.pdf Infrastructure Barometer 2006] p. 86-87 ]

Total investments thus stood at 2,450 million Rand or about US$ 250 million, corresponding to about US$ 5/capita. The Compass does not mention any investments by DWAF. [ This uses an exchange rate of 1:10 that prevailed in fall 2002. In June 2003 the exchange rate was less than 1:8 after an appreciation of the Rand ]

The 2002 White Paper estimated investments in the sector to be much higher, at 5bn Rand annually. This included 1.2 bn Rand of investments made by DWAF, 1.0 by Water Boards and 2.8 by municipalities. [ White Paper 2002, p. 2, with no reference given to a specific year or years. At an exchange rate of 6 Rand to 1 US$ in early 2000 this corresponds to about US$800 million. However at the 2002 exchange rate of 10 Rand to 1 US$ it corresponds to only US$500 million. ]

Financing

Municipal infrastructure investments were financed from the following sources in 2002/2003:

* 24% through municipal and provincial grants (each 12%);
* 15% through loans;
* 42% through internal cash generation; and
* 19% through other sources. [ [http://www.dbsa.org/Research/Documents/Infrastructure%20Barometer.pdf Infrastructure Barometer 2006] p. 87. The shares refer to all municipal infrastructure investments. There are no figures specifically for water supply and sanitation. ]

The larger municipalities rely more on loans and on internal cash generation, while the smaller ones depend more on grants and other sources of funding.

All municipalities receive a constitutionally mandated share of national tax revenues as an unconditional recurrent grant, called "equitable share". The formula benefits poorer municipalities.

In addition there is a Municipal Infrastructure Grant (MIG) administered by the Department of Provincial and Local Government. [ For more information on MIG see [http://www.win-sa.org.za/index.php/filemanager/download/109/MIG%20Booklet.pdf MIG] ] and a Capacity Building Grant. The MIG programme is aimed at providing all South Africans with at least a basic level of service by the year 2013 through the provision of grant finance to cover the capital cost of basic infrastructure for the poor.

Criticism of Government water and sanitation policy

Because of the privatisation of basic services such as water and sanitation in South Africa, the actual impact of service delivery by the government is seen as questionable. There are a number of new social movements (such as [http://www.Abahlali.org Abahlali baseMjondolo] and the [http://www.westerncapeantieviction.wordpress.com Western Cape Anti-Eviction Campaign] ) representing the poorest and most oppressed communities in South Africa that have emerged to deal with issues relating to government service delivery and policy. Supplying water to these communities is one of the main issues that these movements address and there is a specific focus on preventing water cut-offs and campaigning for free basic water. Because of their criticism of the government, they have suffered severe repression by officials and police.

References

External links

* [http://www.dwaf.gov.za/ Department of Water Affairs and Forestry]
* [http://www.win-sa.org.za/article/archive/5/ Water Information Network of South Africa]
* [http://www.dbsa.org/Pages/default.aspx Development Bank of Southern Africa]
* [http://www.dbsa.org/Research/Documents/Infrastructure%20Barometer.pdf DBSA Infrastructure Barometer]
* [http://www.mvula.co.za/ Mvula Trust]
* [http://www.Abahlali.org Abahlali baseMjondolo]
* [http://www.westerncapeantieviction.wordpress.com Western Cape Anti-Eviction Campaign]