Cape Town counts the cost of drought

Water shortage threatens businesses, jobs

CAPE TOWN: South African winemaker Marlize Jacobs looks out at the dry brown earth of her award-winning vines, surveying the effects of the water crisis ravaging Cape Town and surrounding areas.

“It’s strange – I think vines like to suffer. When the berries are shrinking, there’s more flavour,” she said, describing the impact on her crop of the worst drought in 100 years.

The region has gone without significant rains for over three years, forcing the city to cut residential consumption by over 60%.

Wine flavours may benefit, but businesses like Marlize’s farm, 35km east of Cape Town, have borne the brunt of the water crisis.

“It’s the fourth year that we’re having lower production,” said Marlize, 48.

“Water costs have risen by about 100%. We’re absolutely only giving water to keep the vines alive -- not any more than that.”

Credit rating agency Moody’s warned in January that if the crisis worsens, it could lead to the city losing its investment-grade status.

Western Cape province said in its economic forecast for 2017 that the growth outlook was “soured... by the persisting drought”.

The city narrowly escape the dreaded “Day Zero” early this month, the date when taps will run dry, which was pushed back to next year after months of growing public panic.

If it arrives, people will be forced to queue at public pipes to collect daily 25 litre rations.

The famed winelands, responsible for 11% of the region’s economic output, also bring millions of visitors annually, with the Western Cape tourism sector sustaining 300,000 jobs.

But tourists have been found to use up to eight times as much water as locals.

Water costs have risen by about 100%. We’re absolutely only giving water to keep the vines alive – not any more than that. Marlize Jacobs

The construction industry has not been spared drastic consumption cuts.

Building projects must now rely on imported water with others postponed indefinitely because of shortages – in a region where one in ten jobs are in construction.

The large Rabie Group construction firm uses treated effluent water to make concrete and wash equipment on its Cape Town sites.

“These factors will push up construction prices,” said Rabie director Miguel Rodrigues.

In 2016, 94% of the region’s companies flagged water as a risk to their operations.

“Cutting off their water risks creating job losses,” councillor J.P. Smith said.

The city council working with behavioural scientists and the University of Cape Town to find the best way to “nudge” businesses and residents to slash consumption.

Cape Town’s success in cutting consumption – by 60% in three years – will likely be highlighted on World Water Day on March 22. — AFP