The right water strategy will help grow SA’s economy
SA, like most countries, is in a deep depressive state. The economic contraction has been worsened by the Covid-19 pandemic.
This was the atmosphere in which finance minister Tito Mboweni presented the government s medium-term budget policy statement recently.
A lot of focus has been of austerity measures to mitigate the harsh economic downturn, but the more solid plan has to be creating an economic recovery pathway. An important component of this trajectory would be the development of water and sanitation in SA.
We are not unique. Water has been one of top five risks to the global economy for nine consecutive years according to the World Economic Forum. Economists agree that the lack of water security negatively affects GDP growth in many sectors as the structure of the South African economy continues to depend on water intensive industries.
In addition, the 2019 report puts SA at 10th in Africa with respect to progress on the UN Sustainable Development Goals. Stats SA data indicates significant gaps in access to water and even larger deficits in access to improved and safe sanitation.
Water & sanitation minister Sisulu, speaking at the launch of SDG6 Global Acceleration Framework, pledged the country ’ s recommitment to the programme of action.
A key challenge of course is finance and capacity. An important solution is to engage a new paradigm that recognises water as an instrument for economic growth. The Singapore model clearly works where citizens, in spite of living in a country with a small market, have access to the best water management system, paid through Singapore serving a global market.
Let us examine some of the key elements of an innovative strategy and road map to water facilitating a sustainable economic recovery for SA and the region.
First would be the introduction of independent water producers. A new model would be for the private sector to provide water of varying quality, depending on its intended use. This is an evolutionary model with utilities and public service providers as sole or primary purchasers. The designated sources of this ‘ new water ’ would be various sub-prime quality water and wastewater. This includes acid mine water, various brackish aquifers, saline water inland and coastal water.
Second is the new sanitation. SA already plays a leading role in developing technologies in this domain having been part of the development of ISO 30 500 for non-sewered sanitation. We lead in demonstrating NewSan solutions and the Water Research Commission’ s strong global partnership means that the country is poised for a local sanitation revolution and a global brown revolution as expressed in the department of trade & industry’ s industrial policy action plan.
They include a global market for NewSan technologies and services, and beneficiation of sanitation waste. This ranges from waste as fertiliser to highend beneficiation to produce clean energy, liquid fuel, high value chemicals, protein products and lipids.
New business models for toilet provision, products and services; reusable water and nutrients; data and information will provide new benefits across the economy and society.
By 2030, an additional 32m people will require improved sanitation and basic hygiene services locally. The global market for "new sanitation" is estimated at $8bn (R125bn) per annum, expected to grow exponentially. This will lower the reliance on the public purse and would integrate role players, including end users and private companies.
One challenge is operations and maintenance. The WRC with partners, including the African Development Bank, has developed a model called social franchising. This is a community-based entrepreneurship development with centralised support mechanisms. The core in the current pilots has been the provision of maintenance services for school sanitation services and management of waste. Sustainable communitybased businesses with a large employment potential have been realised in the pilots.
The third aspect is the reticulation integrity programme. This is a reconceptualised 'waron-leaks' programme operating on three distinct levels, namely bulk level refurbishment as an industrialisation project; entrepreneurship development to sustainably manage local level projects at municipal level to bring down the now average 40% non-revenue water and +25% treated water lost to leaks; and finally a commissionaire model for private capital investment with public payment on revenue returns.
The fourth aspect is intelligent water systems. The 4IR revolution in water management has proliferated globally. From smart meters to intelligent control systems and remote sensing — the future of water management is here already. This is an opportunity for SA to become the water Silicon Valley of the global South.
Precision agriculture for food security can also be built into the 4IR water revolution. Stimulus must also be linked to data driven systems that provide aggregation services to smaller farmers, precision farming, smart water metering, aggregated science, market and trade advisory services, and innovative circular economy approaches to urban agriculture linked to impact metrics.
The right water strategy has the ability to put SA on an economic growth path, ensuring both business development and huge livelihood creation.
Higher levels of water security remove important risks to direct investment and have positive implications for food security. It needs a leap of confidence in SA s already exemplary
’ record in water research and innovation within which lie the seeds to realise this potential growth. SA needs it and her citizens deserve it.
Let us examine some of the key elements of an innovative strategy and road map to water facilitating a sustainable economic recovery for SA and the region