Wesgro and GreenCape host Dialogue on the Strengthening of the Cape Water Sector
  28/03/2018     News, event, Market Intelligence Report

On 26 March 2018, Wesgro and GreenCape hosted a dialogue engagement to discuss how best to turn the water crisis into an opportunity for economic growth and job creation in the Western Cape.

The open and robust session brought together officials from the City of Cape Town and the Western Cape Government, water sector businesses, consulate representatives and academics and focused on what needed to be done to strengthen the water sector so that this objective can be achieved.

GreenCape also used the occasion to launch the 2018 Water Sector Market Intelligence Report  (MIR), which focuses on a number of notable opportunities for investors and businesses in the water sector. These include:

  • Growing private sector demand for smart water metering systems as a tool for improved water management.
  • The potential market for Water Consumption and Water Demand Management (WCWDM) projects that reduce non-revenue water in South African metros is estimated at ~R2 billion a year, of which ~R500 million is unfunded.
  • Water reuse in the industrial sector presents opportunities for both technology and service providers. The total Gross Value Add (GVA) for moderate and highly water intense users in the WC in 2016, excluding agriculture, was R155 billion in 2017.
  • New residential and commercial property developments in the province are a key market for water efficient devices and greywater reuse systems, presenting a potential market of ~R900 million per year.
  • Municipalities are increasingly interested in potable water reuse of their municipal wastewater. In Cape Town there is a potential market of almost R2 billion.
  • There are a number of opportunities relating to groundwater and rainwater systems across all private sector markets. The potential residential market in the Western Cape could be worth ~R5.8 billion. 
  •  Large-scale seawater desalination is an emerging market that presents a number of opportunities for investors. Globally, equity returns in desalination projects are typically at least 14%, with higher returns (up to 18%) expected in higher risk countries.

Both Agencies were pleased to welcome Western Cape Minister of Economic Opportunities, Alan Winde; the Head of Economic Development and Tourism (DEDAT), Solly Fourie; Chief Director: Green Economy, DEDAT, Helen Davies; Director of Enterprise and Investment, City of Cape Town (CoCT), Lance Greyling; and Sustainable Special Projects in the CoCT Depart of Informal Settlements, Water and Waste Services, Sarah Rushmere.

During the first half of the engagement, these officials provided an overview of the current policy environment and strategy with respect to the water sector, as well as what future plans include. Furthermore, reflections on lessons learnt from the energy crisis and the water by-law amendments currently out for public consultation were elaborated upon.

The more than 150 attendees then discussed these presentations and plans and provided input in 15 facilitated group discussions. The feedback received will be used to guide future dialogue engagements.

For access to the 2018 Water Market Intelligence Report, CLICK HERE.

For access to the dialogue presentations, click on the following links:

Western Cape Government- Supporting the Growth of the Water Sector

City of Cape Town- Water Sector Opportunities

GreenCape- Launch of the 2018 Water Market Intelligence Report

City of Cape Town- Long Term Vision for the Water Sector