REFORMING SOUTH AFRICA’S FAILING WATER INFRASTRUCTURE

Operation Vulindlela was introduced by the South African Government to remove structural barriers that have long hindered inclusive and sustainable economic growth. Since its inception, the initiative has focused on accelerating reforms in key sectors such as energy, transport, and water.

Phase 2, announced in May 2025, shifts attention to addressing the widespread dysfunction in municipalities and the collapse of critical infrastructure that has undermined service delivery across the country.

A central pillar of this phase  is comprehensive water infrastructure reform, aimed at improving water governance and ensuring reliable access to clean, safe water.

The water reform agenda under Operation Vulindlela Phase 2 seeks to:

■ Address the root causes of service delivery failures

■ Protect the quality of drinking water

■ Strengthen institutional capacity and the management of water resources

■ Improve regulatory oversight of water services

■ Encourage greater private sector participation and investment in the water sector

In November 2023, the Minister of Water and Sanitation published the Water Services Amendment Bill for public comment. In September 2025, Cabinet approved the Bill for submission to Parliament which is a significant step toward updating South Africa’s outdated legislative framework governing water supply and sanitation.

T he Water Services Act of 1997, introduced shortly after the democratic transition, sought to guarantee access to basic water and sanitation services for all South Africans in an efficient, equitable, and sustainable manner. However, despite its good intentions, the Act’s objectives have not been fully realised. Many municipalities, designated under the Act as water services authorities, have since become f inancially and operationally dysfunctional, leading to widespread service delivery breakdowns. Historically, outside municipal boundaries, industries such as sugar mills, paper mills, and mining companies operated their own water purification and wastewater treatment facilities. In many cases, these privately managed systems continue to provide essential services. Yet under current law, private entities can only provide water services with municipal approval, a requirement that has often stalled investment and innovation. Another pressing issue is the ability of municipalities to impose surcharges on water services supplied by water boards, even when the municipality does not actually provide the service. This practice undermines the financial viability of major water projects, inflates costs for bulk consumers, and deters private sector involvement. It is widely viewed as wasteful and counterproductive to national economic policy. The new Water Services Bill will need to confront and eliminate this practice to restore confidence in the water sector. T he Bill also introduces a new licensing framework for water service providers. Instead of municipalities granting approvals, the authority to issue operating licences will shift to the Department of Water Services. While this change may promote more consistent regulation, there are concerns about whether the Department will be more efficient than local authorities, given historical delays in issuing water use licences that have impeded development in the past. In conclusion, Phase 2 of Operation Vulindlela and the Water Services Amendment Bill mark an important step toward reforming South Africa’s failing water infrastructure. However, the current proposals may not go far enough. Unless long-standing issues such as municipal surcharges and bureaucratic inefficiencies are decisively addressed, the country’s water sector risks remaining trapped in a cycle of underinvestment, mismanagement, and declining service delivery.

Should you require advice or assistance, please contact

Michael Jackson on

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