Support the work of the FW de Klerk Foundation

For more information regarding donations contact info@fwdeklerk.org or scan the QR code below

THE WATER CRISIS IS DRAINING SOUTH AFRICA’S ECONOMY AND EMPTYING CITIZENS’ POCKETS

Issued by Ismail Joosub on behalf of the FW de Klerk Foundation on 14/04/2026

South Africa’s water crisis is often described as a service delivery failure. It is that, but it is also something more concrete and more measurable: a national economic loss. It is costing the state billions, municipalities billions more and ordinary citizens money they cannot spare. Section 27(1)(b) of the Constitution states that everyone has the right to have access to sufficient water and section 27(2) requires the state to take reasonable legislative and other measures, within available resources, to progressively realise that right. At local level, section 152(1)(b) requires municipalities to ensure the provision of services to communities in a sustainable manner, while section 195 requires public administration to use resources efficiently, economically and effectively and to remain accountable. The Water Services Act of 1997 reinforces this framework by recognising everyone’s right of access to basic water supply and by placing concrete duties on water services institutions. The constitutional and legislative position is therefore clear. The question is not whether South Africa has a legal framework for water security. It does. The question is why the cost of failure has become so high. 

At national level, the figures are sobering. South Africa loses an estimated R9,9 billion a year through non-revenue water. That is treated water lost through leaks, theft, metering failures and other inefficiencies before revenue is ever collected. The National Water and Sanitation Master Plan has for years warned that municipalities lose about 1 660 million cubic metres of water annually and that roughly R33 billion more per year is needed over a decade to achieve water security. Other official and industry estimates have placed the broader annual need to repair, maintain and upgrade water infrastructure at around R90 billion for the next ten years. These might seem like just abstract planning numbers, but they actually reflect a country that has allowed routine maintenance to become a deferred national liability. The cost of doing nothing is no longer theoretical. It is already sitting on the balance sheet. 

The burden then moves down to provincial and municipal government, where the crisis becomes visible in budgets, debt and emergency procurement. Johannesburg’s recent water position illustrates the point with unusual clarity. An ISS analysis published this month noted that Johannesburg’s non-revenue water was pegged at 44,8%, meaning the city bills and collects only 55,2% of potential water revenue. The result is an annual deficit of almost R7 billion. That weakens the city’s capacity to repair old infrastructure, improve billing systems and restore wastewater treatment works. It also helps explain why water failures can become self-reinforcing: a municipality loses water, then loses revenue, then loses the ability to fix the pipes that caused the losses in the first place. Similar pressures are visible elsewhere. eThekwini has recorded one of the highest metropolitan water loss rates in the country, while towns in the Eastern Cape, Free State, Limpopo and Mpumalanga have repeatedly turned to emergency measures because basic network maintenance and planning were not sustained. 

But the sharpest cost is not always what appears in public accounts. It is what disappears from the pocket of the citizen. There is no single national figure that captures this household burden and that point matters. The damage is dispersed across thousands of daily decisions and forced expenses: buying bottled water, paying informal vendors, installing jojo tanks, fitting booster pumps, repairing appliances damaged by interrupted supply, paying transport costs to fetch water, losing working hours while standing in queues and absorbing the health costs that follow when people resort to unsafe sources. In poor communities, these costs can be ruinous precisely because they are paid in cash, in time and in lost opportunity. The effect is regressive. Households with less money pay a higher practical price for municipal failure. That is one reason the water crisis is not only an infrastructure question. It is also an inequality question. 

The role of water tanker mafias makes this even worse. Recent reporting and public commentary have described a pattern in which infrastructure is sabotaged or allowed to fail, after which tanker contracts become the preferred, profitable substitute for functioning pipes. In Adams Mission in eThekwini, residents were reported to have paid as much as 15 times the official tariff for illegally sold tanker water. Some estimates suggest a 28 000-litre tanker can generate over R1 million in a few days where municipal supply has collapsed and official trucks do not arrive. Gauteng municipalities reportedly spent R2,37 billion on water tankers over five years. Even allowing for the fact that tanker supply can sometimes be a legitimate emergency response, a system that normalises tanker dependence is a system that has become economically irrational. Water delivered temporarily at crisis prices is always more expensive than water delivered reliably through functioning infrastructure. 

This is where constitutional analysis becomes especially important. Section 27 is not satisfied by sporadic tanker deliveries in places where formal networks have failed for months or years. Section 152’s demand for sustainable municipal services is not met by emergency procurement becoming a permanent operating model. Section 195’s command that public resources be used efficiently and accountably is not met where billions are lost through leakage, neglect, irregular procurement or criminal profiteering. If anything, the current pattern suggests a layered constitutional failure: national government has not provided sufficient regulatory and infrastructure support; provinces have too often failed to intervene early enough in collapsing municipalities; and local government has in too many places failed in the basic obligations of maintenance, planning and honest administration. The law is not silent on any of this. The failure is not legal design. It is implementation and enforcement. 

A serious response must therefore begin with the least glamorous but most economically sensible solution: maintenance. Cape Town’s experience during and after the Day Zero period is instructive. Pressure management across much of the city’s network helped save around 70 million litres per day at the peak of the drought. That did not solve every long-term supply issue, but it proved an important point: reducing losses is often cheaper and faster than building entirely new supply. South Africa does not first need a miracle. It needs competent asset management, faster repair cycles, credible metering, ring-fenced maintenance budgets and protection of critical infrastructure. Municipalities should not be permitted to treat maintenance as the discretionary item left over after crisis spending. It is the first line of fiscal discipline. 

International comparisons support this approach. Phnom Penh transformed a broken utility with non-revenue water above 70% into one of the best-performing urban water systems in the region, reducing losses to about 6% through governance reform, metering, staff discipline and anti-corruption measures. Windhoek has for decades shown that treated wastewater reuse can become a stable part of urban supply, reducing pressure on scarce freshwater resources. Israel demonstrates what long-term water security can look like when reuse, desalination and national planning are aligned at scale. South Africa need not copy any one of these models wholesale. Our conditions differ. But the common lesson is clear: governments that measure losses honestly, enforce accountability, diversify supply and reinvest savings can move from chronic crisis to resilience. 

The practical reform agenda is therefore not mysterious. First, reduce non-revenue water aggressively through leak detection, pipe replacement, metering and pressure management. Second, professionalise municipal water administration and ring-fence maintenance funding. Third, audit and tightly regulate tanker contracts, with criminal investigation where sabotage or collusion is suspected. Fourth, use section 139 interventions more seriously where municipalities have plainly failed in their obligations. Fifth, expand wastewater reuse, groundwater development and, where justified, desalination and other diversified sources. Sixth, insist that every water rand be traceable from budget to outcome. These are simply the disciplines of a state that takes both the Constitution and the citizen seriously.

The true cost of South Africa’s water crisis is therefore measured at every level. Nationally, it is a drag on growth and a multibillion-rand infrastructure deficit. Municipally, it is lost revenue, rising emergency costs and collapsing public trust. For the citizen, it is less money at month-end, less time for work and family and less confidence that government can perform its most basic duties. That is why water must now be treated not as a secondary service delivery complaint, but as a central constitutional and economic question. A country cannot speak credibly of growth, dignity or opportunity while its people are paying more for less water. The first obligation of the state is not to explain the crisis. It is to end the unnecessary cost of it.

PUBLIC LAND IS A CONSTITUTIONAL INSTRUMENT, NOT A BALANCE-SHEET ENTRY

The Constitutional Court’s Tafelberg judgment confirms that well-located public land cannot be treated merely as a commercial asset when it can help reverse apartheid’s spatial legacy. Where affordable housing is built matters, because access to employment, transport, education and essential services forms part of meaningful access to adequate housing. Municipalities and provinces must therefore manage and dispose of public land transparently, with genuine public participation and proper regard for its constitutional value.

Read More »

LESSONS FROM THE 2026 GTAC CONFERENCE

The 2026 GTAC Public Economics Conference highlighted a central truth: South Africa’s employment crisis cannot be solved by training people for jobs that do not exist. Sustainable progress requires evidence-based policy, smarter public spending and greater support for the informal, township and rural economies where millions already earn their livelihoods. Ultimately, the Constitution demands a state that protects dignity, removes barriers to opportunity and measures success by real outcomes rather than the number of programmes funded.

Read More »

FW DE KLERK FOUNDATION ON WITHHOLDING OF MUNICIPAL TRANSFERS

The FW de Klerk Foundation notes National Treasury’s decision to withhold transfers to non-compliant municipalities and Parliament’s call for their urgent compliance. These developments confirm what has become crystal clear: Many municipalities across South Africa faces a deep and persistent governance crisis.

Read More »