Deputy Minister of Water and Sanitation David Mahlobo has urged private sector leaders to view themselves as strategic partners rather than simple off-takers.Mahlobo made this call during the AWSISA and Global South Water and Sanitation Mpumalanga Dialogue at the Middelburg Banquet Hall today.

According to Mahlobo, targeted investment and stricter financial discipline will address the nation’s growing water infrastructure challenges. He emphasised that government efforts alone are insufficient to address pressing issues such as unemployment, poverty, and failing local infrastructure.

He also stressed that government seeks long-term investment rather than handouts. “We don’t see you as off-takers. We see you as partners. We see you as shareholders. In South Africa, we are open for partnership, and we are open for reforms,” said Mahlobo. “We don’t want you to give us money, but we want money to be invested. “Funding needed to tackle R400b water loss.

Addressing the scale of the crisis, Mahlobo outlined significant funding requirements across the country and within Mpumalanga. “Mpumalanga alone requires over R30b to resolve current infrastructure challenges, including leaking pipe networks. Water loss nationwide amounts to over R400b, with a long-term projected impact exceeding R1 trillion.

“The Department of Water and Sanitation’s Water Partnership Office (WPO), alongside Infrastructure South Africa and the Development Bank of Southern Africa (DBSA), has raised R60b in blended and debt financing, though more is required. Municipalities urged to ring-fence revenue.

Mahlobo raised concerns about the financial viability of local municipalities, pointing out a pervasive culture of non-payment for municipal services driven by both economic hardship and systemic culture.
“To ensure long-term stability, municipal revenues from rates, taxes, and water services must be ring-fenced specifically for operation and maintenance,” he said.

“Do you need a law or a degree just to know that if you sweat an asset, to get a return, you ring-fence the money? You don’t need a law, it’s just leadership. Next time I see you, we will only recall, what was the target, what was our performance, who performed badly, and who performed well? Those who perform badly, there must be consequences.”

Mahlobo highlighted ongoing strategic initiatives, such as building new dams, enhancing groundwater reclamation, and utilising green and blue bonds to fund environmentally sensitive projects. He urged delegates to embrace modern technologies, including artificial intelligence and the Internet of Things (IoT), to modernise water management systems. Mahlobo said greater professionalisation and human resource development across the sector are needed to safeguard water security for future generations.