Despite a 0% increase in the tariff for potable water, Umgeni Water, the state-owned water board in KZN, says it was able to record a profit of R1.22b.

This was revealed at a media briefing on the entity’s annual financial performance in the financial year 2021/2022 held in Durban yesterday.

Chairperson of the board, Ziphozethu Mathenjwa, said in the financial year under review, revenue grew by 8.4%.

“This is a vote of confidence in the product that is purified at and supplied from Umgeni Water’s treatment plants.”

On product quality (wastewater), Umgeni said of the 11 wastewater treatment works managed by the entity, nine achieved greater than 90% compliance and two achieved more than 80% compliance.

The entity said these levels ensured that wastewater was treated to safe levels in order to discharge back into water resources for social, environmental and other downstream uses.

In the report, the ‘spend performance’ for the year was R969m, of which R611m (R825m in 2021) was spent on bulk infrastructure augmentation, expansion, upgrades and rehabilitation projects.

“Of this, R320m (33%) went towards projects deemed to be rural development. Overall, 53% of target water infrastructure project milestones were met.”

CFO Thami Mkhwanazi said bulk water sales increased by 2.5% with the majority of the sales coming from the eThekwini Municipality.

Mkhwanazi said eThekwini being the biggest driver of their profits, was no surprise as the municipality was their biggest client.

“Regarding water efficiencies, Umgeni said in the reporting period, water loss was maintained well below the entity’s target level of 5%, at 2.7% recorded for the year (and compared to 2.5% in the previous year).”

With the country experiencing stage 4 load-shedding, Umgeni said energy was a crucial resource for water and wastewater treatment processes and optimal pumping remained an important part of the business and, it was important for them to find different ways of generating electricity.

Looking ahead, Umgeni Water said it will continue to intensify its efforts at creating an ethical culture in all areas of the business.

“We have included upfront a report from the social and ethics committee on its ethics performance. A combination of solid enterprise-wide systems, backed by highly competent employees and robust leadership provided by the executive team and board, will ensure consistent improvement of Umgeni Water’s performance in execution of its strategy going forward.”

She added that the 2023/24 financial year will see the launch of Umgeni Water Learning Academy that is aimed at supporting itself and other water boards and municipalities with skills and competencies required by the water sector and local government.