Thursday, February 21, 2008

Water supply and sanitation in South Africa

South Africa's newly elected government inherited huge services backlogs with respect to access to water supply and sanitation. About 15 million people were without safe water supply and over 20 million without adequate sanitation services. Since then, the country has made satisfactory progress with regard to improving access to water supply. However, much less progress has been achieved concerning access to sanitation and significant problems remain concerning the financial sustainability of investments and the lack of sufficient access to sanitation.Key features that distinguish the South African water and sanitation sector from other countries are the following:
  • The existence of an important institutional tier between the national and local government in the form of Water Boards;
  • Strong linkages between water supply and sanitation and water resources management through these Water Boards;
  • A strong government commitment to high service standards and to high levels of investment subsidies to achieve those standards;
  • A policy of free basic water and sanitation;
  • Relatively stable and successful private sector participation in water supply;
  • A strong water industry with a track record in innovation.

Among the weaknesses in the sector are a lack of attention to maintenance and sustainability; a relative neglect of sanitation; and the uncertainty about the government's ability to sustain current funding levels in the sector.

South Africa: Water and Sanitation
Data
Water coverage (broad definition) 88% (2004)
Sanitation coverage (broad definition) 65% (2004)
Continuity of supply 63%
Average urban water use (l/c/d) n/a
Average urban water tariff (US$/m3) n/a
Share of household metering n/a
Annual investment in WSS US$5 per capita (2002/2003)
Share of self-financing by utilities n/a
Share of tax-financing n/a
Share of loan financing n/a
Institutions
Decentralization to municipalities Substantial
National water and sanitation company None
Water and sanitation regulator None
Responsibility for policy setting Department of Water Affairs and Forestry
Sector law Yes
Number of urban service providers 169
Number of rural service providers


Access

South Africa is one of the few countries in the world that enshrines the basic right to sufficient water in its Constitution. However, much remains to be done to fulfil that right.
After the end of Apartheid South Africa's newly elected government inherited huge services backlogs with respect to access to water supply and sanitation. About 15 million people were without safe water supply and over 20 million without adequate sanitation services. Since then, the country has made significant progress with regard to increasing access to improved water supply to an additional population of about 10 million people. However, the share of the population with access to water supply (as opposed to absolute numbers) has only increased from 83% in 1990 to 88% in 2004. In his State of the Union address to Parliament in May 2004 President Thabo Mbeki promised "all households will have running water within five years". Given previous trends, achieving this objective is a major challenge.
With respect to sanitation the picture is much more sobering. According to official figures, an estimated 18 million South Africans did not have access to basic sanitation in 2002 and may be using the bucket system, pit toilets or the "veld" (open defecation). When sanitation systems are inadequate the health impacts can be extremely serious. This is evidenced in the estimated 1.5 million cases of diarrhoea in children under five and the 2001 outbreak of cholera. According to estimates by the WHO/UNICEF global Joint Monitoring Program for water and sanitation based on survey and census data, the share of South Africans with access to adequate sanitation actually decreased from 69% in 1990 to 65% in 2004.Given these trends it is difficult to see how the national target of universal access to a functioning sanitation facility by 2010 can be achieved.
Furthermore, substantial challenges remain in addressing historical inequalities in access to both water supply and sanitation, and in sustaining service provision over the long term.

Service quality

Water supply

Service quality is highly variable and data is sketchy. Monitoring of service quality by DWAF is only starting. Thus 63% of municipalities could not say if they met drinking water quality standards or not. Water supply to 37% of households was interrupted for at least one day in 2003.

Sanitation

A survey by the Council for Scientific and Industrial Research (CSIR) showed that wastewater treatment plants in the Gauteng area are working well and meet effluent standards. However, many other wastewater treatment plants do not meet effluent standards and some do not even measure effluent quality.

Responsibility for water supply and sanitation

The water and sanitation sector in South Africa is organized in three different tiers:

  • Municipalities, which provide most retail services and also own some of the bulk supply infrastructure;
  • Water Boards, which provide primarily bulk water, but also some retail services and operate some wastewater treatment plants, in addition to playing a role in water resources management;
  • The national government, represented by the Department of Water Affairs and Forestry (DWAF), as a policy setter.

Banks, private operators, the professional association WISA, the Water Research Commission and NGOs also play important roles in the sector.

Service provision

Responsibility for service provision is shared among municipalities, water boards and community-based organizations in rural areas. The national government, through the Department of Water and Forestry, also operates dams, bulk water supply infrastructure and some retail infrastructure.

Municipalities

Map showing the provinces and districts (numbered) of South Africa          Northern Cape       North West       Gauteng             Limpopo             Mpumalanga        KwaZulu-Natal       Eastern Cape        Free State           Western Cape
Map showing the provinces and districts (numbered) of South Africa
Northern Cape North West Gauteng Limpopo Mpumalanga
KwaZulu-Natal Eastern Cape Free State Western Cape

According to the Constitution, the Municipal Structures Act and the Water Services Act of 1997 responsibility for the provision of water and sanitation services lies with the municipalities, which in practice means the country’s 52 district municipalities. The national government can also assign responsibility for service provision to local municipalities, of which there are 231. (see Municipalities of South Africa) Overall, there are 169 water service authorities in South Africa, including water boards, district municipalities, local municipalities and municipal companies.
The responsibility for rural water supply and sanitation has been transferred from the national government, represented by DWAF, to municipalities.

Commercialization and private sector participation

Since 1994 some municipalities have involved the private sector in service provision in various forms, such as short-term management contracts, long-term concessions and contracts for specific services such as wastewater treatment.
In January 2001 the city of Johannesburg established the municipal company Johannesburg Water and subsequently signed a management contract with Water and Sanitation Services South Africa (WSSA), a joint venture between SUEZ (ex-Lyonnaise des Eaux), its subsidiary Northumbrian Water Group and the South African company Group 5. The contract was not extended when it expired in 2006.In 2003 WSSA also had a 25- year concession in Queenstown, Eastern Cape and provided water and wastewater services to over 2 million people in the provinces of Kwa-Zulu Natal (Dolphin Coast), Eastern Cape (including in Stutterheim), Western Cape, Limpopo and Gauteng.[8] A private sector contracts has also been signed in Nelspruit in Mpumalanga (ex-East Transvaal). Despite the good performance of these contracts there is political reluctance to expand private sector participation in the sector.

Water Boards

Government-owned Water Boards play a key role in the South African water sector. They operate dams, bulk water supply infrastructure, some retail infrastructure and some wastewater systems. Some also provide technical assistance to municipalities. Through their role in the operation of dams they also play an important role in water resources management. The Water Boards report to the Department of Water and Forestry.

The following water boards exist in South Africa:

The 15 Water Boards together indirectly served more than 24 million people in 90 municipalities in 2005. The three largest Water Boards - Rand Water, Umgeni Water and Overberg Water - indirectly serve 10 million, 4 million and 2 million people respectively, or three times as much (18 million) as all the 12 smaller water boards together. Rand Water has a more than 100-year history in the Gauteng area, the industrial heartland of South Africa. It buys water from DWAF, treats it and sells it to large industries, mines and municipalities.
The Water Boards have associated themselves in the South African Association of Water Utilities (SAAWU), which also includes a few municipal water companies.

Community-based organizations

Community-based organizations operate and maintain some water supply systems in rural areas, where about 40% of South Africans live. Most rural South Africans, however, are served by municipalities.

Policy and regulation

The Department of Water Affairs and Forestry(DWAF) is primarily responsible for the formulation and implementation of policy governing Water and Forestry. In the water sector, it is in charge of policies for water resources management as well as water supply and sanitation. There is no economic regulatory agency for water and sanitation in South Africa.

Others

The Water Institute of South Africa (WISA), a professional association, keeps its members abreast of the latest developments in water technology and research through its national and international liaison, links and affiliations.
South Africa has a fairly strong research and training infrastructure in the water sector. The Water Research Commission (WRC) supports water research and development as well as the building of a sustainable water research capacity in South Africa. It serves as the country’s water-centred knowledge ‘hub’ leading the creation, dissemination and application of water-centred knowledge, focusing on water resource management, water-linked ecosystems, water use and waste management and water utilisation in agriculture.

Financiers and Promoters

The Development Bank of Southern Africa (DBSA) is an important player in the water and sanitation sector, both as a financier and as an advisor and project promoter. In 2005-2006 about 29% of its approved projects were for water supply (1,881 million Rand) and sanitation (165 million Rand). Other financing institutions are also important in the sector, including INCA, Infrastructure Finance Corporation Limited, which claims to be the only 100% privately owned infrastructure debt fund in the world.

NGOs

The Mvula Trust is a well-known water supply and sanitation non-governmental organisation (NGO) in South Africa, which has disbursed over R300 million to water services programmes and projects and has provided services to over a million South Africans who previously did not have access to either water or sanitation services. It is specialized in implementing and supporting the delivery of water services in rural and peri-urban areas through community management, the establishment of community based water services providers and supporting local authorities to create an enabling environment for sustainability.

There are also many other smaller NGOs that together play an important role in the sector.

History and recent developments

The skyline of Johannesburg's Central Business District as seen from the observatory of the Carlton Centre.

The skyline of Johannesburg's Central Business District as seen from the observatory of the Carlton Centre.

1997 Water Services Act

In 1994 the government published its first White Paper on Water and Sanitation Policy, which led to the Water Services Act of 1997. The Act modified the role of Water Boards, providing a clear legal definition of the functions of Water Boards and municipalities. Water Boards have historically been the only bulk water providers. Municipalities were obliged to buy water through them. The Act allowed municipalities to develop their own bulk water supply infrastructure or to buy bulk water from providers other than Water Boards. Conversely it also allowed Water Boards to provide retail water services at the request of municipalities. Since the Act has been passed the capacity of both Water Boards and amny water service providers has increased significantly.The Act also called for higher cost recovery, which proved a challenge due to widespread poverty and a culture of non-payment for water in many Townships, as a remnant of protests against Apartheid. Higher water tariffs and rigorous cut-offs for non-payment, or flow reductions through the installation of "tricklers" that allow only a very limited flow of water, imposed hardships on the poorest.

2000: The promise of free basic water

After Thabo Mbeki became President of South Africa in 1999, the African National Congress promised free basic water during a municipal election campaign in December 2000. In July 2001 a revised tariff structure was suggested that included 6 "kilolitres"" (cubic meters) of free water per month (about 40 litre/capita/day for a family of five). Putting the policy of free basic water in practice proved a challenge. The policy is only being implemented gradually.Building on earlier experiences with private sector participation since 1994, a five-year management contract for water services in Johannesburg, South Africa's largest city and the country's economic and financial hub, was awarded in 2000 to the Joint Venture Water and Sanitation Services South Africa (WSSA). Pre-paid meters were introduced at that time in Johannesburg and other cities. These meters, which cut off water supply if no payment is made, sparked substantial protests in poor neighbourhoods. While the Johannesburg management contract was not renewed, private operators continue to provide services in many other South African cities.

2001 Basic Sanitation White Paper

In response to the fact that access to sanitation lags significantly behind access to water, the government published its White Paper on Basic Household Sanitation in 2001. it called for universal access to basic sanitation by March 2010, with priority accorded to communities with the greatest needs. The policy outlines the roles of the various stakeholders - households, municipalities, provincial governments, various branches of national government - and establishes coordination and monitoring mechanisms. It also calls for Infrastructure Grants to municipalities to finance investments in sanitation. The paper notes that it is the government's policy to provide free basic services to the poorest, but does not spell out how this policy will be implemented in the case of basic sanitation.

2002 National Strategy: A less prominent role for the national government

Following a second White Paper on water supply and sanitation policy published in 2002 (after the first White Paper in 1994) a national policy was established to further decentralize the sector, phasing out the national government’s involvement in service provision, limiting DWAF’s role to policy and regulation.In rural areas this policy of decentralization has been supported by the Masibambane program, a sector-wide approach linked to budget-based donor support for rural water supply and sanitation. The initial investment was ZAR 2.2 billion (EUR 279 million) with a focus on the three poorest provinces and a target to reach about 2.5 million people. A 2004 evaluation by the Water and Sanitation Program (WSP) Africa showed that the program performed well financially. The program is now in its third phase.

Ministers of Water Affairs and Forestry

Efficiency

In Johannesburg, non-revenue water was estimated at 42% in 2001 and 37% in 2003.

Tariffs, Cost Recovery and Free Basic Water

South Africa has introduced a policy of free basic services, including water, electricity and solid waste collection. As part of that policy, every household is to receive the first 6 cubic meters per month for free. The policy was not to be implemented immediately, but gradually and within the means of each municipality. Municipalities would decide if free basic water would be made available only to the poor, and how the poor would be defined and identified, or if it would be granted to all water users. The cost of the policy has been estimated at 1.5bn Rand or 0.15% of GDP. The subsidy is to be financed either through subsidies from the national government from the "equitable share" automatic transfers, through cross-subsidies from other users or local taxes. Making the subsidy available to the poorest users is a challenge. Nevertheless, in August 2007 36 million South Africans (about 75% of the population) had access to free basic water according to DWAF's water sector information system. Out of 169 service providers, 13 provided free basic water to all its users, 149 to some and 7 to none.It has been suggested to also adopt a policy of free basic sanitation, which is likely to present even greater challenges.
There is little information available on actual water tariffs and on their affordability, i.e. the share of water bills in household income.

Investments and Financing

Investment

According to the Infrastructure Barometer published by DBSA and based on figures provided by the National Treasury, total investments in water supply and sanitation in 2002/2003 were as follows:

  • 1,137 million Rand for water supply by municipalities
  • 485 million Rand for sanitation by municipalities
  • 428 million Rand for water supply and some water resources development by Water BoardsTotal investments thus stood at 2,450 million Rand or about US$ 250 million, corresponding to about US$ 5/capita. The Compass does not mention any investments by DWAF.

The 2002 White Paper estimated investments in the sector to be much higher, at 5bn Rand annually. This included 1.2 bn Rand of investments made by DWAF, 1.0 by Water Boards and 2.8 by municipalities.

British South Africa Company

The British South Africa Company (BSAC) was established by Cecil Rhodes through the amalgamation of the Central Search Association and the Exploring Company Ltd., receiving a royal charter in 1889. Modelling the BSAC on the British East India Company, Rhodes hoped it would enable colonisation and economic exploitation across much of south-central Africa, as part of the "Scramble for Africa". The company's directors included the Duke of Abercorn, Rhodes himself and the financier Alfred Beit.
The arms of the British South Africa Company
Africa from Cairo to the Cape (according to Cecil Rhodes)
the first board of directors of the British South Africa Company, 1889. Top Row: Horace Farquhar, Esq.; Albert Grey, Esq.; Alfred Beit, Esq. Middle Row: His Grace the Duke of Fife, K.T., P.C.; Hon. C. J. Rhodes (Founder and Managing Director in South Africa); His Grace the Duke of Abercorn, K.G., P.C. Bottom Row: Lord Grifford, V.C.; Herbert Canning, Esq. (Secretary); George Cawston, Esq.

Powerful company

Trading

The company was empowered to trade with African rulers such as King Lobengula; to form banks; to own, manage and grant or distribute land, and to raise a police force (the British South Africa Police). In return, the company agreed to develop the territory it controlled; to respect existing African laws; to allow free trade within its territory and to respect all religions. But Rhodes and the white settlers who made up the company were known best for setting their sights for ever more mineral rights and more territorial consessions from the African peoples, establishing their own governments, making their own laws little concern or respect for African law, and flexing their muscles with their artillery.

Security

The company recruited its own army, and attacked and defeated the Matabele and Shona north of the Limpopo river in what became known as the First Matabele War. It was the first time in history Britons have used the Maxim gun in combat (five Maxims to five thousand Ndebele casualties). The company carved out (and for the following three decades administered) a territory which it named Zambezia, and later, Rhodesia, and which now covers the area occupied by the republics of Zambia and Zimbabwe.

Medal

In 1896, Queen Victoria sanctioned the issue by the British South Africa Company of a medal to troops who had been engaged in the First Matabele War. In 1897, the Queen sanctioned another medal for those engaged in the two campaigns of the Second Matabele War: Rhodesia (1896) and Mashonaland (1897). The government of Southern Rhodesia re-issued the medal to commemorate the earlier 1890 Pioneer Column, in 1927.

Politics

In 1914, the royal charter was renewed, on condition that settlers in Rhodesia were given increased political rights. In 1922, the company entered negotiations with the government of the Union of South Africa, which was keen to take over the territory - a plan foiled by the colony's settlers, who voted against incorporation with South Africa. In 1923, Britain chose not to renew the BSA Co's charter, and instead accorded 'self-governing' colony status to Southern Rhodesia (today, Zimbabwe) and protectorate status to Northern Rhodesia (today, Zambia).

Profits

The BSAC was not able to generate enough profit to pay its shareholders dividends until after it lost direct administrative control over Rhodesia in 1923. In 1933, the BSAC sold its mineral exploration rights south of the Zambezi to the Southern Rhodesian government, but retained rights over Northern Rhodesian mineral rights, as well as the company's vast interests in mining, railways, real estate and agriculture across southern Africa.

Merger

In 1964, the company was forced to hand over its mineral rights to the government of Zambia, and the following year, the British South Africa Company merged with the Central Mining & Investment Corporation Ltd and The Consolidated Mines Selection Company Ltd to form a mining and industrial company known as Charter Consolidated Ltd, of which slightly over one-third of the shares were owned by the British/South African mining company Anglo American plc.

the first board of directors of the British South Africa Company, 1889. Top Row: Horace Farquhar, Esq.; Albert Grey, Esq.; Alfred Beit, Esq. Middle Row: His Grace the Duke of Fife, K.T., P.C.; Hon. C. J. Rhodes (Founder and Managing Director in South Africa); His Grace the Duke of Abercorn, K.G., P.C. Bottom Row: Lord Grifford, V.C.; Herbert Canning, Esq. (Secretary); George Cawston, Esq.
Africa from Cairo to the Cape (according to Cecil Rhodes)
The arms of the British South Africa Company

No comments: