Ramaphosa warns failing municipalities as South Africa intensifies water crisis reforms

South Africa’s government is preparing stronger intervention measures against municipalities that continue to fail residents through poor water management, with President Cyril Ramaphosa confirming that legal action has already been launched against dozens of local authorities accused of violating national water legislation.

In his latest weekly newsletter, Ramaphosa said improving water security has become one of government’s most urgent priorities, following years of infrastructure failures, ageing distribution networks and financial mismanagement across many municipalities.

The announcement follows the publication of the National Water Action Plan, a nationwide strategy aimed at ensuring reliable access to safe drinking water for communities throughout South Africa.

Rather than focusing only on new infrastructure projects, the plan places significant emphasis on repairing existing systems, improving governance and strengthening accountability at municipal level.

Water experts have repeatedly warned that deteriorating infrastructure and weak financial controls have contributed to widespread service failures in several parts of the country, leaving many households without consistent water supplies.

Government prepares stronger intervention powers

Ramaphosa said many municipalities have diverted income generated from water sales to fund unrelated municipal operations instead of maintaining essential infrastructure.

The result has been worsening pipe failures, ageing pump stations and shortages of qualified engineers and technical staff responsible for operating local water systems.

Government estimates indicate that nearly half of treated water nationwide never reaches paying consumers because of leaking infrastructure, illegal connections, theft and unbilled consumption. Besides wasting valuable treated water, these losses also deprive municipalities of revenue needed to maintain their networks.

The president stressed that expanding infrastructure alone will not solve the country’s water crisis unless existing assets are properly managed and maintained.

As part of the National Water Action Plan, additional grant funding has been redirected toward municipalities facing the most severe service delivery challenges. At the same time, legal proceedings have been initiated against dozens of municipalities that allegedly breached the National Water Act.

Ramaphosa said that where municipalities are unable or unwilling to provide acceptable services, national government will intervene within the framework of the Constitution. In some cases, alternative water utilities could be appointed to operate municipal water services until performance improves.

New funding model aims to improve accountability

Government also plans to reform the way municipal water services are financed, particularly in South Africa’s eight metropolitan municipalities.

Under the proposed approach, revenue generated from water and sanitation services will be ring-fenced so that it remains within municipal water utilities instead of being absorbed into broader municipal budgets. Officials believe this will allow more consistent investment in infrastructure upgrades, maintenance programmes and operational improvements.

Further institutional reforms are also being considered through the Water Services Amendment Bill currently before Parliament. The legislation seeks to establish clearer separation between municipalities as water authorities and the entities responsible for operating water services, improving transparency and accountability.

Ramaphosa also confirmed that government wants to attract greater private sector investment into water infrastructure while maintaining public ownership of water resources.

According to the president, performance-based contracts will ensure private contractors are rewarded according to measurable service delivery outcomes rather than project spending alone.

He emphasised that water will remain a public good and that partnerships with private investors are intended to supplement, rather than replace, government’s responsibility to provide affordable and universal access.

Alongside financial reforms, authorities are intensifying efforts to dismantle criminal networks that have infiltrated municipal water systems. Government says corruption involving irregular contracts and deliberate damage to infrastructure continues to undermine reliable water delivery across several municipalities.

Source: BusinessTech / Presidency of South Africa

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