Kickstarting the water economy - turning crisis into opportunity

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The session brought together officials from the City of Cape Town and the Western Cape Government, water sector businesses, consulate representatives and academics and focused on what needed to be done to strengthen the water sector so that this objective can be achieved.

GreenCape also used the occasion to launch the 2018 Water Sector Market Intelligence Report (MIR), which focuses on opportunities for investors and businesses in the water sector. These include:

• Growing private sector demand for smart water metering systems as a tool for improved water management.
• The potential market for Water Consumption and Water Demand Management (WCWDM) projects that reduce non-revenue water in South African metros is estimated at ~R2bn a year, of which ~R500m is unfunded.
• Water reuse in the industrial sector presents opportunities for both technology and service providers. The total gross value add (GVA) for moderate and highly water intense users in the WC in 2016, excluding agriculture, was R155bn in 2017.
• New residential and commercial property developments in the province are a key market for water efficient devices and greywater reuse systems, presenting a potential market of ~R900m per year.
• Municipalities are increasingly interested in potable water reuse of their municipal wastewater. In Cape Town there is a potential market of over R5bn.
• There are a number of opportunities relating to groundwater and rainwater systems across all private sector markets. The potential residential market in the Western Cape could be worth ~R5.8bn. 
• Large-scale seawater desalination is an emerging market that presents a number of opportunities for investors. Globally, equity returns in desalination projects are typically at least 14%, with higher returns (up to 18%) expected in higher risk countries.

During the first half of the engagement, officials provided an overview of the current policy environment and strategy with respect to the water sector, as well as what future plans include. Furthermore, reflections on lessons learnt from the energy crisis and the water by-law amendments currently out for public consultation were elaborated upon. The more than 150 attendees then discussed these presentations and plans and provided input in 15 facilitated group discussions. The feedback received will be used to guide future dialogue engagements.

Kickstarting the water economy

Said Western Cape minister of economic opportunities Alan Winde: "We've seen several companies investing in water technologies since the start of the drought which has not only contributed to their own resilience, but also kickstarted the water economy. The growth we have seen in water saving services and technologies has been incredible and shows how businesses and our economy are using innovative ways to adapt to changes in our environment. These innovations are also set to create new jobs and growth.”

Wesgro CEO Tim Harris highlighted the importance of building a climate change resilient destination: "The Cape Town model will be discussed in many places around the world now and into the future. It is a case study in how a major city can respond in the short-term to a climate change-induced crisis. But we can't leave it there. We need to also focus on the long-term, and this requires the strengthening of the water sector. If more and more businesses, homes and government buildings become water-smart, we will reduce our water-footprint even further and strengthen our resilience over time. This will be a success story that can be told to investors and tourists who want to visit or do business in our province."