New Vaal Water Utility set to boost tourism and economic growth in SA

Source: The Reservoir.org

"Pollution and failing wastewater systems have held back the Vaal’s development for many years. The creation of this Special Purpose Vehicle shows that National Treasury, DWS, and Rand Water are taking structural action to rehabilitate the river system and stabilise critical water infrastructure," said Brett Tungay, Fedhasa national chairperson.

Catalyst for tourism and jobs

Fedhasa highlights the VCWU’s potential to drive economic growth by:

• Creating jobs in hospitality, accommodation, recreation, and supporting industries
• Stimulating investment in tourism as water quality and infrastructure improve
• Reviving river-based activities such as fishing tournaments, regattas, and eco-tourism
• Encouraging growth in related sectors, including boat building, marinas, and maintenance services
• Increasing riverfront property values and associated economic activity

The Vaal River Barrage Reservoir remains one of South Africa’s most promising inland tourism destinations. A clean, well-managed Vaal is critical for sustainable tourism growth and long-term job creation.

A national blueprint for water reform

Fedhasa also welcomed government’s plan to replicate the SPV model in other municipalities, noting the urgent need to address municipal debt, with Water Boards collectively owed R28bn— R8.4bn owed to Rand Water alone.

The VCWU model aims to:

• Support Water Boards’ operational sustainability
• Protect national water security
• Introduce professional, ring-fenced management
• Break the cycle of infrastructure collapse
• Ensure accountability and performance
• Address the municipal debt crisis that hampers service delivery

Government has stressed that the new utility is not a debt relief measure, but a decisive step to stabilise services and safeguard the Water Board.

"Fedhasa views the VCWU’s launch as a national turning point toward competence-driven water management, economic revival, tourism growth, and large-scale job creation. A clean, reliable river system is the lifeblood of tourism. Through this new SPV, the Vaal, and ultimately other regions across South Africa, can begin the journey to a sustainable and opportunity-rich future," Tungay concluded.