Johannesburg – AfriForum says it has requested detailed information from Rand Water regarding its R800 million investment with Tanzania’s Zanzibar Water Authority (ZAWA).
Last Month, Rand Water announced that it had been selected as the preferred bidder for a 10-year contract to provide technical support, infrastructure management, and operational improvement to ZAWA,which operates in the Tanzanian archipelago off the coast of East Africa in the Indian Ocean.
The contract involves an investment of about R800 million.
Rand Water will be responsible for optimising Zanzibar’s water production, transmission, and distribution systems, rehabilitating and upgrading critical infrastructure, implementing world-class operational standards, and enhancing local technical skills and institutional capacity.
However, AfriForum said in a statement made available to The Bulrushes that its request for more information, “follows growing concern about the project in the context of Gauteng’s ongoing water infrastructure crisis, where maintaining reliable bulk water supply remains under increasing pressure”.
AfriForum added: “While Rand Water is legally permitted to undertake secondary activities, it is necessary to assess whether this project is justified and appropriate at this time.
“The scale of the investment, its cross-border nature, and the current domestic challenges in water infrastructure require clear, evidence-based justification to ensure that Rand Water’s primary mandate to secure bulk water supply in Gauteng is not compromised.”
AfriForum said it requested further details from Rand Water under the Promotion of Access to Information Act with the aim of evaluating several key risks associated with the contract.
“These include the allocation of R800 million in public resources to a foreign initiative while domestic infrastructure is under strain, as well as the absence of a disclosed business case, financial model, or projected return on investment,” stated AfriForum.
“There are also concerns about potential financial risks, including currency exposure, revenue collection uncertainty, and sovereign risk.
“In addition, it is necessary to assess whether the project could affect Rand Water’s operational capacity, capital expenditure program, and its ability to fulfil its core mandate.”
When the contract was announced, Rand Water stated that its participation in Zanzibar would not negate its role in South Africa.
Rand Water assured concerned parties that its primary commitment remains the provision of reliable bulk water services in South Africa.
The Water Services Act (1997) permits water boards to undertake secondary activities, provided these do not negatively affect the primary mandate.
The Zanzibar contract is classified as a secondary activity and does not compromise Rand Water’s core responsibilities in South Africa.
Commenting further on the matter, Marais de Vaal, AfriForum’s Advisor for Environmental Affairs, said: “Just because Rand Water’s foreign expansion is legally permissible does not mean it is in the best interest of the residents of Gauteng.
“At a time when water security is already under pressure, every major financial and operational decision must be beyond reproach and supported by clear evidence.”
