In examining the disparities, it becomes evident that contemporary South Africa is grappling with a scenario resembling a failed state, particularly evident in the breakdown of the electricity and water services sector. This raises a fundamental question – why is the South African water sector faltering while its Australian counterpart thrives? 

Why is the South African water sector collapsing?

Addressing the collapse of the South African water sector requires a nuanced understanding rooted in historical context. The origins of the issue can be traced back to the British Empire’s consideration of federalism during the Anglo-Zulu War. While federalism found success in Canada and Australia, it failed to take root in South Africa.

Fast forward to the present, South Africa operates as a unitary state with a centralised water policy and national water law. This uniform approach leaves little room for local variation, resulting in a cookie-cutter model applied nationwide. Despite water being a constitutional right and given that free basic water is guaranteed to all, the sector faces challenges such as high levels of unaccounted-for water, leakages, and poor management. The absence of justiciable water rights and the separation of water from land ownership hinder private sector involvement. Consequently, utilities are reliant on government bailouts, a situation exacerbated by failing water and electricity grids, diminishing the tax base, and escalating unemployment. 

Australia’s flourishing water sector: A model of innovation 

Australia’s federal structure facilitates a diverse array of state policies and laws, promoting adaptability to local conditions. Boasting over 30 distinct water authorities, each tailored to meet local needs, Australia thrives on a justiciable water right system that allows private ownership. Market forces drive water to its most productive use, and investor confidence is a cornerstone in decision-making. 

South Africa’s water sector: uninvestable and facing challenges 

Contrastingly, South Africa’s water sector faces challenges. A lack of innovative approaches, coupled with a rigid, cookie-cutter methodology has stifled local imagination. The state’s hostility towards private capital has rendered the water sector generally uninvestable. While some large water boards still maintain strong balance sheets, the growing debt burden from non-payment by municipalities poses a threat. Limited development of groundwater at utility scale, coupled with a reluctance to replicate successful initiatives, further compounds the challenges. Sea water desalination, where it exists, is confined to small package plants in distressed municipalities along the coast, often seen as unsustainable. 

Australia’s innovative solutions: integrating technology and conservation

Australia stands out for its innovative solutions. With a vibrant private sector driving constant technological advancements, groundwater is a key element in most utilities, actively integrated into the grid and accounting for around 40% of the total resource. Building codes align with water conservation, ensuring rainwater harvesting and aquifer recharge are actively pursued at various levels, including suburb and city. The management of sewage, increasingly sophisticated water recovery from waste, and seawater desalination at utility scale funded by private capital showcase Australia’s forward-thinking approach.  

Centralisation versus decentralisation