As CEOs and policymakers focus on the growing water crisis, proactive steps in water management will safeguard both economic stability and social equity
- Water crises have been a top global risk since 2012, with climate change heightening the need for water resilience in South Africa.
- Businesses must invest in water-efficient technologies and collaborate with key stakeholders to prevent economic disruptions and enhance water security
- The recent Business Outlook event highlighted actionable strategies for improving water resilience, with successful case studies from companies leading the way in innovation.
Wrenelle Stander
Every year, the World Economic Forum asks global leaders from various sectors to identify the biggest risks for the coming decade. Since 2012, water crises have consistently been listed as one of the top threats, both in terms of how likely they are and their potential impact.
With climate change becoming more severe, water resilience is rapidly becoming a key focus area for CEOs and public sector leaders around the world. Water resilience means having systems—like ecosystems, infrastructure, and communities—that can handle, adapt to, and recover from challenges such as droughts, floods, contamination, and climate change. Since many industries, not least agriculture, depend so heavily on water, improving water resilience is crucial for economic growth and ensuring food security.
For businesses, having a reliable water supply is vital for operations and for the country’s overall resilience. By investing in water-efficient technologies, getting involved in stewardship initiatives, supporting infrastructure development, and following global best practices, South African companies can help secure our water future. We need to act now and not wait for a crisis to force our hand.
South Africa, generally considered water-scarce, is grappling with growing challenges from climate change, population growth, and urbanisation. The "Day Zero" water crisis in Cape Town from 2016 to 2018 highlighted just how vulnerable our water systems are. While the city narrowly avoided running out of water, the crisis brought to the fore the urgent need for proactive steps to build water resilience.
Water shortages can derail operations, push up the cost of doing business, and even lead to closures, impacting the whole economy. For businesses, water resilience isn’t just about sustainability—it’s a strategic step. As corporate responsibility becomes more closely linked to long-term profitability, a commitment to sustainable water use can strengthen a company's reputation and competitive advantage.
Improving water resilience requires a multi-pronged approach. Businesses need to invest in water-efficient technologies, such as upgrading infrastructure to reduce waste, recycling wastewater, and adopting water-saving practices. The agricultural sector, a major water consumer in South Africa, can benefit from precision irrigation techniques that optimise water use and minimise waste.
Collaboration with the government on water governance is just as important. The private sector can support water management policies by participating in dialogues, backing conservation initiatives, and investing in projects that boost water security. Public-private partnerships, like those set up during Cape Town’s water crisis, have proven effective in mobilising resources for alternative water sources such as desalination and groundwater extraction.
Towards Water Resilience
Looking at global best practices can also offer valuable lessons. For example, Australia, after facing severe droughts, introduced wide-ranging water management reforms and adopted water markets for buying and selling water rights. This approach has promoted more efficient water use and better allocation. In similar fashion, Singapore has achieved water security despite limited natural resources by combining conservation, technology, and innovative policies. Its methods include extensive water recycling, desalination, and integrating water management into urban planning, creating a resilient water supply system that supports both economic growth and quality of life.
Recently, Wesgro and GreenCape hosted the annual Business Outlook event themed "Towards Water Resilience," bringing together public and private stakeholders to discuss strategies for improving water security. The event also introduced the CEO Guide to Water Resilience, a detailed document offering best practices and practical advice, such as setting water use targets, implementing onsite water reuse, and exploring alternative sources like rainwater harvesting and desalination.
The "Day Zero" crisis, which led to at least R15 billion in economic losses, made it clear how urgent the need for water resilience is. Despite recent heavy rains and full dams in Cape Town, we can’t be complacent—we need to start planning now for a water-secure future. At the event, speakers emphasised the economic and social importance of water and suggested practical steps businesses can take, like setting up water reuse systems and working together within the water sector. The focus now must shift from discussion to action, ensuring the implementation of strategies that bolster water resilience.
It’s encouraging that the national government recently emphasised the need for increased private sector investment in the water sector, following a model similar to that in the energy sector. This initiative aims to improve water security and prevent shortages. With climate change expected to worsen droughts, infrastructure projects—like managing surface and groundwater, desalination, and water reuse—are crucial. But reducing water demand is just as important; without careful management, demand could outstrip supply by 2030, even with expanded infrastructure.
South Africa’s average water consumption of 218 litres per person per day is significantly higher than the international average of 173 litres, as pointed out by Sean Phillips, Director General of the National Department of Water and Sanitation. This highlights the urgent need for better conservation efforts. Cutting down on consumption is essential for ensuring a sustainable water supply in the long run.
Achieving water resilience will require deliberate and calculated steps, and innovation. For example, the CEO Guide shows how Virgin Active, the renowned health club chain, reduced water usage by 62% across 30 Western Cape branches by retrofitting and using alternative water systems, with a 20-month payback on their R24 million investment. Similarly, Growthpoint Properties’ Estuaries office park in Cape Town achieved 70% water savings by installing smart meters that enabled quick leak repairs.
At the Business Outlook event, André Theys from the V&A Waterfront shared plans for a new desalination plant that could greatly ease Cape Town’s freshwater demand by supplying 80% of the precinct’s water needs. To meet the energy needs of desalination, the V&A will use power from a waste-to-energy plant and expand its solar PV programme. These initiatives could inspire more businesses to develop strategic water resilience plans.
The City of Cape Town is also working hard to diversify and expand its water supply through the New Water Programme, which includes major investments in water and sanitation projects. These efforts are part of a larger plan to make Cape Town a global leader in water resilience, with public-private partnerships playing a crucial role.
In South Africa, where there is a yawning gulf between rich and poor and high unemployment, ensuring water resilience is key for both economic growth and social stability. A water-secure nation allows businesses to flourish, drives job creation, supports healthy lives, and safeguards the environment for future generations.
Stander is CEO of Wesgro, the official agency for promoting trade and investment in Cape Town and the Western Cape.
*This article was first published by News24