South Africa’s strategic water catchments are being thrown a ZAR2 billion lifeline.

Rand Merchant Bank and the Development Bank of South Africa (DBSA) are preparing to issue a five-year bond to finance water conservation projects in the country, which is facing worsening water shortages.

Reuters reports that the outcome-based facility will link returns to measurable environmental improvements.

‘The facility will support conservation of water catchments to ensure the health of these areas,’ DBSA climate finance specialist Mookho Mathaba.

Targeted projects include the removal of invasive plants and the rehabilitation of catchment areas to enhance water security. The bond will emphasise nature-based solutions.

A DBSA study estimates the water sector needs investments totalling ZAR256 billion a year ⁠to 2050, leaving a funding gap of ZAR91 billion a year.

10 March 2026
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