Scaling water access to all is not just about building more pipes – it’s about reimagining how things are done and financed and how outcomes are measured, according to Rand Water Group CEO Sipho Mosai.

‘At Rand Water, we remain steadfast in advancing sustainable water management and innovation. We are investing in modern infrastructure, strengthening partnerships and building the skills required to meet future challenges,’ he says.

Rand Water is a bulk water utility that was established in 1903. It currently serves at least 18 million people across four South African provinces, and its network spans an area of more than 37 000km².

In South Africa, the provision of water services has become a crucial lifeline amid rapid urbanisation, population growth and the relentless effects of climate change. As cities swell and the demand for clean water surges, the need for resilient infrastructure and adept management of water resources has never been more urgent.

Under Mosai’s leadership, Rand Water has embarked on a series of infrastructure developments, culminating in the opening of Station 5A of the Zuikerbosch Water Purification Plant in August 2025. Located in Gauteng province, it can supply 600 million litres of clean water a day. ‘This project stands as a proud symbol of our shared determination to secure South Africa’s water future. It represents not only an engineering achievement but also a commitment to service delivery, resilience and equity. Every litre purified here reflects the collective effort of government, engineers, scientists and communities working together to ensure that clean water – the foundation of life, health and economic growth – reaches every household, business and institution in our region,’ he says.

Projects such as Zuikerbosch significantly enable Rand Water to expand water supply and safeguard the organisation’s capacity to provide reliable water – helping its municipal customers meet demand, mitigate risks of shortage and improve reliability. They also represent engineering scale, innovation and forward planning in anticipation of future demand and climate stresses.

‘It is vital that society as a whole acknowledges that – despite great effort – severe water challenges persist, posing a threat not only to humankind but to all species in the environment,’ says Mosai.

Under Mosai’s tenure, immense effort has been made to secure the maintenance of a strong financial profile of the organisation amid economic challenges and a tough operating environment, ensuring that liquidity and financial risk management remain the cornerstones for Rand Water’s financial sustainability.

The organisation’s focus on maintaining financial health can be witnessed in revenue growth of 11.4% to ZAR21.8 billion in its latest financial year, driven by cost-reflective tariffs and volume growth.

Furthermore, there has been a gross income growth of 15.3% to ZAR7 billion while maintaining a gross income margin above 30% year on year through a dedicated focus on cost efficiencies.

This translates to a solid bottom line with net income growth of 29% in 2024 to ZAR4.562 billion (2023: ZAR3.536 billion) and a net income margin of 20.9% further boosted by returns on strategic investments.

Rand Water’s financial stability was underpinned by the organisation’s ability to successfully redeem the RW21 bond with a total nominal amount of ZAR1.6 billion in April 2021 and the RW23 bond in December 2023 at a nominal amount of ZAR1.2 billion. The successful settlement of these bonds has demonstrated Rand Water’s financial strength and financial stability, he says.

Rand Water’s financial sustainability was further demonstrated by the issuance of three new bonds on 30 June 2021, in senior and sustainability-linked notes amounting to ZAR1.7 billion. The issuance of the bonds attracted more than ZAR4.5 billion in capital market bids – a solid indication of confidence in Rand Water’s financial status by the investor community. The organisation is the first South African state-owned entity to issue sustainability-linked bonds in Africa, the single-largest ZAR-denominated sustainability-linked bonds to be issued then. In March 2022, Rand Water won the Bonds & Loans Africa Awards in relation to its sustainability-linked bonds.

Rand Water’s financial achievement, strength and resilience show that even state-owned entities can be fiscally sustainable, attract investor confidence and fund large infrastructure without always relying on bailouts, according to Mosai.

‘Rand Water’s operational activities impact the environment, people and broader society,’ says Mosai. ‘We, therefore, have a responsibility to reduce our negative impacts, increase our positive impacts and create sustainable benefits for our internal and external stakeholders.’

The UN’s Sustainable Development Goals (SDGs) aim to eradicate poverty, safeguard the environment and promote peace and prosperity by 2030. ‘As the provider of bulk potable water and sanitation services, Rand Water directly supports [SDG] Goal 6, which aims to ensure available and sustainable management of water and sanitation for all, while other SDGs are indirectly supported through our core activities,’ says Mosai.

In line with SDG Goal 6, Rand Water provides a reliable supply of water with no unplanned interruptions to bulk supply exceeding 24 hours. It has achieved 99.7% on the Water Quality Composite Indicator and continues to implement infrastructure projects to ensure transportation of safe drinking water.

Rand Water’s SDG contribution also includes Goal 5 (gender equality), with 43% of its employees and 76% of its managers being female; Goal 8 (decent work and economic growth), with 3 027 jobs created through the Rand Water Foundation and other infrastructure projects; Goal 12 (responsible consumption and production), through its Project 1600 programme to improve water use efficiency; and Goal 13 (climate action), through ongoing improvements in its energy efficiency and reduction of its carbon footprint.

The Water Wise campaign, a sub-brand of Rand Water, is committed to educating and influencing stakeholders on the value of water and the importance of its conservation. Water Wise is also responsible for educating stakeholders about efficient water use and water-demand management.

Rand Water’s Water Wise Education Team offers an education service to organisations at external venues to assist them with a variety of Water Wise programmes. These include educator workshops, interactive presentations, roadshows and puppet shows. Water Wise uses interactive methodologies to promote the reduction of wasteful water use, the prevention of water pollution and the protection of water sources, aiming to create a sustainable future for all.

Despite its accomplishments, Rand Water is not resting on its laurels, says Mosai.

‘The toughest tests lie ahead with climate strain, weak municipal financial systems and non-payment of bulk water utilities. Hard work and innovation in Rand Water’s value chain need to be used as motivation by municipalities to reticulate the water they receive from Rand Water to taps for the benefit of communities,’ he says.

Rand Water remains focused on its path of creating a ‘Rand Water of the future’, according to Mosai.

‘The setting of strategic goals will effectively guide the organisation over the next five years, providing a clear and decisive direction for us. There are ongoing water challenges within our supply region, primarily driven by a demand that far surpasses the licensed abstraction volumes, as set by the Department of Water and Sanitation.

‘Rand Water views these challenges as opportunities to innovate and introduce sustainable solutions to secure the long-term availability of this vital resource. Therefore, the implementation of water conservation and demand management strategies is essential, alongside the adoption of advanced solutions aimed at optimising operations, minimising water loss and improving efficiencies across the entire water value chain.’

Mosai says the legacy Rand Water is building is one of resilience, innovation and inclusive water provision.

By Kerry Dimmer
Image: Supplied