South africa Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in south africa, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Environmental Technology
Last published date:

Overview

Water Scarcity South Africa is water-scarce, receiving around half of the global average rainfall. Other significant contributing factors include lack of investment in water infrastructure and technologies, uneven water distribution, weak protection of water sources, and overconsumption by businesses and residents (World Wild Fund for Nature 2025). Agriculture is the largest user of water followed by municipalities that include residential, commercial, and industrial users. In addition to scarcity, there is growing concern about the quality of both drinking and industrial water. South Africans are one of the highest consumers of water in the world, and some regions, like the Eastern Cape, are in danger of running out of water. By contrast, the East coastline, particularly the Kwa-Zulu Natal area, is flood-prone, which will intensify due to climate change, as well as inadequate infrastructure and planning.

Statistics In his 2025 State of the Union Address (SONA), President Ramaphosa acknowledged that water security represents a significant challenge for South Africa and committed his government to securing approximately R23 billion (USD1.2 billion) for large-scale water projects that will significantly contribute to South Africa’s water supply. However, according to South African Institute for Civil Engineering (SAICE), an additional R1 trillion (USD55 billion) is needed to replace and modernize the current dilapidated water infrastructure to address significant leaks and inefficiencies, and to prevent further escalation of this crisis. Demographic growth and increased rates of urbanization will put further pressure on water resources. According to the 2030 Water Resources Group, South Africa will use 17 percent more water by 2030.

On December 5, 2023, the Department of Water and Sanitation (DWS) released its latest Blue Drop report, which examines the state of South Africa’s potable water. Around 46 percent of drinking water was microbiologically unsafe at the time of sampling in 2022, thereby increasing the risk of water-borne diseases. Potable water in the major cities is still considered safe. The report also showed that 47 percent of tap water is considered non-revenue due to faulty infrastructure such as leaking and broken pipes, illegal connections, incorrect billing systems and implementation, as well as inefficient revenue collections by municipalities. DWS plans to release its next report at the end of 2025, which will cover the 2023/2024 audit cycle for the municipalities. The need for new technology in this sector presents good opportunities for U.S. exporters.

The Johannesburg area, considered to be South Africa’s economic hub, has suffered thousands of water cuts across the city, and there is concern that the system is close to collapse. Water outages are frequent, with some areas experiencing outages for days at a time. Johannesburg Water recently announced that 42 of their reservoirs are leaking (half of their existing fleet), water loss due to leaks currently stands at 25 percent. Funding remains limited, with available budget to fix around 495 miles of the city’s estimated 7,456 miles of water pipes.

Water and Wastewater Management Water treatment equipment includes membrane separation technology (the most popular method as it uses osmotic pressure rather than relying on external pressure), biological-, disinfection-, and sludge treatment. The process of treating water and wastewater mainly is by removing heavy particles and floatables from effluent. Water is separated from wastewater via a filtration process. This method is deemed the most cost-effective in South Africa. There are approximately 1,050 wastewater treatment works in the country, with municipalities mostly responsible for water and wastewater treatment for both industrial- and residential purposes.

Solid Waste Management Each year, South Africa produces more than 6 million tons of general waste. Around 30 percent is recycled, and the remainder disposed of in landfills, dumpsites, or in the environment. One in ten households does not have proper access to adequate waste collection services, and the situation is further exacerbated in rural and peri-urban communities. Landfills are at or over capacity, and lack of space is a growing concern. Services are provided by local municipalities who are underfunded, and often poorly managed; as well as private companies, and informal waste collectors who form a vital, but underappreciated role in the waste economy. Several landfill sites operate illegally, or without license.

Opportunities

Limpopo The Mokolo Crocodile Water Augmentation Project (Phase 2A) aims to increase water supply in the Lephalale region of the Limpopo Province. The water generated through the initiative will be used as a second source for the Medupi and Matimba Power Stations and will also help meet the growing demand for water in the Lephalale Municipality. The proposed investment value of the project is R12.4 billion (USD 720 million) and the investment period is five years. This project phase aims to be completed by May 2026.

Other areas of opportunity include:
•    Smart metering and monitoring, water-efficient technologies, water reuse technologies, alternative water treatment systems, and water augmentation opportunities such as wastewater reuse and desalination
•    Bulk water transfer projects, which provide opportunities to leverage new technologies.
•    Construction of new dams and irrigation programs
•    Clean water and sanitation
•    Leak detection technologies
•    Industrial and commercial sectors that are water intensive such as the food and beverage sectors
•    Municipal level projects
•    Household organic waste composters

Most of these water projects are through the different municipalities and would require a tender process. Other sub-sector prospects in the EnviroTech sector include:
•    Waste treatment projects
•    Organic waste treatment
•    Pollution and air control
•    Solid waste management

Resources
 
Key Contacts
Department of Human Settlement, Water, and Sanitation (DWS)
Water Research Commission
Water Institute of Southern Africa (WISA)
Rand Water - South Africa

For More Information
The U.S. Commercial Service Commercial Specialist for the Envirotech Sector in Cape Town, South Africa can be contacted via e-mail at:
Felicity.Nagel@trade.gov

Phone: +27 21 702 7363
or visit our website: https://www.trade.gov/south-africa/

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility