More recently, Johannesburg has struggled with water supply disruptions, leaving many residents without access to water. These crises highlight the urgent need for improved water management, infrastructure investment and conservation efforts to prevent possible future shortages. 

In order to address the current water infrastructure concerns at a national level, the South African National Water Resources Infrastructure Agency SOC Limited Act 34 of 2024 (Water Resources Infrastructure Agency Act) was approved by President Cyril Ramaphosa on 7 August 2024, however the act only came into effect on 7 February 2025.

The purpose of the Water Resources Infrastructure Agency Act is to establish a state-owned company to efficiently develop, operate and manage national water resources infrastructure in line with constitutional mandates and national policy. It also ensures continuity of the functions currently being performed by the Trans-Caledon Tunnel Authority (TCTA) and supports Government’s broader development and transformation objectives.

Given the significant water supply and water shortage issues which have been experienced in major metropolitan areas in South Africa recently, it is important to highlight the following pertinent provisions of the Water Resources Infrastructure Agency Act:

Establishment of the South African Water Resources Infrastructure Agency

The Water Resources Infrastructure Agency Act provides for the establishment of the South African Water Resources Infrastructure Agency (Agency) as a state-owned company, to be incorporated under the Companies Act 71 of 2008 and listed as a Schedule 2 major public entity under the Public Finance Management Act 1 of 1999 (PFMA). The Agency will be responsible for the development, operation, maintenance and funding of national water resources infrastructure. It is further mandated to act in the public interest, promote the efficient management of water infrastructure, and align its functions with national water and economic development objectives.

Functions of the Agency

The Agency has several key functions outlined in section 6 of the Water Resources Infrastructure Agency Act, which include:

• Strategic planning: The Agency is required to develop a five-year strategic plan to ensure the sustainable, equitable and reliable management of national water resources infrastructure. This plan must align with national policies and be approved by the Minister of Water and Sanitation (Minister).
• Water infrastructure management: The Agency is responsible for the provision, operation and maintenance of national water resources infrastructure, ensuring that its operations align with national development goals, including addressing climate change risks.
• Funding and finance: The Agency must secure funding and manage water use charges in accordance with national water legislation.
• Skills development: The Agency must attract, retain and develop skilled personnel to effectively carry out its mandate.
• Water supply: It is tasked with ensuring the efficient supply of water to all users while creating job opportunities that align with the objectives of national development plans.
• Asset management: The Agency is responsible for managing an asset inventory system for national water infrastructure and ensuring the safety of dams.
• Legal functions: The Agency is authorised to enter into agreements, perform legal acts, and acquire property as necessary to fulfil its mandate.
• Additional functions: The Agency may provide support services to water management institutions and authorities, subject to adequate financing arrangements.
• International operations: The Agency may operate outside South Africa, provided it fully recovers the costs associated with such activities.

The Agency’s actions must align with national water policy, be customer-focused and meet constitutional and social responsibilities. It must also take over the functions of the TCTA, promote projects that address social needs, and facilitate financing for these projects.

Transfer of national water resources infrastructure and disestablishment of TCTA

The Water Resources Infrastructure Agency Act sets out the legal framework for the transfer of national water resources infrastructure to the newly established Agency. It provides for the comprehensive transfer of assets, liabilities, water use agreements and related responsibilities from the Department of Water and Sanitation to the Agency. Critically, the Agency Act mandates the disestablishment of the TCTA, with all its functions and powers to be transferred to the Agency in a phased approach. This process will effectively consolidate the governance and management of national water infrastructure under a single state-owned entity to enhance efficiency and long-term sustainability.

The Minister is required to specify a date, published in the Government Gazette, within 12 months of the Agency’s establishment, or within a longer period if an extension is granted, for the transfer of assets, liabilities, water use agreements and related responsibilities from the TCTA to the Agency.

Recent developments

The Minister intends to introduce to Parliament the proposed amendments to the Water Resources Infrastructure Agency Act and the PFMA, which seeks to provide for the listing of the Agency in terms of Schedule 2 of the PFMA and the delisting of the TCTA from Schedule 2 of the PFMA. These preliminary steps confirm the initial progress that has been achieved in establishing the Agency.

Conclusion

The establishment of the Agency is a critical step towards enhancing the management, operation and maintenance of national water resources infrastructure. By consolidating functions under a single state-owned entity and ensuring alignment with national development and policy objectives, the Agency is poised to play a key role in securing South Africa’s water future at a national level. However, to truly secure South Africa’s water future, the distribution of water by municipalities to end users must be significantly improved. While the Agency addresses one critical aspect, the ongoing challenges of aging municipal water infrastructure, inadequate maintenance and rising demand will continue to hinder water security unless municipalities also take responsibility for upgrading and maintaining the systems and infrastructure which they remain responsible for. While the establishment of the Agency is a positive step forward, it cannot be viewed as the sole solution to South Africa’s water security challenges; the broader issues of municipal infrastructure and management must also be urgently addressed.