JOHANNESBURG, South Africa – Nafasi Water, a South African water infrastructure developer, has secured $9.5 million in funding from Norfund, the Norwegian development finance institution, alongside a follow-on investment from E Squared Investments.
The capital injection will accelerate Nafasi’s expansion across Southern Africa, specifically targeting mining-impacted water catchments, industrial wastewater reuse, and advanced water reclamation technologies.
Closing the infrastructure gap
Africa’s water sector remains structurally underfunded. Aging treatment infrastructure and limited capacity are increasingly strained by climate pressures, rapid urbanisation, and industrial demand. According to the 2025 Africa Water Investment Scorecard, while project planning has improved, actual investment mobilisation remains the weakest link in the value chain.
Nafasi’s model directly addresses this gap. The company develops, finances, builds, and operates treatment facilities—a project-financed water infrastructure model that offers a commercially viable pathway to improved water security.
“This investment validates our approach to treating water as an economic asset rather than a passive utility,” said Suzie Nkambule, CEO of Nafasi Water.
“By targeting mine-affected water and unlocking wastewater reuse, we are turning environmental liabilities into reliable water supplies for industrial and municipal systems.”
Strategic investor backing
Norfund, which has a mandate to build sustainable industries in developing countries, led the round. The institution has increasingly focused on climate-resilient infrastructure, with water security emerging as a priority sector in Sub-Saharan Africa.
“Nafasi has demonstrated a replicable, bankable model for water treatment in challenging operating environments,” said Carl Johan Wahlund, Norfund’s Regional Director for Southern Africa.
“Their ability to deploy advanced reclamation technologies—particularly in mining catchments—directly supports both environmental remediation and economic development.”
E Squared Investments, an existing shareholder, provided a follow-on investment, signalling continued confidence in Nafasi’s execution capacity.
“We have backed Nafasi since its early days and have seen the team deliver complex water infrastructure projects against difficult timelines,” said Gladwyn Leeuw of E Squared Investments.
“This new capital allows them to move from a pipeline of opportunities to a portfolio of operating assets.”
Waste-to-value and advanced technologies
Beyond conventional treatment, Nafasi is scaling its waste-to-value manufacturing capabilities. The company extracts high-value chemicals from waste by-products generated during treatment processes, creating additional revenue streams that improve project bankability.
This dual focus—environmental remediation and resource recovery—positions Nafasi within the broader circular water economy gaining traction across Southern Africa.
The company has previously demonstrated its model through:
- The Erongo Desalination Project in Namibia
- A partnership with Seriti Resources to treat mine-impacted water at the Arnot Closed Colliery in Mpumalanga
Regional implications
Southern Africa is one of the world’s most water-stressed regions. Mining operations, in particular, face increasing regulatory pressure to manage acid mine drainage and contaminated effluent. Simultaneously, municipalities are struggling to maintain ageing treatment works amid constrained fiscal budgets.
Nafasi’s project-finance model allows municipalities and mining houses to access new treatment capacity without large upfront capital expenditures, paying instead for treated water or treatment services over time.
Industry analysts note that this structure is critical for scaling infrastructure in markets where balance sheets are under pressure.
“The Nafasi-Norfund deal is a signal that development finance institutions are moving beyond grants and into equity-backed, performance-based water infrastructure,” commented an infrastructure finance specialist based in Cape Town. “That shift is what the sector has been waiting for.”
Outlook
With the $9.5 million capital injection, Nafasi Water expects to move a pipeline of projects into construction over the next 18 months, focusing on mining-impacted catchments in South Africa and neighbouring countries.
The company also plans to expand its advanced reclamation technology portfolio, including membrane bioreactors, reverse osmosis, and brine mining systems—all relevant to Pumps Africa readers involved in high-pressure, high-reliability water movement applications.
