South Africa’s Department of Water and Sanitation (DWS) has announced plans to launch the National Water Resources Infrastructure Agency (NWRIA).
With a target launch date set for April 2026, NWRIA is envisioned as a consolidated entity that will centralize the development, operation, and maintenance of South Africa’s bulk water infrastructure the agency aims to streamline fragmented functions currently spread across the DWS, the Trans-Caledon Tunnel Authority (TCTA), and the Water Trading Entity.
Once operational, the agency will be empowered to raise capital on its balance sheet to drive large-scale infrastructure investment. The Chairperson of the committee, Mr. Leon Basson, welcomed the initiative but emphasized the importance of embedding strong risk management and financial oversight into the agency’s operational model.
“While we acknowledge the benefits of consolidating water infrastructure management, it is critical that systems are in place to ensure efficiency, sustainability, and revenue collection through water sales,” he said.
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Objective
A key objective of the NWRIA is to address the growing concern that South Africa’s public budget is insufficient to meet the rising demand for water infrastructure development. The agency is expected to unlock private and blended financing, with the goal of tripling annual investment levels.
During the briefing, the DWS noted that technical coordination mechanisms are already in place with the TCTA, involving work streams across governance, finance, human resources, legal, IT, and communication domains.
The department also informed the committee that the term of the current TCTA board will end in December 2025. In anticipation of the NWRIA’s launch, DWS intends to recommend an extension of the board’s term until the agency is fully operational, after which the TCTA will be dissolved.
Members of the committee expressed support for the agency’s formation but issued a strong caution against repeating the governance failures experienced by other state-owned enterprises. Concerns were also raised regarding potential risks tied to leveraging public water infrastructure as collateral, especially if the agency were to default on its obligations. However, reassurance came from TCTA’s track record, with over four decades of successful loan repayments.
Looking ahead, the Portfolio Committee pledged to expedite the finalization of the NWRIA Amendment Bill. This legislation seeks to clarify the agency’s public entity status and ensure that its financial operations are fully aligned with the Public Finance Management Act (PFMA). The committee has also requested regular updates from the department on the agency’s rollout.
Once established, the NWRIA is expected to play a central role in securing long-term water sustainability for South Africa, supporting economic growth, environmental stewardship, and equitable access to water resources across the country.