Water privatization in South Africa

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Water privatization in South Africa has taken many different forms. Since 1994 some municipalities have involved the private sector in water and saniation service provision in various forms, such as short-term management contracts, long-term concessions and contracts for specific services such as wastewater treatment. Most municipalities continue to provider water and sanitation services through public utilities or directly themselves.

In January 2001 the city of Johannesburg established the municipal company Johannesburg Water and subsequently signed a management contract with Water and Sanitation Services South Africa (WSSA), a joint venture between Suez (ex-Lyonnaise des Eaux), its subsidiary Northumbrian Water Group and the South African company Group 5. The contract was not extended when it expired in 2006.

In 2003 WSSA also had a 25- year concession in Queenstown, Eastern Cape and provided water and wastewater services to over 2 million people in the provinces of Kwa-Zulu Natal (Dolphin Coast), Eastern Cape (including in Stutterheim), Western Cape, Limpopo and Gauteng.^[1]

A private sector contracts has also been signed in Nelspruit in Mpumalanga (ex-East Transvaal). Despite the good performance of these contracts there is political reluctance to expand private sector participation in water and sanitation to other South African cities.