By Akani Nkuna
The Department of Water and Sanitation (DWS) has welcomed consolidated and intensified revenue collection efforts by water boards, which saw revenue increase to R43.7 billion in the 2024/25 financial year, saying the improvement will bolster government efforts to address prevailing water challenges across the country.
Chief Director at DWS Thoko Sigwaza presented an overview of water boards’ performance for 2024/25 to Parliament’s Portfolio Committee on Water and Sanitation on Tuesday.
Five of the seven water boards achieved more than 88% of their revenue targets, exceeding benchmarks.
The bulk of revenue was collected by Rand Water (R22.9 billion), followed by uMngeni-uThukela Water (R7.6 billion).
Sigwaza said struggling boards had implemented turnaround strategies to improve collections.
She said capital investment totalled R6.1 billion for the year. Two key projects by Rand Water — the Emfuleni and Zanzibar Water special purpose vehicles — were approved and operationalised.
uMngeni-uThukela continued with an innovative waste-to-energy project at the Darvill Wastewater Treatment Works and maintained support to eThekwini Municipality on wastewater treatment operations.
Sigwaza said growth and development strategies were being advanced at struggling boards, including Overberg Water, Magalies Water and Lepelle Northern Water, with the aim of achieving full coverage in their areas of operation.
Most boards maintained compliance with South African National Standards for drinking water quality, although two faced operational risks linked to ageing and inadequate infrastructure.
Water supply performance improved overall, except at two boards that failed to meet targets due to Eskom power outages in their areas of operation.
Sigwaza said total volumes produced during the year amounted to 2.8 billion kilolitres, generating consolidated revenue of R43.6 billion. Most boards ended the financial year in surplus, except Amatola Water, which recorded an operational deficit.
However, she raised concern over escalating municipal debt to water boards, which stood at R25.5 billion in December 2025. Seventeen municipalities — including Matjhabeng, Emfuleni and King Cetshwayo — each owe more than R200 million, a situation she described as a major impediment to service delivery.
Irregular expenditure increased sharply to R3 billion from R2.2 billion in 2023/24. Fruitless and wasteful expenditure declined from R502 million to R300 million over the same period.
Sigwaza said current financial ratios enable boards to meet short-term liabilities.
She told the committee that shortcomings in project management and planning require urgent remedial action through capacity enhancements.
Addressing irregular expenditure, she said, would unlock improved borrowing capability and help resolve many of the challenges facing the department.
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