Cape town: The South African government is accelerating reforms in the water sector, including plans to establish an independent economic regulator and a national infrastructure agency, Deputy Minister of Water and Sanitation David Mahlobo said on Tuesday. Speaking at the Africa Water Supply and Sanitation Regulators Conference in Cape Town, Mahlobo stated that these reforms align with the National Development Plan 2030, the National Infrastructure Plan 2050, Operation Vulindlela, and broader state reform initiatives focused on strengthening institutional capability and infrastructure delivery.
According to South African Government News Agency, one of the pivotal reforms involves the creation of an Independent Economic Regulator for the water sector, which is currently in progress. This regulator aims to enhance tariff oversight, improve transparency and accountability, support evidence-based benchmarking, increase investor confidence, and ensure the long-term sustainability of the sector. Mahlobo emphasized that the goal is not merely to regulate prices but to create a fair, credible, and predictable regulatory environment that balances consumer affordability with the financial sustainability needed to maintain and expand infrastructure.
Mahlobo acknowledged the complexities involved in institutional reform, citing the need for policy coherence, technical expertise, stakeholder alignment, and continuous learning. He highlighted the significant role that the Eastern and Southern Africa Water and Sanitation Regulators' Association (ESAWAS) plays in this regard. He praised ESAWAS, the conference organizer, for fostering regulatory cooperation across Africa and investing in professional capacity-building, technical skills development, and institutional learning.
The Deputy Minister noted that regulation requires specialized competencies in areas such as engineering, economics, governance, finance, law, environmental management, and public policy. Through training programs, benchmarking systems, and peer learning platforms, ESAWAS is contributing to the development of the next generation of African regulatory professionals and strengthening the institutional framework necessary for effective governance. South Africa has benefited from this partnership through technical exchanges, benchmarking initiatives, and knowledge-sharing engagements with other African countries.
Another major reform underway is the establishment of the National Water Resources Infrastructure Agency, which aims to enhance the country's ability to finance, develop, manage, operate, and maintain strategic national water infrastructure. Mahlobo stressed that infrastructure investment is crucial for achieving water security and expanding access, warning that without it, economic growth and universal service delivery cannot be sustained. He also highlighted legislative reforms being pursued through amendments to the National Water Act and the Water Services Act.
These amendments seek to improve equitable water allocation, governance arrangements, resource protection, accountability mechanisms, and institutional performance across the water value chain. The reforms introduce operating licenses for water services providers, marking a significant regulatory shift. This ensures that institutions responsible for delivering water and sanitation services have the necessary technical, financial, governance, and operational capabilities to fulfill their mandates effectively. Operating licenses also strengthen enforcement capacity by preventing persistent non-compliance, maladministration, and institutional failure.