The Western Cape Department of Environmental Affairs & Development Planning (DEA&DP) has published the 2025 regional water market intelligence report (MIR) identifying key developments in the water sector.

“The key findings from the MIR’s supports the Western Cape Government’s vision of a green province where economic opportunities, a healthy natural environment and sustainable food production are not competing with one another but are complementing one another and stimulating growth,” said Minister Anton Bredell, Western Cape Minister of Local Government, Environmental Affairs and Development Planning.

The report, developed in partnership with GreenCape, highlights the most promising investment opportunities in the water sector in the Western Cape.

Download full report here:

Two key investment opportunities highlight the following:

1. Localisation of manufacturing

South African metropolitan municipalities are investing in water, wastewater treatment, sanitation, and stormwater infrastructure, providing promising opportunities for businesses in these areas. The combined metropolitan municipalities’ planned water and sanitation infrastructure spend over the medium term (2024/2025 – 2026/27) is approximately R54.6 billion, of which R22.4 billion is planned by the City of Cape Town. Collectively, the other Western Cape local municipalities are planning to invest ~R7.7 billion in water infrastructure over the same period.

The water value chain components which present the biggest opportunities for localisation are mechanical hardware relating to wastewater treatment works and pumps. Opportunities for the plastic pipe market (HDPE pipes) will also be further unlocked within the next 10 years as municipalities are now in the position to replace their water distribution systems due to the current asbestos pipes reaching end-of-life.

2. Innovative financing models

The Water Services Infrastructure Grant (WSIG) and Regional Bulk Infrastructure Grant (RBIG) allocations to local municipalities in the Western Cape over the next three years is expected to be well below R2 billion. Municipalities that have not built up a substantial capital reserve to fund projects will rely on external loans for project implementation.

There is an increase in project preparation support and available development finance linked to impact and sustainable development goals. These programmes include the Sustainable Infrastructure Development and Financial Facility (SIDAFF) and the Water Partnerships Office (WPO), both aiming to assist municipalities in building a pipeline of bankable projects.

GreenCape’s support to businesses and investors

Through close working relationships with businesses, investors, government, and academia, GreenCape’s sector desks are in a unique position to collect, create, and disseminate free market intelligence on the green economy.

Get in touch to explore these investment opportunities in greater depth:

• Email: info@greencape.co.za
• Phone: +27 21 811 0250