The Bremen Overseas Research & Development Association (Borda) recently hosted a sanitation dialogue, as part of their annual Sanitation Breakfast Seminar, where experts from government, development finance institutions, the private sector and NGOs debated why innovative and water-efficient sanitation solutions (WESS) remain sidelined despite urgent need.

Professionals agreed that money is not the main barrier to innovative sanitation in South Africa. Instead, municipalities struggle with capacity, governance, and institutional reforms that prevent new technologies from moving beyond pilot projects into mainstream service delivery.

“It can no longer be business as usual. South Africa’s sanitation sector is in crisis. Aging infrastructure, rapid urban migration, and poor maintenance have left many wastewater treatment works non-compliant, while informal settlements continue to rely on unsafe or inadequate facilities. Open defecation persists in some urban and rural areas, creating severe public health and environmental risks. Although South Africa will not meet Sustainable Development Goal 6 (SDG 6), every effort must be made to get as close to the target as possible,” says Alvin Anderson, country director, Borda South Africa.

“We need innovative funding beyond donor reliance, such as blended finance and return-on-investment models that reuse treated effluent. There is a willingness to pay for sanitation services within informal settlements, we have experienced this in Durban.

Barriers to WESS adoptions

According to Nonhla Tau, specialist: Water and Sanitation at South African Local Government Association (SALGA), a key barrier to innovative sanitation solutions is limited capacity.

“There are ongoing initiatives to train and equip municipalities on sanitation technologies. However, many still lack the ability to develop clear business cases, which makes it difficult to secure funding. Sanitation involves multiple government departments – from Human Settlements and Water and Sanitation, to Cooperative Governance, SALGA and Municipal Infrastructure Support Agency (MISA) Professionals across these institutions must be equipped with technical knowledge, financial modelling skills, and practical planning tools to evaluate, package and implement projects that demonstrate long-term viability to funders.”

Another barrier is regulations. The Public Finance Management Act (PFMA) and Municipality Finance Act (MFA) are designed to curb corruption, but inadvertently stifle the adoption of new technologies because procurement frameworks are rigid and risk-averse.

“However there are contain provisions in these acts that can be used to adopt new technologies. The challenge is that these sections are seldom explored. With the right legal and technical expertise, municipalities can create space for innovation while still complying with governance requirements,” explains Thabo Kabini, senior specialist: water infrastructure, Industrial Development Corporation (IDC).

He also noted that governance failures and weak project packaging make municipalities high-risk partners. If a municipality has a history of corruption or failed delivery, it creates red flags.

Lungiswa Biyela, utility partnerships senior advisor, WaterAid (UK) adds that there is an absence of dedicated budget lines for innovation in municipalities. “The water and sanitation department will compete, for example, with the roads department for budget, and then there is further competition within the water and sanitation department for budget. Innovation more often than not takes a back seat.”

Furthermore, decisions are often made at CFO level, where the priority is balancing rates and electricity revenues rather than trialling sanitation alternatives. Centralised procurement further undermines technical decision-making, resulting in wastewater treatment plants that meet tender specifications but fail to deliver compliant effluent.

Speakers urged a paradigm shift: investing not only in infrastructure, but in sustainable sanitation services. “Many sanitation projects are built but never provide a decent service. There is no regulation in South Africa that forces an entity to maintain infrastructure.” Without proper operation and maintenance (O&M), even well-designed plants fail within months. Yet O&M is seldom institutionalised or regulated. Asset management frameworks and stronger accountability for service delivery were identified as essential reforms.

The good news

While innovation and funding may often appear at odds – with financiers demanding proven track records and innovators pushing untested solutions – there are mechanisms available to bridge this gap. The DBSA manages instruments like the Green Fund, provides project preparation facilities, and assists with creating blended finance models that de-risk projects and attract private-sector co-funding. These tools create space for municipalities and innovators to pilot technologies while giving funders confidence in their long-term sustainability. There is also a branch at MISA that supports municipalities in creating bankable projects.

The Water Research Commission (WRC) also plays a vital role in de-risking innovation by funding early research and demonstration projects. However, uptake often only occurs during crises, leaving promising technologies underutilised.

“Johannesburg Water has recognised that many solutions to problems in the water sector lie in innovation. We therefore decided to create a research, development and innovation unit to foster and drive the use of technology for efficient operations. Wherever there is a business case for a certain innovation, we try to allocate any possible resources towards it,” comments Dr Zakhele Khuzwayo, manager: innovation and technology, Johannesburg Water.

The revised norms and standards will promote the adoption of WESS. While new developments may still connect to existing sewer networks where capacity allows, they will be required to invest in decentralised or non-sewered alternatives in areas where capacity is limited.

The dialogue underscored that solving South Africa’s sanitation challenge requires more than capital. There is a dire need to normalise practices such as decentralised wastewater treatment, rather than branding them as ‘alternative.’ It calls for political will, professionalisation, stronger partnerships, and regulatory reforms that empower municipalities to adopt water-efficient sanitation solutions at scale. Above all, citizens need to value sanitation services and be willing to pay for them. The technology exists. The funding exists. What is missing is the bridge between innovation and implementation.