South Africa’s catchment management agencies (CMAs) are becoming central to the country’s water sector while they confront intensifying pressure from climate variability, rising demand, ecological degradation, pollution and financial constraints.

Annual Performance Plan (APP) presentations delivered to Parliament’s Portfolio Committee on Water and Sanitation by multiple CMAs, including the Limpopo-Olifants Catchment Management Agency (LOCMA), the Inkomati-Usuthu Catchment Management Agency (IUCMA), the Vaal-Orange Catchment Management Agency (VOCMA), the Pongola-Umzimkulu Catchment Management Agency (PUCMA), the Breede-Olifants Catchment Management Agency (BOCMA), and the Mzimvubu-Tsitsikamma Catchment Management Agency (MTCMA),  collectively reveal institutions attempting to operationalise a decentralised water governance model under increasingly difficult conditions.

The presentations outline expanding responsibilities in water use licensing, pollution prevention, ecological restoration, stakeholder engagement, revenue collection, climate adaptation and regional cooperation. At the same time, they expose deep structural pressures facing the sector, including growing water deficits, escalating operational costs and the need for stronger enforcement and institutional capacity.

Together, the APPs provide one of the clearest pictures yet of how South Africa’s regional water management system is evolving, despite facing similar issues around financial stability that plague the water sector.

A decentralised system under pressure

South Africa’s CMAs were established under the National Water Act to decentralise water governance and move decision-making closer to the catchment level.

The Mzimvubu-Tsitsikamma Catchment Management Agency described itself as a water management institution established under Section 78 of the National Water Act and operating as a Schedule 3A public entity funded through parliamentary grants and water resource charges.

Its mandate includes:

• Protecting and conserving water resources;
• Compiling Catchment Management Strategies (CMS);
• Coordinating water users and water management institutions;
• Promoting implementation of development plans;
• Supporting community participation in water governance.

LOCMA’s presentation similarly described CMAs as mechanisms to ensure equitable access, sustainable utilisation and efficient management of water resources while involving local stakeholders in governance processes.

VOCMA stated that its mission is to ensure equitable access to ample, quality water for all through integrated water resource management.

PUCMA’s strategic framework is similarly centred on sustainable, equitable and secure water resources for all.

The APPs indicate that CMAs are increasingly functioning as integrated governance institutions responsible not only for hydrological management, but also for economic coordination, environmental protection, stakeholder relations and institutional transformation.

Water scarcity and imbalance intensify

Across the presentations, water scarcity and regional imbalance emerged as dominant concerns.

LOCMA warned that the Limpopo-Olifants Water Management Area is already experiencing demand levels that exceed available water supply in several sub-catchments.

The agency estimated registered annual water use volumes at approximately 3.77 billion cubic metres against available yield volumes of around 2.8 billion cubic metres.

To offset deficits, approximately 500 million cubic metres of water are transferred annually from the Orange-Senqu Basin.

The economic implications are significant. LOCMA noted that the Olifants catchment contributes approximately 5% of South Africa’s GDP while supporting mining, agriculture, power generation and heavy industry.

PUCMA similarly acknowledged mounting pressure within its own systems, stating that although the broader water management area still maintains a positive overall balance, “demand in many areas outstrips the yield, indicating a degree of water stress.”

The agency noted that reconciliation strategies and national water balance assessments have identified increasing supply challenges, prompting prioritisation of updated water balance studies and intervention planning.

MTCMA’s catchment profile illustrates the complexity of water management in the Eastern Cape. The agency operates across a vast 168 966 km² region supporting approximately 7.2 million people, with economic activity heavily dependent on agriculture, tourism, forestry and growing agro-processing sectors.

Its revenue profile reflects the agricultural dominance of the region:

• Agriculture accounts for 70% of raw water revenue.
• Local government water services contribute 25%
• Commercial forestry contributes 4%
• Other users contribute 1%

The agency also highlighted the extent to which regional industries rely on municipal infrastructure services, underscoring the interdependence between water governance and broader infrastructure stability.

Ecological restoration and pollution control expand

Environmental rehabilitation and pollution management are becoming increasingly central to CMA operations.

IUCMA currently manages one of the country’s largest monitoring systems, including:

• 269 surface water quality sites;
• 31 river flow sites;
• 25 rainfall stations;
• 12 groundwater monitoring sites;
• 25 ecological water requirement sites;
• 10 international obligation monitoring points.

Its targets for 2026/27 include implementing 75% of the Waste Discharge Charge System and taking enforcement action against at least 95% of non-compliant users.

MTCMA has similarly prioritised pollution control and ecological protection.

Its performance targets include:

• Implementing at least 90% of its waste discharge charge strategy
• Processing 85% of high-risk water use licence applications within 74 working days
• Monitoring water users for compliance
• Responding to 80% of pollution incidents within 48 hours
• Monitoring 139 strategic water quality points annually

The agency also plans to implement River Eco-status Monitoring Programmes across 16 rivers while developing a Catchment Management Strategy for gazetting.

PUCMA’s planned projects between 2026 and 2029 include major river rehabilitation interventions in the Ncandu, Ngagane and Mgeni systems.

These projects will involve:

• Riverbank stabilisation
• Erosion control
• Ecological rehabilitation
• Water quality restoration

The agency also plans extensive water resource assessment studies across the Usuthu-to-Mhlatuze and Thukela WMAs to support drought response, licensing and sustainable allocation planning.

BOCMA has allocated over R30 million towards water resource management initiatives, including alien vegetation clearing, water quality testing and public engagement programmes.

Collectively, the APPs indicate that ecological restoration is increasingly being treated not as a secondary environmental concern, but as a core water security intervention.

Water licensing and compliance enforcement accelerate

The presentations also show growing emphasis on improving licensing efficiency and compliance enforcement.

BOCMA further aims to take enforcement action in at least 80% of non-compliance cases.

LOCMA and IUCMA have adopted similar targets, reflecting broader national pressure to address illegal water use, improve regulatory turnaround times and strengthen pollution enforcement.

The APPs suggest that water authorisation systems are becoming increasingly central to balancing economic activity with environmental sustainability.

Financial sustainability emerges as a structural risk

Despite growing responsibilities, the agencies continue facing substantial financial pressure.

PUCMA’s projected 2026/27 budget totals R149 million, of which 78.2% will come from own revenue generated primarily through water tariffs.

The agency warned that compensation costs are growing faster than revenue, with employee costs projected to increase at approximately 6.9% annually compared to revenue growth of only 0.4%.

Travel and subsistence alone account for R18.9 million, approximately 32% of all goods and services expenditure.

PUCMA also plans expenditure on:

• River health programmes
• Water resource studies
• River rehabilitation initiatives valued at approximately R8 million
• Water quality testing budgets of approximately R4 million.

MTCMA’s medium-term expenditure framework totals approximtely R420 million between 2026/27 and 2028/29. Programme allocations include:

• R180 million for administration
• R240 million for Water Resource Management

The agency expects most funding to come from water resource charges alongside parliamentary grants.

To improve financial sustainability, MTCMA said it is prioritising debt recovery through:

• Credit control enforcement
• Use of National Treasury-appointed debt collectors
• Water debt relief incentive schemes
• Intergovernmental cooperation measures

Its 2026/27 projected revenue includes:

• R101 million from water resource charges
• R32 million from parliamentary grants

Meanwhile, BOCMA has already disclosed a funding shortfall exceeding R20 million for the 2026/27 financial year.

The combined presentations suggest that financial sustainability is becoming one of the defining operational risks for South Africa’s water governance institutions.

Institutional capability and transformation remain priorities

The APPs also reveal a strong focus on organisational development, staffing and institutional transformation.

MTCMA plans to fill 90% of vacant positions while implementing new ICT, communications, audit and risk management strategies.

Its procurement targets include:

• 40% expenditure to be directed toward women-owned businesses
• 30% toward youth-owned enterprises
• 7% toward persons with disabilities

The agency additionally plans to implement extensive human resource policy reforms covering occupational health and safety, fraud prevention, employee wellness, disciplinary systems and remote work policies.

The APPs collectively suggest that CMAs are attempting to evolve into fully operational regional institutions with stronger governance systems, workforce capacity and financial controls.

Regional cooperation and strategic infrastructure remain critical

Several WMAs span international river systems, making regional cooperation increasingly important.

LOCMA operates within the Limpopo Basin shared with Botswana, Zimbabwe and Mozambique, while IUCMA manages systems linked to Mozambique and Eswatini.

PUCMA highlighted the strategic importance of the Mgeni system and the Mooi-Mgeni Transfer Scheme, both central to water security in KwaZulu-Natal.

As drought risk, climate variability and infrastructure stress intensify across Southern Africa, transboundary water governance is expected to become increasingly important.

A defining decade for South Africa’s water governance system

Taken together, the APPs illustrate a water sector entering uncharted waters where these relatively new organisations are becoming very important, very quickly.

The agencies are simultaneously attempting to:

• Improve ecological resilience
• Expand compliance enforcement
• Accelerate licensing processes
• Stabilise finances
• Strengthen governance systems
• Support economic growth
• Address climate-related risks
• Protect increasingly stressed water resources

Water demand continues to rise across multiple catchments. Pollution and ecological degradation remain persistent. Infrastructure vulnerabilities continue affecting municipalities and bulk systems. Revenue collection pressures are intensifying. Climate variability is increasing hydrological uncertainty.

At the same time, CMAs are being asked to become financially sustainable, technologically modern, operationally efficient and institutionally accountable.

The APPs suggest that South Africa’s CMAs are no longer peripheral administrative bodies. Increasingly, they are becoming some of the country’s most important institutions for balancing economic development, environmental protection and long-term national water security.