Building Water Resilience for Business Success and Economic Growth
Wesgro’s Business Outlook event highlights the need for businesses to integrate water resilience into their core strategies with the ‘urgency of now’ to ensure they’re future-fit.
To effectively navigate current and future challenges, water resilience needs to be a core part of any South African organisation’s business and growth strategies. This was a key takeaway from Wesgro’s annual Business Outlook event, held on Wednesday in collaboration with GreenCape, a non-profit dedicated to advancing green economy solutions.
Hosted at Investec’s offices in Cape Town, the event themed “Towards Water Resilience” convened public and private sector stakeholders to explore strategies for boosting water security. The discussions occurred against the backdrop of an increasing global focus on climate change and its impact on critical water resources crucial for economic and social development.
The event also saw the launch of the CEO Guide to Water Resilience, which offers best practice business case studies, practical recommendations like setting internal water use targets, implementing onsite water reuse, and exploring alternative water sources such as rainwater harvesting, treated effluent, and desalination—which removes salt and other minerals from sea water, making it suitable for human consumption.
The 2016–2018 drought in Cape Town dubbed “Day Zero”, which led to an estimated R15 billion in direct economic losses, brought to the fore the urgent need for water resilience to prevent similar impacts in the future.
Water resilience involves the capacity of water systems—including ecosystems, infrastructure, and communities—to withstand, adapt to, and recover from disturbances like droughts, floods, contamination, and climate change. Wesgro CEO, Wrenelle Stander, noted that since industries, especially agriculture, heavily rely on water, strengthening water resilience is essential for reducing economic losses and food insecurity.
“Long-term water resilience is crucial for companies aiming to mitigate or adapt to shocks and stresses. While resilience thinking is still emerging in many South African sectors, it's vital that businesses integrate water resilience into their core strategies, and success will require coordinated efforts, transparency, and aligned goals among all stakeholders,” Stander said.
The national government recently stressed the need to increase private sector investment in the water sector, following a model similar to that in the energy sector. This move aims to improve water security and prevent shortages.
Stander outlined the importance of collective action among government, citizens, and businesses to secure a water-resilient future. With climate change likely to intensify droughts in South Africa, she pointed out that infrastructure projects—ranging from surface and groundwater to desalination and water reuse—will be key. However, she warned that without reducing water demand, even the planned infrastructure and expanded water sources might fall short by 2030. “Demand reduction is critical,” she said.
Innovation and strategic partnerships between the private sector and public institutions are also vital for building a water-resilient future that supports economic growth and social stability. Wesgro has been proactive in supporting investments in innovative water solutions. For instance, the organisation helped KaacKai, a local leader in smart wastewater recovery pods, secure approval for a decentralised wastewater treatment system in Cape Town—the first since the Day Zero drought crisis.
Practical measures
GreenCape CEO Michael Mulcahy noted that even modest investments in water interventions can deliver significant returns. For example, the CEO Guide highlights how health club chain, Virgin Active, reduced water usage by 62% across 30 Western Cape branches. This was achieved through retrofitting and alternative water systems, resulting in a 20-month payback on their R24 million investment. Similarly, Growthpoint Properties’ Estuaries office park in Cape Town realised 70% water savings mainly by installing smart meters, which enabled prompt leak repairs.
Most panellists at the event underlined the economic and societal importance of water and discussed practical measures businesses can take to enhance water resilience. These include implementing reuse systems and nurturing collaboration and technical expertise within the water sector. André Theys, Executive Manager: Operations at the V&A Waterfront, highlighted the precinct’s upcoming desalination plant, set to launch in October, which could significantly reduce the strain on Cape Town’s freshwater supply.
Melanie Humphries, Head of Private Banking Sustainable Solutions at Investec, pointed out the role of banks and funders in ensuring a water-resilient future, including offering bespoke financing solutions and leveraging development finance institutions to incentivise corporate water resilience initiatives.
The City of Cape Town is working to diversify and expand its water supply through its New Water Programme, aiming to meet the growing demands of its population. Alderman James Vos, Mayoral Committee Member for Economic Growth, said that the city has allocated R18 billion to water and sanitation projects for the current financial year, including R5 billion for capital projects—a significant increase from the previous year’s R3.3 billion. This investment is part of Cape Town’s broader strategy to become a global leader in water resilience, with public-private partnerships playing a key role in driving investment and job creation.
Western Cape Premier Alan Winde called water resilience an urgent priority requiring an all-hands-on-deck approach. He noted the global shifts in weather patterns as clear indicators of climate change risks. “Are we going to wait for our next Day Zero, or are we going to take this seriously? Water must be at the forefront of boardroom discussions,” Winde said, adding that the province’s 15-year water plan is a key focus area. He pointed out that failing to secure water supplies poses an even greater risk to the economy than electricity shortages.
Sean Phillips, Director General of the National Department of Water and Sanitation, emphasised the necessity of diversifying South Africa’s water resources, given the limited potential for further developing surface water. He advocated for increasing the use of groundwater, desalination, treated wastewater, and rainwater catchment, along with stronger water conservation efforts to reduce overall demand.
Phillips also highlighted the concerning fact that South Africa's average water consumption is 218 litres per capita per day, significantly higher than the international average of 173 litres, despite the country’s status as water-scarce. “This is an anomaly for a water-scarce country,” he remarked. Reducing this consumption is critical to ensuring long-term water security.
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