South Africa Water Report 2016
BMI View: While South Africa's water industry continues to remain a regional outperformer, this is owing to the poor state of its neighbours rather than its own strengths.
With high losses, poor bill payment practises, ongoing water shortages and a small project pipeline, opportunities remain subdued and risks remain high at present.
However, new legislation and strong government support for substantial improvements to the sector will see greater potential over the medium term through to the end of the decade.
Latest Updates We view news of a possible draft law that compels municipalities to spend 15% of their annual budgets on the maintenance and operation of water infrastructure as an extremely advantageous development for water services and infrastructure companies alike.
There is a downside risk to our full-year 2015 forecasts following news that water supply levels in the Johannesburg, Tshwane and Ekurhuleni metros in South Africa's Gauteng province have dropped significantly, with utility Rand Water issuing an advisory to residents to use water sparingly.
Officials have blamed the situation on high temperatures and severe drought facing several parts of the country.
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