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Money Down the Drain

Money Down the Drain

The African continent faces a growing battle for achieving adequate and safe access to power and potable water. Without addressing the need for power and water, Africa will not achieve its true growth potential as the “world’s last growth frontier”. Macro-economic forces such as climate change, growing populations, increasing urbanisation rates and deteriorating existing water infrastructure, are all encouraging local governments to shift towards Non-revenue water (NRW) reduction strategies. In collaboration, Frost & Sullivan and SIWI, conducted an “Analysis of the Investment Opportunities for Non-Revenue Water in South Africa and Mozambique”, with a more detailed assessment of two select municipalities per country. Using historic (2010) up to present day (2016) figures, a thorough understanding of the nature and size of the NRW problem, the size of the opportunity (both private and public sector), and the relative governance bottlenecks were identified.


  • Executive Summary
    • Scope of the Analysis
      • Strategic Implications of the Study
    • Suitability of the Project
    • Approach/Methodology of the Study
    • Problem Statement
      • Table Identified Quick Facts in Select Municipalities, South Africa and Mozambique, 2015
    • Conclusions
  • Country Analysis: South Africa
    • Water Supply-Demand Analysis
      • Table Supply vs. Demand Analysis for Water, South Africa, 2015
      • Table Annual Gross Domestic Product (GDP) and Population, South Africa, 2012-2018
      • Table Provincial Breakdown of Population, Population Percentage Split, GDP Percentage Split, and GDP per Capita, South Africa, 2015
  • Nelson Mandela Bay Metropolitan Municipality (Port Elizabeth), South Africa
    • Municipality Overview
      • Table Population Progression-Nelson Mandela Bay, South Africa, June 2010-June 2013
    • Water Supply-Demand Analysis
      • Table Annual Expenditure on Water Purchase-Nelson Mandela Bay, South Africa, 2014-2016
      • Table System Input Volume vs. Water Demand-Nelson Mandela Bay, South Africa, 2010-2012
    • Water Accessibility/Penetration
      • Table Water Accessibility/Penetration-Nelson Mandela Bay, South Africa, 2010-2012
    • Water Consumption per Capita
      • Table Comparison of System Input Volume, Authorised Unit Consumption, and Water Loss-Nelson Mandela Bay, South Africa, 2010-2012
    • Non-revenue Water (NRW)
      • Table Revenue Water vs. Non-revenue Water-Nelson Mandela Bay, South Africa, 2010-2012
    • Component/Category-wise Split for NRW
    • Value of Revenue Losses due to Accounting and Billing Problems
    • Water Tariff Analysis and Trends
      • Table Water Tariff Analysis and Trends-Nelson Mandela Bay, South Africa, 2015-2016
  • City of Tshwane (Pretoria), South Africa
    • Municipality Overview
      • Table Population Progression-City of Tshwane, South Africa, June 2010-June 2013
    • Water Supply-Demand Analysis
      • Table System Input Volume vs. Water Demand-City of Tshwane, South Africa, 2010-2012
    • Water Accessibility/Penetration
      • Table Water Accessibility/Penetration-City of Tshwane, South Africa, 2010-2012
    • Water Consumption per Capita
      • Table Comparison of System Input Volume, Authorised Unit Consumption, and Water Loss-City of Tshwane, South Africa, 2010-2012
    • Non-revenue Water (NRW)
      • Table Revenue Water vs. Non-revenue Water-City of Tshwane, South Africa, 2010-2012
    • Component/Category-wise Split for NRW
    • Value of Revenue Losses due to Accounting and Billing Problems
    • Water Tariff Analysis and Trends
      • Table Water Tariff Analysis and Trends-City of Tshwane, South Africa, 2015-2016
  • Country Analysis: Mozambique
    • Water Supply-Demand Analysis
      • Table Supply vs. Demand Analysis for Water, Mozambique, 2015
      • Table Annual GDP and Population, Mozambique, 2012-2018
  • City of Maputo Municipality, Mozambique
    • Municipality Overview
      • Table Population Progression-City of Maputo Municipality, Mozambique, 2010-2013
    • Water Supply-Demand Analysis
      • Table System Input Volume vs. Water Demand-City of Maputo Municipality, Mozambique, 2010-2013
    • Water Accessibility/Penetration
      • Table Water Accessibility/Penetration-City of Maputo Municipality, Mozambique, 2010-2013
    • Water Consumption per Capita
      • Table Water Consumption per Capita-City of Maputo Municipality, Mozambique, 2010-2013
    • Non-revenue Water (NRW)
      • Table Revenue Water vs. Non-revenue Water-City of Maputo Municipality, Mozambique, 2010-2013
    • Component/Category-wise Split for NRW
    • Value of Revenue Losses due to Accounting and Billing Problems
    • Water Tariff Analysis and Trends
      • Table Water Tariff Analysis and Trends-City of Maputo Municipality, Mozambique, 2014
      • Table Evolution of Water Tariffs (Average)-City of Maputo Municipality, Mozambique, 2003-2014
      • Table Municipal Authority's Earnings through Provision of Water Services-City of Maputo Municipality, Mozambique, 2010-2013
    • Economic Losses Associated with NRW (Energy, Chemical, etc. Lost per m3 of Water Lost)
  • City of Beira, Mozambique
    • Municipality Overview
      • Table Population Progression-City of Beira Municipality, Mozambique, 2010-2013
    • Water Supply-Demand Analysis
      • Table System Input Volume vs. Water Demand-City of Beira Municipality, Mozambique, 2010-2013
    • Water Accessibility/Penetration
      • Table Water Accessibility/Penetration-City of Beira Municipality, Mozambique, 2010-2013
    • Water Consumption Per Capita
    • Non-revenue Water (NRW)
      • Table Revenue Water vs. Non-revenue Water-City of Beira Municipality, Mozambique, 2010-2013
    • Component/Category-wise Split for NRW
    • Water Tariff Analysis and Trends
      • Table Evolution of Water Tariffs (Average)-City of Beira Municipality, Mozambique, 2003-2014
      • Table Municipal Authority's Earnings through the Provision of Water Services-City of Beira Municipality, Mozambique, 2010-2013
    • Economic Losses Associated with NRW (Energy, Chemical, etc. Lost per m3 of Water Lost)
  • NRW Governance Bottlenecks and Opportunities: South Africa and Mozambique
  • South Africa
    • Overview of the Institutional Landscape
    • Incentives to Reduce NRW
      • Water Security Incentives
      • Financial Sustainability Incentives
  • Cross-country Analysis
    • Institutional Barriers and Opportunities
    • Tariffs
    • Experience with Private Sector Engagement (Water Supply Concessions and Lease Contracts)
    • Legal Systems
      • Table Rule of Law Index, South Africa and Mozambique, 2015
    • Vested Interests
    • Economies of Scale
    • Capacity for Infrastructure Planning and Procurement
    • Transparent Budgeting and Financial Reporting
    • Summary of NRW Governance Bottlenecks and Opportunities
  • Opportunity Analysis: South Africa and Mozambique
    • Opportunity Analysis

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