Rand Water strengthens its financial resilience and continental footprint through Zanzibar partnership

Rand Water is proud to announce that it has been selected as the preferred bidder to provide technical
support, infrastructure management, and operational improvement to the Zanzibar Water Authority
(ZAWA) through a ten-year Management, Operations, and Maintenance (MOM) contract. It is important
to note that Rand Water will not supply water from South Africa to Zanzibar; the partnership is strictly
focused on technical support, infrastructure management, and operational improvement.

Rand Water’s primary commitment remains the provision of reliable bulk water services in South Africa.
The ZAWA partnership is a paid service, and the revenues generated will enhance Rand Water’s financial
sustainability while supporting continued investment in its core operations and strategic growth in South
Africa. Rand Water’s participation in Zanzibar does not negate the role it plays in South Africa. In terms of
Section 29 of the Water Services Act (1997), a water board’s primary mandate is to provide bulk water
services to other water services institutions. Section 30 permits water boards to undertake secondary
activities, provided these do not negatively affect the primary mandate. The Zanzibar project is classified
as a secondary activity and does not compromise Rand Water’s core responsibilities in South Africa.

The ZAWA partnership aligns with Rand Water’s corporate strategy of innovation-driven, risk-based
growth, advancing Rand Water’s mission to deliver sustainable, competitive water and sanitation services
in South Africa while benchmarking its technology and skills across the African continent. The initiative
supports Rand Water’s key objectives, including operational excellence, stakeholder engagement,
financial sustainability, and expansion of Rand Water’s African footprint.

Under the ZAWA MOM contract, Rand Water is responsible for:
▪ Optimizing Zanzibar’s water production, transmission, and distribution systems
▪ Rehabilitating and upgrading critical infrastructure
▪ Implementing world-class operational standards
▪ Building local technical skills and institutional capacity

The project involves a total investment of approximately R800 million, focused on enhancing the
sustainability, accessibility, and reliability of Zanzibar’s water services. This will provide a significant return
on investment for Rand Water. Operational work is already underway, with performance-based plans
targeting reduced water losses, improved service reliability, and strengthened financial sustainability for
both Rand Water and ZAWA. This partnership reflects Rand Water’s commitment to innovation, crossborder collaboration, and African water security, while ensuring its full focus remains on serving South
Africa’s water needs.

By providing paid technical services to ZAWA, Rand Water strengthens its financial resilience and
demonstrates South Africa’s leadership in African water solutions and institutional excellence, combining
strategic growth with social and economic impact on the continent. The ZAWA partnership directly
advances income diversification and financial resilience for Rand Water while reinforcing operational
excellence and a high-performance culture.

The benefits of the partnership for the South African water sector are:
▪ Operational Excellence: Working in diverse African environments allows Rand Water to test new
technologies, refine processes, and bring those lessons back home to improve efficiency and reliability.
▪ Financial Strength: Diversifying revenue reduces pressure on domestic budgets, ensuring that South
African water services remain robust, sustainable, and affordable.
▪ Skilled Workforce: Exposure to complex projects abroad enhances human capital, fostering a highperformance culture that directly benefits South African municipalities.
As part of its growth strategy, Rand Water has also resuscitated Rand Water Services – a subsidiary
supporting the domestic water sector through a Special Purpose Vehicle (SPV) model. This model enables
Water Services Authorities (municipalities) to partner with Rand Water for sustainable water management
solutions, in accordance with prevailing municipal legislation.
For media enquiries, please contact the following officials:
▪ Justice Mohale (Media Relations Manager) at 083 417 6999 [email protected]
▪ Makenosi Maroo (Spokesperson) at 072 545 5041 [email protected]