Coca-Cola and South African Partners Launch R500 Million Water Infrastructure Fund
South Africa currently loses about 47% of its treated water to pipe leaks, deteriorating infrastructure, and non-revenue water, according to sector sources. The public-private agreement, known as the South Africa Non-Revenue Water Mechanism, aims to stop widespread system failures by targeting physical leaks and improving industrial monitoring.
Partners Commit R500 Million to Rescue Municipal Networks
Following a high-level meeting with President Cyril Ramaphosa, project partners committed a total of R500 million to rescue failing municipal networks. Private sector partners, including the Coca-Cola system—comprising Coca-Cola Beverages Africa and Coca-Cola HBC—alongside the Glocal Water Challenge, aim to mobilise R250 million. Public and development entities will match that amount with another R250 million.
Public sector participants include the Department of Water and Sanitation, Rand Water Services, the City of Tshwane, the Platform for a Water Secure Gauteng, and the World Bank Group’s 2030 Water Resources Group. “Water security is fundamental to South Africa’s economic growth, community resilience, and long-term sustainability,” said Coca-Cola Company Africa operating unit President Luis Felipe Avellar. Water and Sanitation Minister Pemmy Majodina welcomed the initiative, noting that the National Water Crisis Committee continues to drive collaborative solutions that strengthen municipal capacity.
Pressure Management and Industrial Effluent Controls in Tshwane
Phase one of the initiative kicks off with a focused pilot stage in the City of Tshwane, which covers Pretoria, Centurion, Akasia, and surrounding areas. The project focuses on two immediate technical interventions: pressure management and industrial effluent monitoring.
High water pressure frequently causes ageing municipal pipes to burst or leak underground. To prevent this, the project installs automated valves and controls to regulate water pressure in municipal pipes. Simultaneously, the initiative addresses industrial effluent—the wastewater generated by factories that can damage municipal drainage systems, overload treatment plants, or evade proper billing. Installing dedicated monitoring equipment tracks the volume and quality of factory wastewater, ensuring commercial businesses comply with environmental regulations and pay a fair share for wastewater processing.
Scaling the Model Across South African Municipalities
Beyond immediate repairs in Tshwane, the initiative is designed to serve as a repeatable model for attracting private funding to local government infrastructure, aligning with the National Water Action Plan. Coca-Cola HBC CEO Zoran Bogdanovic emphasized that collaborative actions help attract private investment to address critical water sector challenges. Coca-Cola HBC has also agreed to acquire a majority stake in Coca-Cola Beverages Africa while supporting the project.
Frequently Asked Questions About the Water Infrastructure Initiative
What is non-revenue water in South Africa?
Non-revenue water refers to treated water that is lost before reaching paying customers due to pipe leaks, illegal connections, or metering inaccuracies. South Africa currently loses approximately 47% of its treated water supply through these vulnerabilities in municipal infrastructure.
Which government and private entities are funding the R500 million?
The R500 million is split evenly between private and public contributors from 2026 to 2031. Private contributors include the Coca-Cola system and the Glocal Water Challenge, while public and development partners include the Department of Water and Sanitation, Rand Water Services, the City of Tshwane, the Platform for a Water Secure Gauteng, and the World Bank Group’s 2030 Water Resources Group.
Where does the first phase of the project begin?
The pilot stage launches in the City of Tshwane, focusing on Pretoria, Centurion, Akasia, and surrounding areas. The initial work installs pressure management valves to stop pipe bursts and effluent monitoring systems to track factory wastewater.
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