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Johannesburg Water to Assume Full Financial Responsibility from City of Johannesburg

By Africazine

Johannesburg Water is taking significant steps to enhance its financial independence from the City of Johannesburg.

The water utility has initiated a process to assume full financial responsibility, seeking procurement revenue experts to develop a revenue management model aligned with National Treasury reforms. This move aims to address the declining performance of essential services in South Africa’s economic hub.

Johannesburg Water’s Shift to Financial Independence

Johannesburg Water, the largest metro water entity, is embarking on a transformative journey to gain full financial control. This initiative is part of broader metro trading services reforms aimed at improving the management of water, electricity, and solid waste services across South Africa. The utility serves approximately 4.5 million residents and distributes between 1.6 billion and 1.7 billion litres of potable water daily.

To facilitate this transition, Johannesburg Water plans to engage revenue experts who will assist in creating a comprehensive revenue management model. This model will focus on maximizing revenue generation, enhancing billing completeness, reducing leakage, and managing distribution losses.

Context of the National Treasury Reforms

The National Treasury reforms are backed by R54 billion in performance-linked grants, with the goal of unlocking R100 billion in investment. These reforms are crucial as they aim to tackle the deteriorating infrastructure that has led to a significant increase in pipe bursts, rising from 20,729 in 2023/24 to 33,436 in 2024/25. Currently, only 67% of these bursts are fixed within the targeted 48 hours.

The lead revenue expert will be tasked with developing a detailed implementation plan and evaluating existing billing, credit control, and debt collection systems. This strategic overhaul is essential for ensuring sustainable water services in Johannesburg.

Next Steps for Johannesburg Water

  • Engage procurement revenue experts for the revenue management model.
  • Develop a detailed project implementation plan.
  • Assess billing, credit control, and debt collection systems.
  • Design a ring-fenced bank account structure and cash flow protocols.

Johannesburg Water is taking decisive action to secure its financial future and improve service delivery.

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