RAND WATER ANNUAL REPORT 2023

REPORT BY THE CHAIRPERSON OF THE BOARD In line with its intention to strengthen governance structures and taking into consideration advancements in governance and global corporate governance ethos, the Board in October 2022, restructured its committees. This new configuration has brought about improved efficiencies in monitoring and evaluation of the performance of executives. The new configuration has also refined the key performance areas and performance targets in terms of which the overall performance of the organisation is measured by the Shareholder on a quarterly and annual basis.

The Board of Rand Water subscribes to the principles of good Corporate Governance, at the centre of which is high ethical values and integrity to name but a few. In line with best governance practice, a Social and Ethics Committee was also established in 2022 to consider and oversee Rand Water’s standing and commitment towards the management of the environment, governance, corporate social responsibility and ethical conduct in Rand Water’s operations and the impact thereof on the community and other affected stakeholders. The Board continues to be accountable for the implementation of the Innovation Driven Risk-based Strategy that was approved in 2019 and the development and approval of supporting policies and strategies to guide its implementation. To this end, the Board has reviewed and refined the Group’s strategic goals for the next five (5) years. This is in order to ensure the financial sustainability of Rand Water and to position Rand Water as the leading provider of bulk water services within its areas of service and beyond. The following are the re-defined Strategic Goals for the Rand Water Group for the next five (5) years: • Increased Self-Reliance with regard to Energy Supply; • Alternative Sources of Water Supply; • Financial Sustainability, and • Sustainable and viable Rand Water Services (Pty) Ltd, a subsidiary company of Rand Water, invested locally and in Africa. The attainment of these Strategic Goals represents the legacy of the Board. Following the review of the strategy, the Board also conducted a risk analysis and identification exercise in support of Rand Water’s Innovation Driven Risk-based Strategy. Key strategic risks and relevant mitigation plans have been identified and included in the strategic risk register to be monitored by the Board through the Group Audit and Risk Committee as part of its mandate.

Mr. Ramateu Monyokolo Chairperson of the Board

This year marks 120 years of Rand Water’s existence as a supplier of potable bulk water to its customers. The 2022/ 23 Financial Year’s Integrated Annual Report demonstrates the proud record of the entity as a going concern that continues to grow from strength to strength since its inception. Rand Water continues to deliver bulk potable water of a world class standard to its customers and is always looking at innovative ways to improve the supply of water and its operations. This Integrated Annual Report further marks a year since the appointment of this Board by the Minister of Water and Sanitation, for a four-year term commencing September 2022 to September 2026. The new Board was appointed following a rigorous nomination and selection process. The Board members underwent an intense on-Boarding and immersion programme and the Board has come to appreciate the issues that pervade the water sector.

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