RAND WATER ANNUAL REPORT 2023

LEADERSHIP REVIEW

I would like to take this opportunity to thank my colleagues on the Board and congratulate the Chief Executive, management and staff of Rand Water for their invaluable contribution to the performance results achieved for the Financial Year 2022/23. These results demonstrate visionary leadership underpinned by strong commitment from staff. The guidance provided by the Honourable Minister of Water and Sanitation served to engender the spirit of success as depicted in these pleasing results. On behalf of the Board, I further wish to convey our sincere gratitude for the direction that the Honourable Minister has provided in shaping Rand Water’s Strategy thereby ensuring alignment with policies at the Department of Water and Sanitation. This direction has provided greater clarity as we finalised the annual Shareholders’ Compact for the Financial Year 2023/24. As the organisation continues on its impressive growth trajectory, I challenge the organisation to maintain this proud record of excellence into the future and to maintain its position as the leading provider of bulk water services.

One of the risks identified relates to non-payment by customers for bulk water purchases. Persistent efforts have been made to resolve and accommodate non-paying municipalities. Bilateral engagements and agreements have been entered into through relevant Intergovernmental Relations forums and despite the slow pace in improvement, it is hoped that all stakeholders will honour their obligations in this regard in order for the current situation to improve. Our stakeholders constitute our reason for existence hence the partnership with all stakeholders cannot be overemphasized and I thus also appreciate their valuable feedback and ongoing support. We have had challenges in our stakeholder engagements as a result of, amongst others, Rand Water is greatly concerned by the escalating debts owed by its customers and failure by municipalities to honour their bulk water purchase and debt settlement agreements. To operate sustainably and efficiently, Rand Water solely relies on funds collected from its customers, mainly municipalities, as Rand Water does not receive any form of allocation from the national fiscus. Consequently, Rand Water’s financial sustainability and ability to fulfil its mandate heavily depends on municipalities paying for the water they receive from the entity. our scheduled maintenance requirements and the impact of load shedding on our ability to pump water, high water demand, etc. This has led to some robust engagements with some of our key customers / stakeholders. As Rand Water, we remain committed to having open communication lines with all role-players to ensure that our customers and communities are kept abreast of developments and challenges that may impact the supply of bulk water by Rand Water from time to time.

Ramateu Monyokolo

Chairperson of the Board

13