RAND WATER ANNUAL REPORT 2023

ABOUT RAND WATER

STAKEHOLDER REASONS FOR ENGAGEMENT The Media •

We have a commitment as espoused in our Media Relations Policy to co-operate with all local, national and international media. • In the interest of transparency, we diligently respond promptly and professionally to every media enquiry. • We fully understand the importance of keeping the consumers of our product and the public in general of our operational performance. • Our social media platforms, public service announcements in the media are utilised to keep consumers and the public informed. • Aware of the leading role in the water sector, as well as the technical and scientific experience that we have acquired, we collaborate in workshops and other symposia with our national and international water sector partners. • Rand Water regularly engages with Domestic and International Institutional Stakeholders, Funds, Asset Managers and Analysts through a comprehensive Investor Relations Plan. The Plan includes meetings with Executive Management, Investor Roadshows, presentations to the investor community, amongst other initiatives that will be deemed necessary to keep Investors abreast of Rand Water.

The Public

Sector Partners

Financial Stakeholder Base

MATERIAL MATTERS Material matters are issues that have the potential to affect our short-, medium-, and long-term viability, sustainability, and capacity to implement our strategy and fulfill our mandate of supplying quality water to our customers. Materiality is determined by the magnitude of the object or nature in the context of its omission, misstatement, or obscurity. Materiality relates to both positive and negative events that can affect the organisation. Determining material matters at Rand Water is an ongoing process.

Our material issues during the Financial Year. Debt Owed by Municipalities

Rand Water is deeply concerned by the escalating debt owed to it by municipalities and their failure to respect their bulk water purchase and debt settlement agreements. Considering the expected slow economic recovery from the COVID-19 pandemic, Rand Water has experienced deterioration of its financial health due to non-payment of debt by Rand Water’s customers, mainly municipalities. As at end of the 2022/23 Financial Year, the collective overdue debt owed by municipalities is over R4 billion. This is affecting the overall cash flow of the organisation. We constantly engage municipalities to create relationships with the ever-changing leadership position within the municipalities. Rand Water continues to work closely with the Department of Co-operative Governance and Traditional Affairs (COGTA), Department of Water and Sanitation (DWS), National Treasury (NT) and other government departments at all levels as well as relevant stakeholders to resolve the systemic challenges which have given rise to municipalities’ arrear debt.

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