RAND WATER ANNUAL REPORT 2023

HOW WE CREATE VALUE

Looking Forward As we reflect on the journey of Rand Water’s 120 years of excellence and looking forward to the future, it is an opportunity to share our achievements and outline our vision towards a sustainable future. We firmly believe that a sustainable future is not a luxury, but an imperative that demands action from all sectors, including Rand Water. Over the past year, Rand Water has continued to navigate the ever-evolving water industry landscape, adapting to emerging trends and challenges. Rand Water was faced with significant hurdles pertaining to the ongoing issue of non payment by municipalities and persistent water challenges in certain areas of our supply. Matters such as climate variability, extreme heat waves, a challenging economic climate, load shedding presented considerable changes and challenges for Rand Water. The non-payment by municipalities has posed a considerable strain on our financial sustainability. Despite Rand Water’s unwavering efforts to provide high-quality water to communities, some municipalities have struggled to meet their payment obligations most notably the top three (3) metropolitan municipal customers. This is evident by the increase in debtors’ days as at 30 June 2023. However, early in the month of July 2023, there was a sharp decline in debtors’ days as the municipalities repaid their outstanding balances. This reflects and highlights the challenges that need collective action and collaboration to address the underlying issues and find sustainable solutions. Rand Water remains committed to working closely with all stakeholders to forge partnerships that promote responsible financial management and ensure the uninterrupted water supply to those who rely on it. Rand Water draws attention to the current water challenges in its area of supply which is driven by the high demand far exceeding the licensed abstraction volumes by DWS. However, these challenges are seen as opportunities to innovate and implement sustainable solutions to ensure the long-term availability of this precious resource. Thus, implementation of water conservation and demand management measures are critical, and implementation of cutting-edge solutions designed to optimise operations, reduce water loss, and enhance the efficiencies throughout the water value chain, are critical. As part of the initiative, Rand Water has embarked on the implementation of the “Satellite Leak Detection” project to accurately locate leaks, and pipeline enhancements. This would enable Rand Water to identify and respond swiftly to issues, ensuring uninterrupted water supply.

Rand Water remains steadfast in our commitment to collaboration and partnerships with our municipalities, governments, communities, and industry stakeholders as it is vital to addressing the systemic issues affecting water management. Together, we can develop holistic approaches, foster responsible resource allocation, and find innovative solutions to these pressing challenges. Rand Water’s focus on innovation and technology was crucial in addressing some of these challenges. We will continue to monitor market developments, explore new opportunities, and adapt our strategies as needed to overcome the challenges we face. With a focus on enhanced stakeholder and investor relations, ongoing sustainability, and strong management principles, Rand Water is determined to navigate through economic challenges with agility. Together, let us confront the financial and water challenges, embrace innovative solutions, and forge a path towards a future where water security, financial stability, and sustainability are achieved for the betterment of all. These results would not have been possible without the hard work and dedication of the Finance Team and Rand Water Management. I would also like to express my gratitude to Mr SA Mosai, the Chief Executive of Rand Water, for his exceptional guidance and leadership during these challenging times. I would like to express my appreciation to the Board of Rand Water, under the leadership of Chairperson Mr Ramateu Monyokolo, for their exceptional role and invaluable support as the accounting authority.

Matshidiso Nyembe Chief Financial Officer

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