Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

response, and enhanced public awareness around demand management and leak reduction. Formal Approval of the Rand Water — Emfuleni SPV A key milestone this financial year has been the formal approval of the Special Purpose Vehicle (SPV) between Rand Water and Emfuleni Local Municipality (RW-ELM SPV). This long-term partnership will transform Emfuleni’s water and sanitation service landscape by professionalising service delivery, improving revenue collection, and restoring infrastructure maintenance and investment capacity. The RW-ELM SPV has the Department’s full support and represents a bold step forward in implementing the broader reform agenda envisioned in Operation Vulindlela. It offers a replicable model of how municipalities and water boards can collaborate to deliver on constitutional mandates where capacity constraints exist. The Department will work closely with Rand Water and all relevant partners to ensure the successful operationalisation of this entity. Its success will be vital not only for Emfuleni’s residents, but also for national confidence in the viability of such public-public partnerships. As of the 2024/25 financial year, outstanding municipal debt to water boards exceeds R28 billion. This SPV intends to improve revenue collection and reduce water losses thus improving the ability of municipalities to pay their water bill to water boards. Investing in Infrastructure for Resilience To ensure long-term water security, the Department has advanced a portfolio of catalytic infrastructure projects. These include the Lesotho Highlands Water Project Phase 2, which will augment the Integrated Vaal River System supplying Rand Water’s mandated area of supply. It is scheduled for completion in October 2028. Conclusion The 2024/25 financial year tested the Water and Sanitation sector, but it also demonstrated the importance of leadership, collaboration, and public accountability. Rand Water has risen to this challenge, ensuring continuity of bulk water supply, upholding quality standards, and aligning with the national reform trajectory. An example is the recent launch of Station 5A. His excellency President Cyril Ramaphosa officiated the launch of the Station 5A Water Purification Plant at the Rand Water Zuikerbosch

Plant in Vereeniging, Gauteng. The launch also aligns with the commitment made by the President in his 2025 State of the Nation Address that government will take decisive steps to resolve water challenges in the country. I extend my sincere appreciation to the Rand Water Board, Group Chief Executive, executive management, and all employees for their unwavering commitment and professionalism. The Department of Water and Sanitation looks forward to deepening this partnership as we work towards a secure, equitable, and sustainable water future. Let us continue to move forward with urgency, unity, and purpose because water is life, and sanitation is dignity.

Ms. Pemmy Majodina, MP

Minister of Water and Sanitation Date: 03/11/2025

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Rand Water | Integrated Annual Report 2025