Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

BOARD REPORT (CONTINUED)

Approval of the Special Purpose Vehicle (SPV)

In July 2025, the Emfuleni Local Municipality (ELM) Executive Council approved the establishment of a Special Purpose Vehicle (SPV). Approval of the fundraising activities of the Rand Water Zanzibar Project Subsequent to year-end, the Board approved fundraising activities for the Rand Water Zanzibar Project, along with an assessment of the project’s progress.

13.Corporate business plan and shareholders compact

Rand Water has supplied bulk potable water to Gauteng and surrounding areas for more than 122 years, earning an international reputation for delivering some of the highest-quality water in the world. Its growth in infrastructure and service quality reflects the same pioneering spirit that drove the development of Johannesburg which is South Africa’s economic hub. From the Vaal Dam, Rand Water purifies and disinfects water at its Vereeniging and Zuikerbosch stations before pumping it to Zwartkopjes and other booster stations at Palmietfontein, Eikenhof, and Mapleton, and then on to 58 reservoirs for distribution to customers. Our mandate Rand Water is a water board that was established and is governed in terms of Chapter 6 of the Water Services Act, No. 108 of 1997. Rand Water is listed as a National Government Business Enterprise in Schedule 3B of the Public Finance Management Act No.1 of 1999. The Government of the Republic of South Africa, through the Department of Water and Sanitation (“the Executive Authority”), duly represented by the Minister of Water and Sanitation, is the sole Shareholder of Rand Water. Since 1903, Rand Water has been playing an integral role in the development and growth of Gauteng, its cities, and its surrounding regions by providing water to people and industries. Our mandate, as the largest bulk water utility in Africa and one of the largest in the world, is to provide bulk potable water to mainly municipalities who then supply water to more than 18 million people in Gauteng, parts of Mpumalanga, Free State and North West provinces - an area that stretches over 18 000 km 2 . During the year under review, Rand Water continued with its mandate of water and sanitation services provision in its area of operations. Most of Rand Water’s core value chain involves purchasing and distributing potable water from the Integrated Vaal River System (IVRS). Rand Water obtains raw water from the Department of Water and Sanitation (DWS). For decades, DWS has been developing and implementing various water transfer schemes, sourcing raw water from other countries, provinces and catchments with more abundant resources and delivering it into the IVRS. The latest DWS development project is the Lesotho Highlands Phase 2, which should be commissioned by 2028.

Rand Water is the largest water utility in Africa, providing bulk potable water to a population that has grown to an estimated

18 million in Gauteng, parts of Mpumalanga, the Free State and North West provinces. Its customer base includes metropolitan municipalities, local municipalities, mines, industries, farmers and a few individual households. The vision of Rand Water, as stated in the Shareholder’s Compact, is as follows: To be a provider of sustainable, universally competitive water and sanitation solutions for Africa.

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Rand Water | Integrated Annual Report 2025