Rand Water | Integrated Annual Report 2025

SECONDARY ACTIVITIES Driving resilience through diversified revenue and social impact

The Group’s commitment to diversified, sustainable revenue streams and robust stakeholder engagement is exemplified by Rand Water Services (RWS) and Rand Water Foundation (RWF). RWS extends our commercial water services footprint, both nationally and internationally, expanding our reach, creating value, and reinforcing the reliability of water solutions across markets. RWF advances our corporate social investment strategy, deepening community development, capacity building, and meaningful stakeholder partnerships. Our secondary activities encompass a broad portfolio of externally funded initiatives, including project management, consulting, training, and support services, alongside the sale of raw water and potable water to consumers outside municipal service areas. This diversified revenue base reflects our ability to translate social value into sustainable earnings. Revenue from these secondary activities rose to R1.33 billion (2024: R1.31 billion), accompanied by growth in stakeholder support services to R72.7 million (2024: R61.3 million). These results signal strong execution in securing external assignments and delivering high-impact services.

Revenue from Management, Consulting, Training and other Support Services (R’000)

72 713

61 320

46 503

39 879

40 504

2021

2022

2025

2023

2024

Key initiatives shaping our stakeholder value Emfuleni Local Municipality (ELM) Section 63 Intervention Project: A Ministerial directive aimed at elevating local water services remains a cornerstone of our stakeholder engagement. As this project evolves, it will transition to the SPV, which will assume responsibility for water service delivery, reinforcing continuity and resilience at the municipal level. Utilities of the Future model: This initiative envisages ringfencing water services to ensure the long-term sustainability of municipal water services and water boards, safeguarding service delivery amidst governance and funding pressures. National Treasury collaboration: The joint support through the National Treasury Graduate Internship Programme strengthens the pipeline of skilled professionals for the water sector, building capacity and safeguarding future resilience. OUTLOOK AND VALUE FOR STAKEHOLDERS These secondary activities reinforce Rand Water’s resilience by diversifying revenue, anchoring long-term social value, and strengthening stakeholder trust. They position us to weather policy shifts and funding cycles while delivering reliable water services and community benefits. CAPITAL EXPENDITURE (CAPEX) Strategic investment that strengthens our foundation Rand Water’s CAPEX programme surpassed projections, reflecting disciplined ambition and a clear commitment to long term reliability. Through the capital execution department, we invested R1.98 billion in the year, versus R1.5 billion in the prior period, achieving 130% of our corporate target for the period. This performance underscores our ability to translate planning into tangible improvements that expand capacity, extend asset life, and safeguard service delivery.

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Rand Water | Integrated Annual Report 2025