Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Tailored investment to expand capacity and extend asset life The majority of projects capitalised in the current year contributed to higher operating capacity and renewed infrastructure lifespan, reinforcing the core strengths that customers and communities rely on during challenging times. Our five-year CAPEX programme is estimated at R40 billion, a deliberate and targeted allocation designed to sustain and enhance essential water infrastructure. Allocation by priority areas Bulk water infrastructure of R26.6 billion is earmarked for augmentation and renewal, reflecting a strategic focus on sustaining our supply and long-term water security. These investments fortify the backbone of service delivery, ensuring capacity to meet growing demand and adapt to climate variability. R12.8 billion has been earmarked for the implementation of Rand Water’s Growth and Diversification goals which is made up of four pillars: Increased Self Reliance to Energy Supply; Alternative Sources of Water to meet Effective Demand; Diversified Income Streams and Financial Health and Sustainability. Some of the notable investments envisaged to be funded in this extensive CAPEX programme include the construction of modern wastewater treatment and water reclamation plants to enable water recycling, invests in green energy through Independent Power Producer programmes and underground water exploration. These initiatives will expand our environmental stewardship, supports regulatory compliance, and strengthens regional water sustainability. Facilities and IT/OT infrastructure: The remaining R0.8 billion targets critical operational enablers, modern facilities and integrated information and operational technologies that improve governance, monitoring, and efficiency across our network. Strategic outcomes and stakeholder value The accelerated CAPEX execution reinforces our ability to weather shocks by building capacity, resilience, and reliability into the asset base. By sequencing investments across core infrastructure, environmental upgrades, and digital enablement, we create durable value for customers, communities, and partners. The deliberate CAPEX mix aligns with governance standards and prudent capital discipline, ensuring that every rand funds enduring improvements and sustains service continuity.

5% 3% 0.01%

Automation Assets Building & Property Assets Civil Structures Assets Electrical Assets Mechanical Assets Pipelines Assets Process Assets Information Technology

Actual Projects Capitalisation - Rm

11%

5%

Capital Expenditure 2024 - 2025 R1.98bn

1 769

47%

2025 973

28%

2024

CAPEX 2026-2030

14 000 12 000 10 000

R12bn

8 000 6 000 4 000 2 000 -

R10bn

R8bn

R7bn

R3.2bn

2026

2027

2028

2029

2030

Augumentation

Renewal

SGDU Facilities

IT

97

Rand Water | Integrated Annual Report 2025