The Coca-Cola system has announced a R500 million public-private partnership with the South African government to address the country's growing water infrastructure challenges. This initiative aims to reduce municipal water and revenue losses due to leaks and strengthen long-term water security. The partnership was developed in collaboration with various stakeholders, including Coca-Cola Beverages Africa, the World Bank Group's 2030 Water Resources Group, and the Department of Water and Sanitation.
South Africa currently loses an estimated 47% of treated water through leaks, aging infrastructure, and other non-revenue water losses. The initiative will initially focus on targeted operational and infrastructure interventions in Gauteng, with phase one commencing in the City of Tshwane municipal system. Early implementation efforts will focus on leak reduction through pressure management and the installation of infrastructure to improve industrial effluent monitoring and accountability.
The partnership forms part of the Coca-Cola system's Africa Water Stewardship Initiative and complements efforts under the National Water Action Plan to improve municipal water delivery, strengthen operational efficiency, and accelerate investment into critical infrastructure. According to Luis Felipe Avellar, President of The Coca-Cola Company's Africa operating unit, "Water security is fundamental to South Africa's economic growth, community resilience, and long-term sustainability."
The initiative aims to mobilize R250 million in investment, matched by Public Sector partners, resulting in a combined R500 million toward Gauteng municipal water infrastructure and NRW reduction initiatives. The innovative mechanism addresses a significant structural gap in South Africa's water sector by creating a platform for private sector participation in municipal water infrastructure investment.
The World Bank Group, as part of its Water Strategy Implementation Plan Water Resources Group, fully supports collaborative mechanisms that can mobilize investment, technical expertise, and operational capability toward critical development priorities. Lubabalo Luyaba, Senior Water Specialist at the World Bank Group, noted that the NRW programme is a practical demonstration of the municipal trading services reforms agenda.
Coca-Cola HBC, which has agreed to acquire a majority stake in Coca-Cola Beverages Africa, also supports the effort. Zoran Bogdanovic, CEO of Coca-Cola HBC, said that it's inspiring to see government, business, and development partners come together to make a real difference for communities. The collaboration is expected to expand into additional municipalities over time, creating a broader framework for infrastructure recovery.
The programme also forms part of the Coca-Cola system's longer-term water replenishment and sustainability goals. Sunil Gupta, Chief Executive Officer of Coca-Cola Beverages Africa, emphasized that the initiative creates an important model for how public and private sectors can work together to address infrastructure challenges at scale. Minister of Water and Sanitation, Hon Pemmy Majodina, welcomed partnerships that support the national commitment to improving water security and municipal service delivery.
Key points
- The Coca-Cola system has partnered with the South African government to invest R500 million in water infrastructure to address the country's growing water challenges.
- The initiative aims to reduce municipal water and revenue losses due to leaks and strengthen long-term water security.
- The partnership is expected to expand into additional municipalities over time, creating a broader framework for infrastructure recovery.
