Public private partnerships are key to development of South African water, wastewater markets

South Africa is a water-stressed nation and private sector participation in water management services will contribute significantly to the preservation of natural water resources. According to new analysis from Frost & Sullivan, improved water efficiency is becoming increasingly critical in South Africa, and public-private partnerships (PPPs) will be the lynchpin in attaining this objective...

CAPE TOWN, South Africa, Sept. 25, 2008 -- South Africa is a water-stressed nation and private sector participation in water management services will contribute significantly to the preservation of natural water resources. According to new analysis from Frost & Sullivan, improved water efficiency is becoming increasingly critical in South Africa, and public-private partnerships (PPPs) will be the lynchpin in attaining this objective.

The new report, "Procurement Processes and Outsourcing in the South African Water and Wastewater Market," finds that the treatment equipment market earned revenues of USD 157.1 million in 2007 and estimates this to reach USD 265.5 million in 2014. The water and wastewater outsourcing market earned revenues of USD 140.1 million in 2007 and estimates this to reach USD 237.6 million in 2014.

"PPPs enable a synergy between the best that government and the private sectors have to offer," notes Frost & Sullivan Industry Analyst David Winter. "They harness the energies of both partners to achieve an unprecedented, and much desired, outcome."

The Durban Water Recycling Project is an outstanding example of a PPP that demonstrates an innovative approach to several challenges relating to water resource management. The project has not only contributed to the effective management of industrial effluent, but has also helped reduce the demand for water by industries, thereby freeing potable water for about 300,000 people in the Durban metro area.

Privatization is a very sensitive issue within the South African labor market. Labor unions have a fundamental ideological opposition to PPPs, viewing them as a threat to job creation, which remains one of South Africa's biggest challenges.

"Official unemployment figures are estimated to be around 26 percent," explains Winter. "Hence, labor unions, who have always been against privatization, will view any PPP formation as a form of privatization of state-owned assets and a serious threat to job creation."

Competent employees are crucial for effective project implementation, especially in an environment where old and new technologies have to function in unison. Technical competence is central to high-class service delivery and industry players will need to demonstrate dedication to skills development with sound black economic empowerment credentials.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the procurement processes and outsourcing in the South African water and wastewater market, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com. Please include your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Procurement Processes and Outsourcing in the South African Water and Wastewater Market is part of the Environmental Growth Partnership Service Programme, which also includes research in the following markets: U.S. Residential Water Treatment Equipment Markets, North American Residential Water Treatment Equipment Markets -- Investment Analysis and growth Opportunities, Global Competitive Environment for Residential Water Treatment Equipment Market, Global Residential Air and Water treatment -- A Snapshot of the Evolution of Products and Markets; and Residential Water Treatment Equipment Markets in China and India. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth.

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