OPPORTUNITY: DBSA Opens Bids for Private Sector Water Projects

South Africa is facing a projected 17% water deficit by 2030, with several key economic hubs and metropolitan areas already experiencing acute supply constraints. In response to this mounting challenge, the state-owned Development Bank of Southern Africa (DBSA) is spearheading a structural paradigm shift. Moving beyond purely municipal frameworks, the DBSA’s Water Partnerships Office (WPO) has issued an official invitation for Expressions of Interest (EOIs) from private sector project sponsors with innovative water reuse and reclamation initiatives.

This move transitions municipal effluent and commercial wastewater from a “waste liability” into a valuable, tradable resource class. Backed by an impressive R4.23 billion (USD 235 million) in grant and concessional loan funding secured from the Green Climate Fund (GCF), the Water Reuse Programme (WRP) represents a major entry point for private developers, industrial water users, and infrastructure investors to scale up commercial water solutions.

Expanding the Mandate: From Public to Private

Historically, the WPO and the DBSA focused their capacity-building and project preparation resources strictly on municipal public infrastructure. However, recognizing that heavy industry, commercial properties, and agricultural operations are critical players in water consumption, the WPO is expanding its support mechanism.

The office is actively looking to partner with and de-risk projects driven entirely by the private sector, specifically targeting:

• Industrial and commercial water users optimizing their own supply.
• Property and infrastructure developers implementing closed-loop solutions.
• Independent project developers and investors focused on resource recovery.

The scope of eligible initiatives spans industrial wastewater recycling, resource recovery at private treatment facilities, and decentralized or off-grid water reuse systems.

What the DBSA is Bringing to the Table

For private entities navigating the complex regulatory and capital-heavy landscape of South African water infrastructure, the WRP acts as an institutional accelerator. The DBSA has structured its intervention to guide projects from early-stage conceptualization through to financial close.

Eligible private-led initiatives can access:

• Project Preparation & Development Support: Technical, financial, and institutional structuring to ensure bankability.
• Public-Private Alignment: Direct facilitation of crucial regulatory and municipal interfaces, often a bottleneck for independent water projects.
• Blended Finance Solutions: Access to the GCF-backed funding pool alongside the crowding-in of private institutional capital, commercial bank debt, and ESG-driven asset managers.

Ultimately, the WRP aims to treat water infrastructure as a standardized, lucrative asset class complete with project bonds that offer predictable, climate-resilient financial returns.

Bridging the 2030 Deficit

The context driving this initiative cannot be overstated. South Africa’s National Water and Sanitation Master Plan explicitly calls for an aggressive reduction in freshwater demand alongside a rapid increase in supply via effluent reclamation, desalination, and the treatment of acid mine drainage.

By creating a standardized framework for private sector participation, the DBSA is lowering the barrier to entry for businesses looking to secure their own supply lines while relieving pressure on crumbling municipal grids. Beyond water security, the program focuses on resource circularity, meaning proposed projects that incorporate secondary components like energy generation or sludge beneficiation will find an incredibly receptive partner in the WPO.

Submission Guidelines for Project Sponsors

The WPO is calling for comprehensive Expressions of Interest from project sponsors across various phases of maturity—from concept and pre-feasibility to ready-for-implementation stages.

Key Requirements for EOI Submissions

• Technical Profile: Description of the wastewater source, the specific treatment technology utilized, and the intended reuse application (volumes and target metrics).
• Project Concept Note: Clear outline of objectives, geographic location, and commercial viability.

• Maturity Documentation: Available feasibility studies, technical designs, or business cases.
• Stakeholder Framework: Details regarding any existing municipal, regulatory, or environmental interfaces.
• Financial Overview: Estimated capital expenditure (CapEx) requirements and the proposed funding approach.

For South African industries aiming to future-proof their operations against climate variability and “water shedding,” the DBSA’s invitation provides a strategic framework to convert infrastructure ideas into fully funded, bankable assets.

Submissions and enquiries can be sent to – wrpapplications@dws-wpo.org.za