South African Business 2025

FOCUSThe Rand Water

FOCUSThe Rand Water storyNew bonds and awards attest to the financial health and sustainabilityof the bulk-water utility which serves more than 18-million people.Sipho Mosai, Group Chief Executive, Rand WaterWater is more than a resource; it is thelifeblood of humanity, underpinninghealth, sanitation and economic vitality.Rand Water’s efforts are to address thebroader needs of an expanding population.Creating lasting impactRand Water operates a sophisticated networkof pumping and purification stations with anextensive regional pipeline network that stretchesapproximately 3 660km.As cities swell and the demand for clean watersurges, the need for resilient infrastructure and adeptmanagement of water resources has never beenmore urgent. Access to clean water is a fundamentalconstitutional right for every South African.Rand Water is committed to providing asustainable and dependable water supply foreveryone. From cutting-edge water-purification plantsand expansive reservoirs to efficient pump stationsand advanced automation, the largest bulkwaterutility in Africa, Rand Water, stands as a sentinel in thewater supply and sanitation sector. The company is ona brilliance journey, making profound contributionsto water management and service delivery, not justin South Africa, but across the African continent. RandWater stands as a guiding light in addressing theurgent water needs of the region.To make sure that the utility’s efforts are notin vain, attitudes and behaviours towards waterusage must be reshaped to ensure that water isshared equitably. Engaging communities in waterconservation, encouraging responsible practicesand promoting awareness, fostering a culture ofsustainability that benefits everyone, have neverbeen more important. To assist in this processof transforming society’s interaction with water,Rand Water has launched several campaignssuch as Water Wise, that aim to ignite awarenessabout the importance of valuing and conservingwater resources. In addition, the Rand WaterCommunications Division chairs the CommunicatorsForum between the utility and municipalities andlaunched joint water conservation campaigns,in various channels, including community radiostations, South African Broadcasting Authority (SABC),e-TV and Newzroom Afrika, among others.To grow and enhance delivery, operationalintegrity must be maintained. Rand Water is ona transformation journey to implement the bestfittechnology to optimise its processes, as wellas cultivating a high-performance culture that iscrucial for fostering innovation and efficiency.Visionary leadershipUnder the visionary leadership of Sipho Mosai, theGroup Chief Executive (GCE), and his talented andresilient executive team, Rand Water has garnereda global reputation for delivering water of thehighest quality, consistently meeting and surpassingnational and international standards. The bulkwaterutility serves over 18-million people across fourprovinces, namely Gauteng, some parts of NorthWest, Mpumalanga and the Free State, and spansan area of over 37 000km². Mosai and his executiveteam have enhanced operational efficiency whilenurturing strategic partnerships and spearheadingsustainability initiatives. This has positioned RandWater as a force to be reckoned with and anSOUTH AFRICAN BUSINESS 202582

influential thought leader in the water sector. Mosaiand his executive team understand that the successof Rand Water depends on upliftment of communitieswithin Rand Water’s areas of operation.Over the past five years, the entity’s corporatesocial responsibility and community developmentprogrammes that include skills development, jobcreation and the capacitation of SMMEs throughthe Rand Water Foundation and Socio-EconomicDevelopment Department. The departmentspearheads initiatives that go beyond water supplyand tackle broader socio-economic challenges,aligning Rand Water’s goals with nationaldevelopment priorities.Financial health and best-fit technologyThe financial statements of the past five years showthat the company prioritises maintaining financialhealth and sustainability. The company’s focuson maintaining financial health while investing instate-of-the-art technologies and infrastructure hasyielded significant projects such as the constructionof the biggest post-tension reservoir in Vlakfontein,Ekurhuleni (210-million litres) and the biggestpurification plant since the dawn of democracy at600-million litres-per-day at the Zuikerbosch WaterPurification Plant.Despite the economic downturn that SouthAfrica and many other countries globally have beenexperiencing, Rand Water’s revenue grew by 11.4%,driven by cost-reflective tariffs and volume growth.Furthermore, there has been a gross income growthof 15.3% while maintaining a gross income marginabove 30% year on year through a dedicated focus oncost efficiencies. This translates to a solid bottom linewith net income growth of 29.0% in 2024 and a netincome margin of 20.9%, further boosted by returnson strategic investments.Mosai and his executive team have made immenseeffort to keep the utility’s financial profile strongamid economic challenges and a tough operatingenvironment. In April 2021, Rand Water successfullyredeemed the RW21 bond with a total nominal amountof R1.6-billion and the RW23 bond in December 2023at a nominal amount of R1.2-billion. The successfulsettlement of these bonds demonstrated Rand Water’sfinancial strength and financial stability. Rand Water’sfinancial sustainability was further attested by theissuance of three new bonds on 30 June 2021, in seniorand sustainability-linked notes amounting to R1.7-billion. These bonds attracted over R4.5-billion, a solidindication of confidence in Rand Water’s strength bythe investor community.The organisation was the first state-ownedentity (SOE) to issue sustainability-linked bondsin Africa. In March 2022, Rand Water won the“Bonds, Loans & Sukuk Africa Awards” in relationto the sustainability-linked bonds. Rand Water hasachieved all these within the premise of its strongset of values that underpin its commitment todelivering quality water.Sipho Mosai – the man at the top of Rand Water’ssuccessSipho Mosai has been the Group Chief Executiveof Rand Water since 2019. Before becoming GroupChief Executive, Mosai was Rand Water’s ChiefOperations Officer for 10 years. He has over 20 yearsof executive management and technical experiencein bulk and distribution water operations, waterinfrastructure planning, maintenance, refurbishmentand upgrade, project management, scientific services,strategic-asset management and sector growth anddevelopment in municipalities and various otherorganisations and water boards.Mosai has served as a non-executive and boardmember in various institutions, including as Chair ofthe Human Resources Subcommittee and Chair ofthe Audit and Risk Committee of the ConstructionIndustry Development Board (CIDB). Mosai holds thefollowing qualifications: Bachelor of Science, Bachelorof Science with Honours (University of the North);Master of Science (University of the Free State); PostGraduate Diploma in Management (University ofKwaZulu-Natal) and Master of Business Administration(MBA) (University of KwaZulu-Natal). ■83 SOUTH AFRICAN BUSINESS 2025