Municipal Water and Wastewater Treatment Equipment Market Growing in South Africa

June 15, 2007

The rising demand for water and a push towards better sanitary standards have led to the upgrading and expansion of municipal water and wastewater treatment facilities across South Africa.

New analysis from Frost & Sullivan, South African Municipal Water and Wastewater Treatment Equipment End-User Analysis, finds that the South African municipal water and wastewater treatment equipment is witnessing considerable growth. This is largely due to municipalities expanding their existing equipment and installing new water treatment plants to cater to the growing urban population and to provide water and sanitation to rural areas. Furthermore, there is the emergence of a new market for upgrading and maintaining municipalities' archaic equipment.

"South Africa is set to spend in excess of $50 billion as the Accelerated and Shared Growth Initiative -- South Africa (ASGISA) program unfolds in the next two to three years," notes Frost & Sullivan research analyst Moses Duma. "While this money will be used to develop a number of social amenities including water and wastewater treatment plants, South African municipalities are also set to increase their water capacities to take care of the anticipated influx of people during the Soccer World Cup in 2010."

However, the municipalities' desire to invest in water treatment equipment is hampered by factors such as skill shortages, prolonged bureaucratic decision-making processes and insufficient awareness about new water and wastewater treatment technologies among key decision makers.

In addition, despite the huge finances being channeled towards infrastructural development, municipalities are still more likely to purchase conventional equipment they know and can easily operate, rather than choosing new technologies.

Source: Frost & Sullivan