Strategic Water Partners Network (SWPN)
Economic impact of the
Water Administration System
The water supply-demand gap for South Africa is
projected to reach 17%, (2,7 billion m 3 per annum), by
2030. The SWPN, with additional funding inputs from
Coca Cola, 2030WRG, Landbank and GIZ, partnered
with NB Systems to roll out the implementation of the
Water Release Module of the WAS at 21 large irrigation
schemes between 2016 and 2018.
As irrigation consumes 61% of
national water resources, the
potential for impact due to reduc-
tion is losses on irrigation schemes,
could make a significant contribu-
tion to the SWPN objective of
closing the water supply-demand
gap in South Arica. Irrigation
that has high water losses of
about 30%, with some schemes
reaching over 40%. South Africa
has an estimated area under
irrigation of 762,679 ha with an
estimated total water allocation of
7,920 billion m 3 /a 1 .
In the June/July SABI magazine
we reported that the Strategic
Water Partners Network, a part-
nership between the private sector
and Department of Water and
Sanitation established in 2011,
identified the Water Administration
System (WAS) as an instrument to
reduce water losses on Irrigation
schemes in South Africa. In
the
August/September
SABI
magazine the WAS system was
described in more detail. In this
article we provide insights into the
broader economic benefits of the
WAS system, as established in a
2018 study undertaken on behalf
of SWPN by Prime Africa 2 .
190,931ha (25% of the estimated
total area under irrigation in South
Africa) and more than 10,000
farmers. The water savings on
the nine schemes served in 2016
and 2017, representing 64% of
the total area served under the
21 schemes, was measured at
202,58 million m 3 /annum. At time
of writing baselines had not yet
been finalized for the remaining
twelve schemes, served by WAS
in 2018. Savings have therefore
been projected for these schemes,
based on the experience of the
first nine schemes. Savings for the
twelve schemes are projected at
66,0 million m 3 /annum 3
Figure 2: Annual water savings on schemes served by WAS
Economic benefit
Figure 1: Irrigation areas in SA water management areas
The economic analysis consid-
ered the impact of the WAS for
the 21 schemes served, covering
an irrigated area of more than
1. Water Accounts for South Africa: 2000 Discussion
document (D0405.1) Statistics South Africa Pretoria:
Statistics South Africa, March 2009
30
SABI | OCTOBER/NOVEMBER 2019
Empirical evidence from the WAS
database, for each scheme in
Phases 1&2, was used to project
water savings to 2030, on the
assumption that increased famil-
iarization and operational proto-
cols would, over time, result in
increased reduction of losses. The
weighted average actual savings
for Phases 1&2 was used to project
savings on Phase 3 schemes. This
information was used to develop
series forecast of water savings,
with a base year of 2018. The
resultant water savings estimate
2. Dr JG Crafford and Ms D Maila, Mr V Mathebula,
Business case for the Water Administration System,
Prime Africa study on behalf of SWPN, October 2018
provided the quantity component
of the economic valuation. The
model is shown in Figure 3.
Based on a weighted average
quota, Phases 1,2 and 3 together,
have a water saving is equivalent
to an additional 29,000 ha of
irrigation area.
The benefit of the WAS water
savings, in terms of current water
charges is estimated R572 million
per year. This is the actual value
of actual water savings comprising
3. Saving are calculated at full quota. In drought years
where quotas are reduced, water savings will also be
reduced. The analysis in this article is based on the
full quota scenario.