Beyond load shedding: Why water scarcity is Africa’s next big crisis
For years, South African businesses have battled the disruptions of electricity load shedding, but now, a new crisis is emerging that could be even more devastating: water scarcity. Across Africa, we face a dual threat of water and energy shortages, making it clear that water, not just energy, will dominate sustainability conversations in the years ahead.
As SMEs navigate an increasingly complex business environment, addressing water scarcity is no longer optional; it’s essential for survival and growth. With rising costs, operational risks and regulatory pressures, businesses must act now to build resilience against this looming challenge.
Building a resilient future together
Addressing water scarcity is not just a challenge; it’s a call to action. Through education, innovation and collaboration, we can empower SMEs to adopt sustainable water practices and build resilience against this growing crisis. Our positive impact framework guides everything we do, focusing on financial inclusion, enterprise growth, infrastructure development and climate change resilience.
We invite you to explore our water management solutions and discover how we can help your business navigate this critical issue. Together, we can secure a sustainable future for Africa’s businesses and communities.
Water scarcity isn’t just about quantity; it’s about accessibility
The reality of ‘water shedding’ has begun to impact daily life in South Africa, bringing new urgency to discussions around water management. However, this isn’t just a local problem. Water scarcity affects many African countries, disrupting industries, communities and economies.
Over $28 billion in annual productivity is lost across Africa due to poor access to clean drinking water. The average African household spends approximately $1 600 over 5 years boiling water and treating water-borne diseases. Beyond these economic impacts, extreme weather events such as floods and droughts exacerbate the issue, highlighting the need for effective water management strategies.
A stark example of this crisis can be seen in Zambia and Zimbabwe, where drought conditions led to dangerously low water levels in the Kariba Dam. This critical hydroelectric power source was unable to meet demand, resulting in over 24 hours of load shedding daily in Zambia. Such events demonstrate how interconnected water and energy security are and why addressing water scarcity is vital for business continuity.
Why SMEs must prioritise water management
Water scarcity poses significant risks to SMEs, from increased costs to reputational damage. Businesses that fail to manage water responsibly risk losing their competitive edge in an evolving market. Here’s why proactive water management matters:
- Rising operational costs: As water tariffs increase, inefficient usage can significantly inflate expenses.
- Supply chain disruptions: Industries reliant on agriculture or manufacturing may face shortages of raw materials due to water stress.
- Reputational challenges: Consumers are increasingly favouring businesses with strong sustainability credentials.
- Regulatory penalties: Governments are introducing stricter regulations on water usage, and non-compliance could lead to fines or other consequences.
However, there are opportunities too. By adopting sustainable water practices, SMEs can reduce costs, improve efficiency and attract environmentally conscious customers. Proactive water management positions businesses as leaders in sustainability while safeguarding their operations against future disruptions. Sustainable practices are becoming standard operation in most SMEs, and there is a plethora of opportunities to leverage these initiatives in your business.
Practical steps for SMEs to conserve water
Transitioning to sustainable water practices doesn’t have to be overwhelming. Here are some actionable steps SMEs can take to start managing water resources effectively:
- Conduct a water audit: Identify inefficiencies in your water usage and areas for improvement.
- Implement water-saving technologies: Install low-flow fixtures, rainwater harvesting systems and smart water metering tools to track usage and detect leaks.
- Reuse and recycle water: Explore options for reusing greywater or implementing wastewater recycling systems, particularly in industries such as agriculture.
- Partner with sustainable suppliers: Work with vendors who prioritise water conservation in their operations.
- Educate employees: Build awareness among staff about water-saving practices and encourage behavioural changes.
Turning challenges into opportunities
While implementing water management strategies may seem daunting, the benefits far outweigh the challenges. By embracing sustainable practices, SMEs can unlock opportunities such as the following:
- Cost savings: Efficient water usage reduces operational expenses.
- Improved productivity: Streamlined processes result in better resource management.
- Market access: Eco-conscious consumers increasingly favour businesses with strong sustainability credentials.
- Resilience: Businesses that act now will be better positioned to weather future disruptions caused by water scarcity.
Moreover, government incentives for water conservation may provide financial support for businesses looking to invest in water-efficient technologies. For example, rebates on rainwater harvesting systems or grants for wastewater recycling initiatives could make the transition more affordable.
How we support SMEs in navigating water scarcity
We recognise the critical role SMEs play in driving economic growth and resilience, especially in the face of challenges such as water scarcity. To empower businesses to adapt to this growing crisis, we focus on providing knowledge, resources and advocacy for sustainable water management practices.
Our initiatives include the following:
- Educational interventions for sustainability
We are developing sustainability learning modules focused on water and wastewater management. These modules aim to equip our internal staff and business banking clients with the knowledge needed to manage water resources effectively. By fostering a culture of sustainability, we help businesses adopt practices that optimise water usage and mitigate risks associated with water scarcity. - Promoting smart water management solutions
Through collaboration with innovative clients, we advocate for the adoption of smart water metering technology. These tools enable businesses to monitor water consumption, detect leaks and reduce wastage, helping them lower operational costs while conserving vital resources. - Encouraging wastewater recycling practices
In regions facing severe water stress, such as Zimbabwe and Malawi, we support efforts to promote wastewater recycling for agricultural purposes. This approach helps conserve groundwater, enhances food security and builds resilience against climate-related challenges.