$40 Billion Water Gap Threatens Economy - South Africa
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| Photo credit: Bloomberg |
The water infrastructure itself is about 60 years old and the lifespan of the surface canal is 40 years, due to this old age there have been frequent breakage on the canal system, which interrupts supplies, if things get worse a lot of damage can occur to the crops.
Crumbling canals, dams and pipelines and a lack of funds to expand, replace and maintain them threatens to stymie economic growth and efforts to tackle a 25 percent unemployment rate in Africa’s biggest economy.
Mean while the Department of Water Affairs said in Aug that Water infrastructure requires investment of 670 billion rand an equivalent of $76 billion over the next decade, which is double the available funds, leaving a deficit of 338 billion rand.
South Africa's platinum and coal industries, two of the country's top four exporters, are already struggling to secure water supplies for new projects.
Paul Skivington, the group executive for strategy and risk at Impala Platinum Holdings Ltd. (IMP) said, "Water is certainly one of the major risks that we look at, It's not something you can generate, it's either there or not". - MoneyTalks
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