The New Partnership for Africa's Development (Nepad) Business Foundation (NBF) has entered into a strategic partnership with the UK government’s Foreign, Commonwealth and Development Office (UK-FCDO) to implement the UK-South Africa Municipal Water Partnership.

The initiative aims to improve water security, reduce water losses and strengthen the operational performance of municipalities across South Africa amid mounting water challenges driven by aging infrastructure, operational inefficiencies and financial constraints that limit the ability of many municipalities to provide reliable water services.

The NBF initiative, in partnership with the UK government, targets systemic issues through focused water demand management and conservation interventions in key municipalities including Johannesburg, Polokwane and Nelson Mandela Bay.

The project is funded by the UK Government’s Urban Resilience Programme.

The programme will support municipalities in improving leak detection, upgrading infrastructure, enhancing metering accuracy and adopting digital tools that strengthen planning and decision-making.

“This partnership marks an important milestone in our mission to strengthen municipal water resilience and ensure that communities across South Africa have access to reliable, sustainable water services,” said NBF CEO Peter Varndell.

“Public–private collaboration is essential to solving South Africa’s water crisis. The partnership between the NBF and the UK-FCDO demonstrates the kind of coordinated practical action our water sector urgently needs,” added Strategic Water Partners Network (SWPN) private-sector cochairperson Alyssa Jooste.

The SWPN, hosted by the NBF, developed the No Drop Programme together with the Department of Water and Sanitation and piloted the first nonrevenue water municipal partnership in Polokwane. On the back of that success, the model was replicated in Nelson Mandela Bay and has shown that it can be applied in other municipalities as well.

“By combining technical expertise, international support, and strong local partnerships, this initiative brings real momentum to the national effort to reduce water losses and strengthen municipalities.”

A central feature of the partnership is the establishment of a nonrevenue water fund, a revolving mechanism that reinvests savings from water-loss reductions into future improvements, which will create a sustainable, long-term model for water resilience and service reliability.

Estimates indicate that nonrevenue water levels exceed 40%, resulting in major water losses, revenue erosion and growing service backlogs.

“By tackling nonrevenue water, we are addressing both a critical environmental challenge and an economic one - turning water savings into financial sustainability and job opportunities. We are grateful for the UK government’s partnership and confidence in our work,” said Varndell

“The UK is proud to partner with the Nepad Business Foundation in driving innovative and sustainable solutions to South Africa’s water challenges. This initiative supports our shared vision of inclusive development and climate resilience in cities,” said British High Commissioner to South Africa Antony Phillipson.

“Through the UK-South Africa Municipal Water Partnership, we aim to empower municipalities to manage water more efficiently and strengthen communities through job creation and improved services.”

The collaboration aligns with South Africa’s national water priorities and strengthens the relationship between government, business, development partners and civil society through the SWPN.

It also contributes directly to United Nations Sustainable Development Goal 6: Clean Water and Sanitation and supports broader climate-resilience objectives.