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Mr Ndumiso Tyibilika
Interim Board Chairperson
On behalf of Amatola Water Board, I am delighted to present its Integrated Annual Report for the 2023/24 financial year and unpack its achievements and challenges.
The entity is confident that the improvements made are a precursor to ensuring greater access to clean water for the people of the Eastern Cape. We must make every effort to ensure this fundamental constitutional right is honoured, underpinned by the third edition of South Africa’s National Water Resources Strategy. The strategy will continue supporting the government’s goal of protecting and managing water resources for current and future generations.
Amatola Water’s improved performance is fortuitous because it demonstrates that the entity’s corporate strategy and the government’s intent are aligned. Furthermore, these results demonstrate that Amatola Water is making a tangible contribution to this goal.
I am happy to report that during this financial year that it attained an unqualified audit outcome and a 4% improvement in overall performance targets compared to last year.
Amatola Water’s reputation is built by delivering hard-won operational results—providing clean water through well-maintained infrastructure and skilled staff - and winning hearts and minds through solid relationships.
Hence, it is encouraging that some of our best performances for this year have been strengthened critical relationships with internal and external stakeholders, improved risk and operations management. The report provides details in these areas.
However, a significant risk remains our financial sustainability. The entity is hampered by increased debtors’ collection periods and an operating deficit of R164 million. We are confident that Amatola Water’s financial turnaround strategy and plan will deliver by aggressively implementing eight interventions that are instrumental to the plan’s success. Furthermore, we are encouraged by the support provided by the partnership between the Department of Water and Sanitation, Department of Cooperative Governance and Traditional Affairs, National Treasury, SALGA and provincial government in targeting municipal debt.
However, significant challenges need addressing. These include high consumer demand amid climate change, decreasing water resources, and improving Eastern Cape households’ access to clean water. In addition, service reliability for municipal water and sanitation services shows a disappointing decline which increases the risk of disease and environmental pollution.
Amatola Water’s response to these infrastructure challenges is the implementation of the Amatola Water Infrastructure Master Plan (IMP) which was approved by the Board. The IMP will integrate with the Provincial Water Infrastructure Master Plan, which is under review, by working closely with provincial stakeholders, the municipalities and communities within Amatola Water’s supply area. The implementation proposals of the IMP commenced with the establishment of strategic partnerships with the Infrastructure Fund (IF) and Infrastructure South Africa (ISA) for project preparation and feasibility studies.
Another critical achievement for the entity has been the approval of our Climate Change Resilience Strategy, which addresses potential climate change risks.
Last year’s corporate governance improvements have resulted in a strong performance, risk, and ethics management culture at the board level. The Board continued to uphold good governance and practices through reviewing and updating Board Charter, Board Committee Terms of Reference including organisational policies.
Furthermore, the leadership and management capacity has been boosted by filling long-vacant positions and providing much-needed capacity in critical areas.
Congratulations to Ms Pemmy Majodina (MP), the newly appointed Minister of Water and Sanitation, who inspires us to fulfil our mandate and the former Minister, Mr Senzo Mchunu, for his wise and inspiring leadership.
I extend my gratitude to my predecessor, Ms Pam Yako, and to former Board members Mr Simphiwe Dzengwa, Ms Zamela Kiviet, and Ms Sindisiwe Xulu, whose dedicated efforts helped keep the organisation on course. I also recognise the commitment of Board members Mr Ayanda Mjekula and Ms Boitumelo Mokgatle, who have served with this interim Board since its inception.
I further acknowledge the Board members who joined us during the year under review, Mr Wisdom Mushohwe and Ms Nonkululeko Mxenge-Mayende, whose contributions have already begun to make a positive impact. Finally, I warmly welcome the most recently appointed Board members, Ms Litha Geza and Ms Nomfundo Douw-Jack, and look forward to their valuable insights and contributions to Amatola Water.
I extend my gratitude to the Chief Executive and his management team including all employees for their commendable service to the people of the Eastern Cape during a challenging time.
