The Amatola Water Board’s Corporate Plan (2024/25 – 2028/29) outlines a multi-pronged approach to achieving profitability, centered around:

Increasing Bulk Water Sales Volumes: The plan highlights the importance of bulk water sales for long-term financial and operational viability. This involves attracting new customers and potentially expanding service area to encompass the entire Eastern Cape Province.

Implementing a Financial Turnaround Plan: A key element of the strategy is the development and execution of a comprehensive Financial Turnaround Plan. This plan aims to:

○ Diagnose financial and operational inefficiencies.

○ Analyze costs and identify areas for improvement.

○ Benchmark tariff-setting processes against industry standards.

○ Design a sustainable financial business model for the short and long term.

○ Explore suitable funding models.

○ Improve current financial performance.

Expanding Secondary Business Activities: Amatola Water intends to grow its secondary business operations, leveraging its expertise in areas beyond bulk water supply. This includes offering services like scientific support to other municipalities8. The revenue generated from these activities can then be used to bolster the balance sheet and fund further expansion.

Securing Capital Infrastructure Funding: Amatola Water is actively seeking funding for infrastructure upgrades and expansions to increase production capacity. These upgrades aim to improve efficiency, reduce operational costs, and enable the entity to meet growing water demands.

Improving Debt Management: Recognizing the challenge posed by customer debt, Amatola Water is committed to strengthening its debt management practices. This includes diversifying its customer base to mitigate risks associated with delayed payments.

By pursuing these initiatives concurrently, Amatola Water aims to achieve financial sustainability and solidify its position as a leading regional water utility in the Eastern Cape.

It is the opinion of Ratepayers Revolt that the Amatola Water Board has no credible plan for achieving financial stability, and will doubtless try to pass its chronic ineffectiveness on to ratepayers as double digit percentage increases in bulk water fees. Municipalities need to forcibly push back.