The Federated Hospitality Association of South Africa (FEDHASA) has described the launch of the Vaal Corporation Water Utility (VCWU) by the Department of Water and Sanitation (DWS), Rand Water, and Emfuleni Local Municipality as a decisive structural step that will restore the Vaal River Barrage Reservoir, rebuild investor confidence, and revitalise the region’s tourism and economic potential.
“Pollution and failing wastewater systems have held back the Vaal’s development for many years. The creation of this Special Purpose Vehicle (SPV) shows that National Treasury, DWS, and Rand Water are taking structural action to rehabilitate the river system and stabilise critical water infrastructure,” said Brett Tungay, FEDHASA National Chairperson.
FEDHASA believes the VCWU will catalyse:
- Job creation across hospitality, accommodation, recreation, and supporting industries.
- Investment in tourism products as water quality and infrastructure improve.
- The revival of river based activities such as fishing tournaments, regattas, and eco tourism.
- Growth in related sectors including boat building, marinas, and maintenance services.
- Increased riverfront property values and associated economic activity.
The Vaal River Barrage Reservoir remains one of South Africa’s most promising inland tourism destinations. FEDHASA notes that a clean, well managed Vaal is essential for sustainable tourism growth and long term job creation.
National significance: A blueprint for South Africa
FEDHASA welcomes government’s commitment to replicate the Vaal SPV model in other municipalities. With municipalities collectively owing Water Boards R28 billion (R8.4 billion owed to Rand Water alone), this structural approach is urgently needed to secure national water services.
The SPV model offers a practical mechanism to:
- Support Water Boards’ operational sustainability.
- Protect national water security.
- Introduce professional, ring fenced management.
- Break the cycle of infrastructure collapse.
- Ensure accountability and performance.
- Address the municipal debt crisis crippling service delivery.
Government emphasised that the new utility is not a debt relief measure but a decisive step to stabilise services and safeguard the Water Board.
“FEDHASA views the VCWU’s launch as a national turning point toward competence driven water management, economic revival, tourism growth, and large scale job creation. A clean, reliable river system is the lifeblood of tourism. Through this new SPV, the Vaal, and, ultimately, other regions across South Africa, can begin the journey to a sustainable and opportunity rich future,” Tungay concluded.
