At the forefront of providing quality water and sanitation services
Tasked with leading the largest water utility in Africa, meet Sipho Mosai, the Group Chief Executive of Rand Water since 2019. He spoke to Leadership Editor Prof JJ Tabane about all things water.
Prior to his current role at Rand Water, Sipho Mosai worked as the Rand Water Chief Operations Officer for 10 years.
With a background in science, Mosai has evolved into a strategist and business leader in the water sector. His wealth of experience drives innovation and, in turn, has fostered significant advancements in the water sector, effectively transforming this vital industry.
With over two decades of experience, the Group Chief Executive (GCE) has held a diverse array of roles, showcasing expertise in executive management and technical operations in bulk and distribution water systems. His extensive background encompasses water infrastructure planning, maintenance, and refurbishments alongside project management and scientific services. Additionally, Mosai has made contributions to strategic asset management, sector growth, and development. This includes serving on the Construction Industry Development Board (CIDB), where he chaired the Human Resources Subcommittee in his first term and was the chairperson of the Audit and Risk Committee in his second term.
Among his many credentials are a Bachelor of Science (BSc) and BSc (Honours) degrees from the University of the North (now University of Limpopo), a Master of Science from the University of Free State, a Postgraduate Diploma in Management and MBA from the University of KwaZulu-Natal.
Visionary leadership
Under the visionary leadership of Mosai, Rand Water has garnered a global reputation for delivering water of the highest quality, consistently meeting and surpassing national and international standards.
The bulk water utility serves over 18 million people across four provinces, namely Gauteng, some parts of North-West, Mpumalanga, and Free State, and spans an area of over 37 000km2. Mosai has enhanced operational efficiency, all while nurturing strategic partnerships and spearheading sustainability initiatives. This has positioned Rand Water as an influential thought leader in the industry.
“It must also be noted that I have remained an advocate for corporate social responsibility and community engagement, spearheading initiatives that go beyond water supply and tackling broader socio-economic challenges, aligning Rand Water’s goals with national development priorities,” he says.
His dedication to attracting and developing top-tier talent in water services aligns seamlessly with Rand Water’s mission of cultivating a high-performance culture. The utility, which has been tasked with providing bulk water, plays a pivotal role in ensuring that municipalities, local authorities, mines, and large industries can access the essential water they require.
The Rand Water story
“Rand Water operates a sophisticated network of pumping and purification stations with an extensive regional pipeline network that stretches approximately 3 660km,” says Mosai proudly. In addition, the bulk water utility has major facilities in Zuikerbosch and Vereeniging.
Water is more than a resource; it is the lifeblood of humanity, underpinning health, sanitation, and economic vitality. Rand Water’s efforts are to address the broader needs of the expanding population.
The establishment of the Rand Water Board in 1903 marked a transformative moment in the Witwatersrand water supply history. Prior to this, many of the earlier initiatives by small private companies failed to quench the growing thirst for potable water and meet the wide-ranging needs of the expanding population.
After the Boer Republic and the British Empire reached a peace deal in 1902, the British government responded to the shortcomings of early effort inadequacies through the foundation for what would become Africa’s largest bulk water utility, Rand Water.
Mosai asserts that in South Africa, the provision of water services has become a crucial lifeline amid rapid urbanisation, population growth, and the relentless effects of climate change. As cities swell and the demand for clean water surges, the need for resilient infrastructure and adept management of water resources has never been more urgent.
“It is vital that society as a whole acknowledges that despite great effort, severe water challenges persist, posing a threat not only to humankind, but to all species in the environment,” Mosai avers.
Access to clean water is a fundamental constitutional right for every South African. However, strong and well-maintained infrastructure is necessary to realise this. Sadly, the ageing water system, built more than forty years ago, has suffered from extensive wear and tear, leading to substantial water loss through leaks.
As result, it is paramount that these issues are addressed for the sake of safeguarding this vital resource for future generations to come.
Fortunately, Rand Water is committed to providing a sustainable and dependable water supply for everyone. From cutting-edge water purification plants and expansive reservoirs to efficient pump stations and advanced automation.
Pressed on the issue of ageing infrastructure, Mosai says: “By strategically investing in the maintenance of infrastructure, the development of new facilities, and embracing innovation, the organisation is well-equipped to tackle the challenges of a changing environment, while ensuring millions have access to clean water.”
As the largest bulk water utility in Africa, Rand Water stands as a sentinel in the water supply and sanitation sector.
The company is on a transformative journey, making profound contributions to water management and service delivery, not just in South Africa, but across the African continent.
Creating a lasting impact
Under Mosai’s leadership, combined with his organisational expertise, Rand Water stands as a guiding light in addressing the urgent water needs of the region.
However, in order to make sure that the utility’s efforts are not in vain, society must cooperate. “It is important that the public’s attitude and behaviour towards water usage is reshaped for the sake of their livelihoods and future,” Mosai adds.
Engaging communities in water conservation will encourage responsible practices and promote awareness, fostering a culture of sustainability that benefits everyone.
To assist in this process of transforming society’s interaction with water, Rand Water has already launched several campaigns, such as Water Wise, that aim to ignite awareness about the importance of valuing and conserving water resources.
In addition, the Rand Water Communications Division chairs the Communicators Forum between the utility and municipalities within Rand Water’s areas of operation. Amongst others, the Forum discusses communication strategies that are aimed at changing people’s attitudes towards water usage to ensure equitable provision.
Therefore, to realise its vision, Rand Water has established strategic objectives that propel its mission forward. The organisation aims to achieve growth by expanding its reach and enhancing service delivery.
This includes maintaining operational integrity, which is essential as Rand Water seeks to implement the best-fit technology to optimise its processes, as well as cultivating a high-performance culture within the utility that is crucial for fostering innovation and efficiency.
Furthermore, Mosai highlights that “Rand Water is committed to positively engaging its stakeholder base, ensuring open communication and collaboration.”
Lastly, the company prioritises maintaining financial health and sustainability, identifying that robust fiscal management is vital for its long-term success and ability to serve the communities it supports.
A commitment to Rand Water’s values
Rand Water is guided by a strong set of values that underpin its commitment to delivering quality water services.
Mosai emphasises that “equity stands at the forefront, ensuring fair and just treatment for all stakeholders”.
The organisation upholds integrity, fostering trust through transparency and ethical practices. A spirit of partnership drives collaboration with various stakeholders, recognising that collective efforts lead to greater success.
“Rand Water is dedicated to excellence, striving for the highest standards in all its operations. Additionally, the company embodies a caring approach, prioritising the well-being of the communities it serves,” Mosai says.
Mosai has consistently applied these strategic objectives in every decision he has made relating to Rand Water. The well versed and seasoned leader has used both his knowledge in science and executive management to improve the company.
In addition to this, the organisation has adopted a strategic vision focused on growth and sustainability, aimed at tackling existing water challenges and enhancing water distribution. This approach not only aims to improve access to water, but also ensures that resources are managed responsibly for future generations.
Mosai’s focus on maintaining financial health while investing in state-of-the-art technologies and infrastructure has yielded significant projects such as the construction of the biggest post tension reservoir in Vlakfontein, Ekurhuleni at 210 million litres storage and the biggest purification plant since the dawn of democracy at 600 million litres a day Station 5A at Zuikerbosch Water Purification Pant.
This can also be witnessed in the revenue growth of 11.4% to R21.8 billion, driven by cost-reflective tariffs and volume growth. Furthermore, there has been a gross income growth of 15.3% to R7 billion while maintaining a gross income margin above 30% year on year through a dedicated focus on cost efficiencies.
This translates to a solid bottom line with net income growth of 29.0% to R4 562 million (2023: R3 536 million) and a net income margin of 20.9% further boosted by returns on strategic investments.
Under Mosai’s tenure as GCE, immense effort has been made to ensure the maintenance of a strong financial profile amidst the economic challenges and tough operating environment. He acknowledges that liquidity and financial risk management remain the cornerstones towards Rand Water’s financial sustainability.
This was underpinned by the organisation’s ability to successfully redeem the RW21 bond with a total nominal amount of R1.6 billion in April 2021 and the RW23 bond in December 2023 at a nominal amount of R1.2 billion. The successful settlement of these bonds has demonstrated Rand Water’s financial strength and financial stability.
Rand Water’s financial sustainability was further attested by the issuance of three new bonds on 30 June 2021, in senior and sustainability-linked notes amounting to R1.7 billion. The issuance of the bonds attracted over R4.5 billion in capital market bids—a solid indication of confidence in Rand Water’s financial status by the investor community.
It is significant to mention that the organisation was the first state-owned company (SOC) to issue sustainability-linked bonds in Africa and was the single largest ZAR-denominated sustainability-linked bonds to be issued then. In March 2022, Rand Water won the Bonds & Loans Africa Awards in relation to the sustainability-linked bonds.
However, the utility’s efforts do not end there. To further ensure that it preserves water for future generations, treatment plants have become the solution. These initiatives are designed to bolster water supply and ensure reliability for communities in need.
The Rand Water Institute plays a vital role in driving innovation and research within the organisation. It has placed focus on developing cutting edge technologies and solutions to enhance water supply and management. It is establishing itself as a thought leader in the water industry locally and globally by encouraging collaboration and knowledge transfer.
The many moving parts
The leadership and management of Rand Water has been deliberate and successful in managing the operations of its bulk water infrastructure, ensuring they serve as reliable sources for the organisation’s water supply. To better understand this, it is vital that one knows the history of where it began.
Although the idea was first proposed in 1954 by the Natural Resources Development, it was only in the late 1970s when the South African and Lesotho governments negotiated to harness water from Lesotho to enhance the Vaal River Integrated System.
Eventually, in 1987, a treaty was finally signed by representatives from Lesotho, the World Bank, the United Nations, and the European Union to formalise this arrangement.
For the first of three phases, the building of four large dams: Senqu in Lesotho, Ash River in the Free State, Wilge River, and ultimately, the Vaal Dam, was required. This cost ultimately grew from R5.1 billion to R9.1 billion.
The first phase saw the construction of the Katse Dam and the Mohale Dam, along with a network of tunnels in the Highlands of Lesotho.
Under this arrangement, South Africa is obligated to pay Lesotho R150 million each year to help augment the water supply to the Vaal Dam, regardless of the water’s utilisation. This financial commitment ensures a steady support for the water supply system.
The Lesotho Highlands Tunnel is a project of the Department of Water and Sanitation (DWS), and the Trans Caledon Tunnel Authority (TCTA), an entity of DWS, that manages it on behalf of the Department.
The project comprises of the Katse Dam, Mohale Dam, Muela Power Station, and 82km of tunnels that transfer 780 million m3 of water per year into the Integrated Vaal River System, from which Rand Water draws water to supply its customers.
The scheme is designed to deliver an impressive 2.2 billion m3 cubic metres of water annually to South Africa.
Despite this, concerns have been echoed by Mosai and the public alike about non-revenue water, which has resulted in litres of water lost through leaks at an estimated 1.6 billion litres a day drastically increasing water usage across the Gauteng Province and municipalities that are supplied by Rand Water.
The No Drop certification measures water use efficiency in municipal drinking water distribution systems. It uses non-revenue water as a key performance indicator to gauge water wastage. The evaluation examines physical water losses (leaks), daily per capita water usage, strategies to reduce water losses, and the effectiveness of metering, billing, and revenue collection systems.
According to the No Drop report independently produced by the Department of Water and Sanitation, only four Water Services Authorities achieved the certification by scoring 90%, a significant drop from 44 municipalities in 2014. The report also noted an increase in non-revenue water from 37% in 2014 to 47% in 2023 in South Africa.
Gauteng’s non-revenue water stands at 49.5%, one of the highest in the country. Dr Sean Phillips, Director General of Water and Sanitation, highlighted that the high levels of non-revenue water, including physical losses, in Gauteng Province contribute to water supply disruptions.
Due to these high physical losses (water leaks) in municipal distribution systems, South Africa’s average per capita water consumption is approximately 218 litres per day, compared to the international average of 173 litres per day. Gauteng’s consumption is particularly high at 279 litres per day.
The report emphasised that Gauteng’s water interruptions are not due to a lack of bulk water provision, but rather high-water consumption driven by significant physical water losses in the municipal distribution system.
These challenges can be addressed through better operations, maintenance of water infrastructure, and effective implementation of water conservation, including demand management measures. It is crucial that these interventions include education and awareness, pressure management, reduction of night flows, repairing leaks, revenue collection, and debt supervision.
Moreover, Rand Water has collaborated with municipalities that are facing significant financial strain and impacted by non-revenue water. This spirit of collaboration was evident when the Emfuleni Local Municipality (ELM) agreed to pilot an innovative water services delivery model known as the Special Purpose Vehicle (SPV) to lead the provision of water and sanitation services in the area.
The SPV will include shareholders such as Rand Water, the affected municipality, and other third parties willing to invest in upgrading, refurbishing, operating, and maintaining water services infrastructure. Profits generated by the SPV will be distributed to investors as dividends, according to the SPV’s dividend policy.
Municipalities will contribute to the SPV by transferring their water services assets, which will be assessed, valued, and migrated, to the SPV. The Rand Water stake will be determined by its capital injection. This entity will then manage its own assets, liabilities, rights, and resources, effectively ringfencing water services under its umbrella.
For day-to-day operations, shareholders will appoint non-executive directors, who will then select the Chief Executive Officer or Managing Director of the SPV.
The SPV will be equipped with a Chief Operations Officer, Chief Financial Officer, and a full management team and staff. To ensure proper oversight, governance structures such as Audit, Risk, and Investment Subcommittees, composed of professional experts, will be established.
Consumers will pay their water bills directly to the SPV, ensuring that funds are exclusively used for water and sanitation services. Additionally, water and sanitation grants typically directed to municipal accounts will be redirected by the municipality into the SPV to maintain liquidity.
From a regulatory standpoint, compliance with various acts such as the Public Finance Management Act, Municipal Finance Management Act, Water Services Act, National Water Act, Companies Act, and Municipal Systems Act will be ensured. Permissions for transferring municipal assets to the SPV, which is partially owned by municipalities, will be sought from relevant government departments, including National Treasury, the Department of Water and Sanitation, and the Department of Cooperative Governance. Extensive stakeholders’ consultations and a change management process will be undertaken before implementation.
The SPV will generate revenue to cover all water provision costs, supported by a robust balance sheet and cash flows. It will be responsible for planning, operating, maintaining, refurbishing, and upgrading water and sanitation infrastructure, ensuring reliable, high-quality water supply for consumers.
This reimagined model promises a more sustainable and efficient approach to managing water services, ensuring better infrastructure and service delivery for municipalities.
Leading the change
A plateau of achievements has been made under the GCE’s direction and leadership, including the restoration of vital pump stations 2, 8, 9, and 10, as well as the three fully operational Sebokeng Module 5 and 6 wastewater treatment plants.
Additionally, the Vaaloewer Water Treatment Plant was successfully renovated, is operational, and produces water that satisfies all applicable criteria.
Mosai has established and fostered collaborations with the organisation’s municipal customers to ensure the provision of sustainable water quality and sanitation services. In turn, these engagements have resulted in the formation of the Rand Water Services, a subsidiary company with the sole purpose of executing special projects and water services business opportunities.
Besides No Drop, which focuses on non-revenue water, there are the Blue Drop and Green Drop.
The Blue Drop certification evaluates the quality of drinking water systems, from purification to delivery to consumers. The Green Drop certification focuses on wastewater treatment systems across the value chain, including municipal, Department of Public Works, and private systems.
Both certifications assess operations, maintenance, skills, qualifications, and the monitoring and control of water and wastewater infrastructure.
A detailed Blue Drop reported revealed a decline in water quality from 2014 to 2023. Specifically, 277 out of 958 (29%) Water Services Systems (WSSs) in 62 Water Services Authorities were found to be critically underperforming, compared to 174 out of 1036 (17%) WSSs in 33 municipalities in 2014.
Despite this, the report noted that major metropolitan areas generally performed well in the Blue Drop key performance areas. Gauteng, in particular, had the highest percentage (62%) of drinking water systems with excellent or good performance and the lowest shortfall of qualified staff.
Dr Phillips attributed this success to Rand Water’s management of water treatment and distribution in many Gauteng systems. None of the municipalities in Gauteng supplied by Rand Water were categorised as having poor or critical water supply systems.
“This supports Rand Water’s consistent assertion that its water meets the South African National Standard (SANS), ensuring it is safe for human consumption,” Mosai adds.
The future of Rand Water
Under the headship of GCE Mosai, Rand Water is not only committed to securing a reliable water supply, but also to promoting the delivery of water-related services to communities both within and outside its designated supply area.
The organisation effectively coordinates, administers, and manages its Corporate Social Investment (CSI) resources, through the Rand Water Foundation, to support community development projects in collaboration with various donors and relevant stakeholders.
The bulk water utility is crucial to strategic growth, which often necessitates making decisions that prioritise socio-economic benefits rather than immediate commercial gains.
Additionally, they promote prosperity and development not only in South Africa, but also across the African continent by supporting the broader objectives of the national government.
Mosai’s commitment to social impact embodies the organisation’s core values of equity and caring, which are crucial in a nation where access to clean water is a fundamental matter of social justice.
Mosai rounds the conversation off by firmly asserting: “The future of South Africa looks like one of hope, preservation, and effort. Rand Water’s vision is to be the cornerstone of sustainable, competitive water and sanitation solutions for Africa.
Our mission is clear: to meet the expectations of customers, partners, and government by attracting and developing cutting-edge skills in water services, maintaining robust financial health, and nurturing productive partnerships.”
Prof JJ Tabane is the Editor of Leadership Magazine.
Who is Sipho Mosai?
Sipho Mosai has been the Group Chief Executive of Rand Water since 2019. Before that, Mosai was Rand Water Chief Operations Officer for 10 years. Mosai, a scientist by training turned strategist and business leader in the water sector, boasts over 20 years executive management and technical experience in bulk and distribution water operations; water infrastructure planning, maintenance, refurbishment, and upgrade; project management, scientific services, strategic asset management; and sector growth and development.
Mosai has served as a non-executive and board member in various institutions. This includes serving on the Construction Industry Development Board (CIDB), where he chaired the Human Resources Subcommittee of the board in his first term and the chairperson of the Audit and Risk Committee in his second term. He currently serves on the boards of the Rand Water Foundation and Rand Water Services as a non-executive director.
Mosai holds the following qualifications:
• Bachelor of Science (University of the North)
• Bachelor of Science (Hons) (University of the North)
• Master of Science (University of Free State)
• Post Graduate Diploma in Management (University of Natal)
• Master of Business Administration (University of Kwazulu Natal)





