World Environment Day Focus: Strengthening Drought Resilience and Protecting South Africa's Groundwater

World Environment Day??

On Wednesday, June 5, we celebrated World Environment Day. Established in 1972 by the United Nations, this day serves as a global platform to highlight pressing environmental issues such as air pollution, plastic pollution, illegal wildlife trade, sustainable consumption, and more. This year's theme, "Our Land. Our Future. We are #GenerationRestoration," focuses on land restoration and drought resilience.?

For today’s newsletter, we’ll be focusing on the element of drought resilience.??

Water: Third-largest risk of doing business in SA??

The World Economic Forum has listed water as the third-largest risk of doing business in South Africa according to a recent article in Business Day . The story in Business Day highlights the role that the private sector can play in helping to address the risks of poor water infrastructure. It notes that the recent changes in Regulation 28 of the Pension Funds Act (Reg 28 for short), which allows pension funds to have up to 45% of assets allocated to infrastructure, provide an avenue for institutional investment into water supply and management. Such investments, according to the article, offer benefits such as long-term steady returns, diversification and a positive environmental and social impact. ???

South Africa’s Groundwater in a delicate state?

Groundwater, accessed through boreholes that tap into underground aquifers, is a vital resource in South Africa where it is relatively abundant. However, these underground reservoirs may begin to deteriorate if neglected, according to an article published in?Engineering News . While South Africa primarily relies on surface water (rainwater collected by rivers, dams, and reservoirs), groundwater serves as an essential backup. As populations grow and climates shift, the demand for groundwater is increasing. Rural communities in particular depend on it for safe drinking water.??

However, human activities are taking a toll on these underground reservoirs. Agriculture accounts for two-thirds of groundwater consumption, with mining and residential use each making up about 15%. Various forms of pollution are contaminating groundwater sources, and the lack of aquifer rehabilitation and pollution control measures is exacerbating the issue. South Africa's many wetlands act as natural filters for clean water and are significant in feeding underground aquifers. The article notes that reducing pollution and improving sanitation are crucial to securing both groundwater and surface water in the country.?

As someone deeply concerned about our environmental future, I believe it's imperative that we prioritise the health of our groundwater systems. Neglecting these reservoirs now could lead to severe consequences in the future.?

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Brooke L. is a Senior Portfolio and ESG Analyst at RisCura. Her areas of expertise range from the energy sector, BEE/transformation, and international trade.?

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