South Africa’s Nafasi Water lands $9.5 million Norfund investment

South Africa’s Nafasi Water has secured $9.5 million in funding from Norwegian development finance institution Norfund, alongside a follow-on investment from E Squared Investments, in a move that underscores rising investor interest in Africa’s water infrastructure sector.

The deal positions Nafasi to expand its footprint across Southern Africa, scaling its waste-to-value manufacturing capabilities and project-financed water infrastructure model as the region grapples with deepening water stress.

Expanding mining rehabilitation and water reuse

The capital injection will fund a pipeline of projects targeting mining-impacted water catchments, wastewater reuse, and advanced reclamation technologies. These efforts are aimed at reducing environmental degradation while improving water security in industrial and municipal systems.

Africa’s water sector remains structurally underfunded, with aging infrastructure and limited capacity increasingly strained by climate pressures and urban demand. Nafasi’s model, developing, financing, building, and operating treatment facilities, offers a commercially viable pathway to close that gap..

The company has already demonstrated its capabilities through large-scale projects, including its involvement in Namibia’s Erongo Desalination Project, and continues to serve both mining and public-sector clients.

Jobs and regional economic shift

Beyond infrastructure, the investment is expected to unlock job creation, particularly in South Africa’s Mpumalanga province, where the gradual decline of coal-fired power generation is forcing economic diversification.

By deploying advanced treatment facilities, Nafasi aims to create high-value engineering and technical roles while strengthening local expertise in water management.

Leadership signals urgency

Nafasi Water CEO, Suzie Nkambule, said the funding will accelerate solutions addressing both environmental risks and infrastructure deficits. “The backlog in water infrastructure investment and declining catchment resilience has intensified water insecurity,” Nkambule said, pointing to the need for scalable technologies, bankable projects, and localized skills.

She added that the company is expanding its role in public-private partnerships, particularly in wastewater treatment and reuse, as governments seek collaborative approaches to the crisis.

Investor confidence builds

For Norfund, the investment aligns with its mandate to back commercially viable projects with strong development impact. “Preventing polluted water from entering rivers and communities addresses one of South Africa’s most urgent environmental challenges,” said Carl Johan Wahlund, Norfund senior vice president for green infrastructure.

E Squared Investments CEO Gladwyn Leeuw echoed that sentiment, citing confidence in Nafasi’s technical expertise and its ability to deliver complex infrastructure, including acid mine drainage and wastewater reuse solutions.

Strategic positioning in a growing market

Nafasi Water, a 100% black-owned South African utility, specializes in industrial and municipal water treatment, desalination, and mine water reclamation. The company delivers integrated EPCM services supported by proprietary high-recovery (HiPRO) technologies.

The latest funding highlights a broader shift toward blended finance and public-private collaboration as Africa looks to tackle systemic challenges such as water scarcity, pollution, and climate resilience at scale.