Zimbabwe and South Africa are weighing a proposed $500 million dam as the neighboring countries seek a longer-term answer to water shortages and rising industrial demand along their shared border.

The project could strengthen water supplies for communities and industry as investment plans take shape around Musina and Zimbabwe’s southern border.

The proposed Thuli Moswa Dam in Zimbabwe would hold about 430 million cubic meters (114 billion gallons) of water and could supply as much as 90 million cubic meters to South Africa’s Musina-Makhado Special Economic Zone in Limpopo, according to project documents. The figures underscore the scale of infrastructure being considered.

Water deal sets stage

The latest discussions build on an existing agreement for Zimbabwe to supply water to Musina, a South African border town in Limpopo province.

That arrangement is linked to plans for the Musina-Makhado Special Economic Zone, where authorities expect industrial development to increase demand for dependable water supplies and supporting infrastructure.

The initial agreement was designed as a short-term response to Musina’s water shortages. It includes plans for a 20-kilometer pipeline and pump station to move water from Zimbabwe into South Africa, according to the Department of Water and Sanitation, providing a planned cross-border link for the region’s immediate needs.

South Africa has identified reliable water supplies for the Musina-Makhado industrial zone as an important element of cooperation with Zimbabwe.

As industrial and commercial activity develops, demand could rise beyond what existing infrastructure can provide, increasing pressure on both countries to secure additional sources and expand regional water capacity.

Dam remains under discussion

The department has also said new dams are being explored for the area, putting additional water infrastructure on the agenda as Zimbabwe and South Africa consider how to support communities and planned industry. The proposed Thuli Moswa project, however, remains under discussion and has not reached the construction stage.

Available official records confirm the existing water agreement and previous exploration of new dams, but do not establish that financing, a construction contract or a construction start date has been agreed for the $500 million project. That leaves the dam dependent on further discussions over its scope, funding and implementation.

For both countries, the proposal reflects a broader infrastructure challenge: securing dependable water supplies while supporting economic development around Musina and the planned industrial zone. The outcome will depend on negotiations over financing, construction and the long-term management of shared water resources as demand increases.