Coca-Cola has unveiled a R500 million ($30 million) public-private partnership to tackle South Africa’s water infrastructure losses, targeting leaks, aging systems, and weak municipal revenue collection. The initiative brings together the Coca-Cola System, government agencies, development partners, and municipalities as pressure mounts to improve water security and the reliability of essential services.

Targeting water losses

The South Africa Non-Revenue Water Mechanism was announced following a meeting with President Cyril Ramaphosa and will initially target Gauteng, with phase one focused on the City of Tshwane municipal system. The program is part of Coca-Cola’s Africa Water Stewardship Initiative and is designed to attract private capital into public water infrastructure.

South Africa loses an estimated 47 percent of treated water through leaks and other non-revenue losses, creating a significant financial and operational burden for municipalities. The new mechanism will focus initially on pressure management to reduce leaks, alongside infrastructure aimed at improving industrial effluent monitoring and accountability.

Private capital meets infrastructure

Between 2026 and 2031, the initiative aims to mobilize R250 million from private-sector partners, matched by public-sector contributions to create a combined R500 million investment pool for Gauteng’s municipal water infrastructure and non-revenue water projects. Coca-Cola said the structure could eventually be expanded to additional municipalities across South Africa.

“Water security is fundamental to South Africa’s economic growth, community resilience and long-term sustainability,” Luis Felipe Avellar, president of Coca-Cola’s Africa operating unit, said. Coca-Cola Beverages Africa CEO Sunil Gupta said the partnership would demonstrate how public and private sectors can collaborate to address infrastructure challenges at scale.

Part of bigger investment

The water program follows Coca-Cola’s planned R17.6 billion investment in South Africa through 2030, underscoring the company’s broader commitment to its largest African markets. Coca-Cola said that investment will support production, distribution and innovation as the beverage group expands its operations in the country.

The World Bank Group’s 2030 Water Resources Group, the Platform for a Water Secure Gauteng, the Department of Water and Sanitation, Rand Water Services, Global Water Challenge and the City of Tshwane are among the partners supporting the mechanism. Coca-Cola HBC, which has agreed to acquire a majority stake in Coca-Cola Beverages Africa, also supports the initiative.

Water security takes priority

Water and Sanitation Minister Pemmy Majodina said reducing non-revenue water losses is essential to sustainable access for communities and industry, while the World Bank Group described the program as a practical model for improving infrastructure performance and municipal financial sustainability.

The latest commitment builds on Coca-Cola’s April announcement of a $1 billion investment in South Africa through 2030, made alongside Coca-Cola Beverages South Africa and Coca-Cola Peninsula Beverages. The wider investment will expand production capacity, strengthen distribution and support innovation in one of Africa’s most competitive consumer markets.