South Africa, Zimbabwe in talks over $500m dam project

A proposed dam in Zimbabwe could supply up to 90-million cubic metres of water to the Musina-Makhado Special Economic Zone (SEZ) in South Africa’s Limpopo province, according to project documents.

The Thuli Moswa dam, planned for Thuli in Zimbabwe, would have a storage capacity of about 430-million cubic metres.

“South Africa and Zimbabwe are still in discussions about a proposed joint study to assess the feasibility of building dams in Zimbabwe and transferring water to Limpopo province as a long-term plan,” South African Department of Water and Sanitation spokesperson Wisane Mavasa said in an emailed response to Bloomberg.

Chronic water shortages, rising industrial demand and climate risks have made water infrastructure an urgent investment priority for South Africa. Policymakers and financiers are considering dams, desalination plants and bulk water-transfer projects to secure supplies for economic growth.

However, major cross-border projects can take years to reach construction as governments work through financing arrangements, water pricing and how costs would be shared.

A spokesperson for the Musina-Makhado SEZ, which is expected to host energy-intensive industries such as metals processing and manufacturing, said the zone could not comment at this stage.

Zimbabwe Agriculture Ministry secretary Obert Jiri said there was no timeline for the project to begin. If approved, the project would have an 18-month preparation phase, followed by about three years of construction, according to the documents.

South Africa would pay for the water under an agreement lasting between five and 35 years.

The project would be one of the largest cross-border water initiatives involving South Africa since the decades-old Lesotho Highlands Water Project, which supplies the country’s industrial heartland. Lesotho delivers about 780-million cubic metres of water annually under that project and receives about 4.2-billion maloti (about $257-million) a year in royalties.

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