News24 | SA, Zim discuss R8bn cross-border dam that will feed Limpopo

Obert Jiri, secretary in Zimbabwe’s Agriculture Ministry, said there’s no timeline for the dam project to begin.

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South Africa and Zimbabwe are discussing a $500 million (R8.2 billion) dam project to supply water to an industrial hub near their border, according to documents seen by Bloomberg.

The proposed Thuli Moswa dam, to be built in Thuli in Zimbabwe, would have storage capacity of about 430 million cubic metres and could supply as much as 90 million cubic metres of water to the Musina-Makhado Special Economic Zone in Limpopo, according to the documents.

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

Chronic water shortages, rising industrial demand and climate risks are turning water infrastructure into an urgent investment priority for South Africa. Policymakers and financiers are pursuing dams, desalination plants and bulk-transfer projects to secure supplies needed to support economic growth, though large cross-border projects could take years to reach construction as governments wrestle with financing structures, water pricing and how to share costs.

A spokesperson for the Musina-Makhado Special Economic Zone, which is set to host energy-intensive industries including metals processing and manufacturing, said they could not comment, “at this stage.”

Obert Jiri, secretary in Zimbabwe’s Agriculture Ministry, said there’s no timeline for the project to begin.

If agreed, the project would enter 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 development would be one of the largest cross-border water projects involving South Africa since the decades-old Lesotho Highlands Water Project, which supplies the country’s industrial heartland.

Under the arrangement the kingdom delivers about 780 million cubic metres of water annually and earns about 4.2 billion maloti (R4.2 billion) a year in royalties.