SETUMO STONE | Ramaphosa reform agenda that begins where privatisation begins

  • Why is the failure of the state treated as proof that private actors should enter
  • Why is the state’s collapse treated as a market opportunity?

The National Water Action Plan begins with a fact nobody disputes that municipal water services are failing.

Infrastructure is deteriorating. Non-revenue water is high. Maintenance has collapsed. Many municipalities cannot reliably provide safe water.

The dispute begins with the solution, which critics would view as evidence of how private interests that have captured government policy under President Cyril Ramaphosa are running amok.


Expanding the role of private participation

The plan moves from failure to a particular answer that separates municipalities from water provision, creates licensed providers, and expands the role of private participation, including concessions, public-private partnerships and private financing.

That move is presented as reform. But the assumption beneath it is not even tested because it is ideological.

The document establishes that municipalities are failing. It does not establish that private operators will perform better.

It establishes a crisis of delivery. It does not establish a superiority of private delivery. That distinction is not a technical detail. It is the entire argument.

The logic is straightforward. Government is failing. Therefore, government should allow others to provide the service.

Others means private operators. Private operators are assumed to bring efficiency, skills and investment.

But where is the evidence?


Where is the comparison between public and private providers operating under similar conditions?

Where is the analysis showing that private water operators in South Africa have consistently delivered better outcomes?

Where is the evidence showing that the failure is caused by public ownership rather than corruption, weak management, political interference and institutional decay?

It is absent.

Instead, the document begins with a conclusion and works backwards.

The state has failed. The market must, therefore, enter.

The state has failed. The market must, therefore, expand.

The state has failed. The market must, therefore, take over functions historically performed by public institutions.

Ideology instead of scientific finding

This is not a scientific finding. It is ideology.

The document describes private participation as a solution to infrastructure backlogs because public funding alone cannot address the problem. It proposes blended finance, public-private partnerships, performance-based contracts and management contracts.

But private finance is not free money. It expects repayment. It expects returns. It expects a commercial logic.

But who carries the risk when commercial interests collide with a constitutional obligation to provide universal access?

If a municipality fails, government intervenes. If a private operator fails, government still intervenes.

The public does not receive its water from a company. It receives its water from the state’s constitutional obligation.

The state cannot outsource accountability. It can only outsource operations.

That is the contradiction.

The argument says government is too weak to deliver water. But government must still be strong enough to regulate private providers.

Government is too incompetent to run the system. But government must still be competent enough to control those who enter it.

Government cannot maintain infrastructure. But government must guarantee the conditions that allow private companies to earn returns from that infrastructure.

The state is removed from delivery but remains responsible for failure.

That is the model being created.

Privatisation coated in euphemisms

The plan avoids the word privatisation. It speaks of partnerships. It speaks of alternative service delivery mechanisms. It speaks of competent entities.

The language changes. The policy direction does not.

A public monopoly becomes a regulated market. A municipal function becomes a contracted service. A citizen becomes a customer. A right becomes a revenue stream.

That is why the unanswered question matters.

Why is the failure of the state treated as proof that private actors should enter, rather than proof that public institutions must be rebuilt?

Why is the answer to state weakness more private involvement?

Why is the state’s collapse treated as a market opportunity?

The water crisis is real. The failures are real.

But the argument that private operators are the natural answer is not a conclusion produced by evidence in the document.

It is an ideological starting point.

The question is why the preferred response to a weakened state is not rebuilding state capacity, but transferring more responsibility to the market.

That choice is political. And Ramaphosa is consistently making that choice.

 

 

 

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  • The National Water Action Plan acknowledges municipal water services are failing but proposes increasing private sector involvement as the solution.
  • The plan shifts water provision away from municipalities to licensed private providers through partnerships, concessions, and private financing, without providing evidence that private operators perform better.
  • The article argues this shift is ideological, not evidence-based, questioning the assumption that private participation ensures efficiency or improved outcomes compared to public management.
  • It highlights contradictions in expecting a weak government to effectively regulate private providers while outsourcing core water delivery functions to them.
  • The plan uses euphemistic language to mask privatization, reframing citizens as customers and rights as revenue, while political choices under President Ramaphosa favor market solutions over rebuilding public institutions.

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