On the dry stretch of land that runs along the South Africa–Zimbabwe border, officials are eyeing a massive water-storage scheme that could change the calculus for industry on both sides.
The proposed Thuli Moswa dam, to be sited in Thuli, Zimbabwe, would hold about 430 million cubic metres of water, roughly 114 billion gallons, and could deliver up to 90 million cubic metres to the Musina-Makhado Special Economic Zone in Limpopo province. A cubic metre is the volume of water that fills a cube one metre on each side.
“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,” said Wisane Mavasa, spokesperson for South Africa’s Water Department, in an emailed response to Bloomberg. The statement reflects the department’s position but has not been independently verified.
The Musina-Makhado Special Economic Zone, earmarked for energy-intensive activities such as metal processing, has not commented on the plan, noting that it is “at this stage” unable to provide details.
Obert Jiri, secretary in Zimbabwe’s Agriculture Ministry, added that there is no set timeline for the project to start. His comment is likewise a government claim pending further study.
If the parties reach an agreement, the project would move into an 18-month preparation phase followed by roughly three years of construction. South Africa would pay for the water under a contract that could run from five to 35 years.
The scheme would be one of the largest cross-border water projects since the Lesotho Highlands Water Project, which supplies about 780 million cubic metres of water each year and generates roughly 4.2 billion maloti (about $257 million) in royalties for Lesotho.
For small-business owners, the immediate impact is limited, the dam is still in the study stage and any water-supply contracts are years away. However, a reliable water source could eventually support the growth of manufacturers and service providers that operate in the SEZ, creating downstream opportunities for local suppliers, logistics firms and maintenance contractors.
Stakeholders will need to watch how financing, water pricing and cost-sharing arrangements are shaped, as those details will determine whether the project becomes a catalyst for broader economic activity or remains a long-term plan.
Read more about water-infrastructure projects in the Energy & Infrastructure section.
Moneyweb reported that chronic water shortages, rising industrial demand and climate risks are pushing water infrastructure to the top of South Africa’s investment agenda, with policymakers and financiers now actively pursuing dams, desalination plants and bulk-transfer projects to safeguard supplies for future growth, according to the documents seen by Bloomberg.
For a South African business owner, a cross-border water supply arrangement works like a long-term purchase contract: once the dam is built, the buyer secures a fixed volume of water each year at a price set in the agreement, while the seller receives revenue that helps cover construction and operating costs. The arrangement typically includes clauses on water quality, delivery schedules and dispute resolution, and it is overseen by the respective water departments of each country. Owners should watch for the finalised pricing formula and any escrow mechanisms that may be introduced to guarantee supply.
Moneyweb reported that the projected 18-month preparation phase will be followed by roughly three years of construction, after which South Africa would pay for the water under a contract that could span from five to 35 years, giving both governments ample time to fine-tune cost-sharing and financing structures.
Moneyweb reported that the Lesotho Highlands Water Project, the benchmark for large cross-border schemes, delivers about 780 million cubic metres of water annually and generates roughly 4.2 billion maloti in royalties each year, illustrating the revenue potential such projects can unlock for the supplying nation.
Business owners should keep an eye on how the joint feasibility study is framed, especially any environmental impact assessments and climate-resilience criteria, because these will shape permitting timelines and may affect the ultimate water pricing, which in turn influences the cost base for manufacturers planning to locate in the Musina-Makhado Special Economic Zone.
