Water Bill a Threat to South Africa’s Economic Future, IRR Warns MPs

Staff Writer

August 17, 2026

2 min read

Johannesburg-based think tank says racial requirements in Bill could severely harm South African agriculture.
Water Bill a Threat to South Africa’s Economic Future, IRR Warns MPs
Image by Jonas KIM from Pixabay

A new Bill governing water-use permissions in South Africa risks the future of the country’s agriculture, and the economy as a whole, and could threaten food security. This message was communicated to Parliament by the Institute of Race Relations (IRR), a think tank based in Johannesburg, in a submission to the Parliamentary Committee on Water and Sanitation. 

The National Water Amendment Bill of 2026 seeks to alter commercial water-use permissions to make race and gender the overriding consideration in issuing licences. It also provides latitude for the minister to make regulations establishing criteria for licencing, accompanied by provisions that allow existing water-use entitlements to be phased out, which could be used for ratcheting up “transformation” demands. 

The IRR’s submission argued that many of its provisions are unconstitutional, and that if enacted, the Bill will undermine property rights and the rule of law, damaging the economy and impoverishing many South Africans. 

Dr Anthea Jeffery, who made the submission on behalf of the IRR, remarked: “The harm to the agricultural sector will be particularly severe. The poor will suffer the most, for the farming sector is crucial in sustaining food security, constraining food inflation, and providing jobs (some 960 000 in 2025) to people with often limited skills.” 

The legislation suggests that water access could be used coercively to push land reform on a racial basis. By limiting an essential agricultural input, existing commercial farmers could be forced out of business or conclude black economic empowerment (BEE) deals to remain operational. For example, if a farmer is not BEE compliant and is restricted from getting water because of that, they would effectively be forced to get a BEE partner to remain operational.

However, Jeffery points out that “successful land reform cannot be achieved through the forced redistribution of land and water to people generally lacking the many ingredients vital to success in farming”. 

The IRR recommended that the Bill be scrapped. Government policy should not attempt to disadvantage any existing farmer, but rather “focus instead on expanding the number of successful commercial farmers of all races”. 

“All these farmers need secure property rights to both land and water,” the submission continued. “It is only with this foundation in place that the various other factors vital to successful farming can be addressed in innovative and constructive ways. At the same time, no one should be encouraged to believe that farming is an easy option, for agriculture is an exceptionally high-risk sector – and all the more so in a water-stressed country such as South Africa.” 

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