Some comments about the demand growth and supply patterns:

·         In the early days, Rand Water’s main consumer was mining activities.  This has evolved over the decades, reflecting the changing face of Gauteng, and it is believed that at least 70% of our water is supplied to the urban domestic consumers that now dominate our market.  Thus, demand growth is now closely linked to population growth rates, with economic growth playing a secondary role.

·         For some time now, population growth has been slowing, and this trend is projected to continue.  This trend is recognized internationally in urbanizing populations.  In SA, it is compounded by the impact of AIDS on fertility and mortality rates.  Growth in demand in the short term is expected to be about 2.5% per annum, dropping to 2% per annum by 2020, and continuing to drop thereafter. Effective water demand management could reduce growth further.

·         Some 92% of our water is supplied to our municipal customers, for on-supply to domestic, industrial, commercial and other end users. Most of the remainder is supplied to our direct mining customers.  About 75% of supply goes to our top three customers – Johannesburg, Ekurhuleni and Tshwane Metros.