South Africa: Norfund and E Squared invest in Nafasi Water
The investment will support the development of a platform for water infrastructure projects.
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Norfund is investing R160 million (about $9.8 million) in the South African water company Nafasi Water Technologies, an integrated developer and contractor serving the mining and public sectors across Southern Africa. The investment complements a follow-on investment by existing shareholder E Squared Investments and will enable Nafasi to scale its waste-to-value manufacturing and project finance businesses.
The combined investment will support the development of a platform for water infrastructure projects. Focus areas include catchment rehabilitation in mining-impacted regions, scaling water reuse at the municipal level, and advancing technologies for complex water reclamation.
Nafasi develops, finances, builds, and operates water treatment facilities for industrial and public clients, including large-scale seawater desalination projects such as the Erongo Desalination Project in Namibia.
“The extent of the backlog in water infrastructure investment, coupled with deteriorating catchment resilience due to climate and pollution factors, has accelerated water insecurity for many communities. We need the appropriate technologies, bankable projects, and skills at the local level. We have been successful in deploying project-financed solutions for long-run, mining-impacted water rehabilitation projects. Consequently, it was a natural progression for Nafasi to move into the public-private partnership (PPP) space and we are now actively engaged in PPP bids for wastewater treatment and reuse,” said Suzie Nkambule, CEO of Nafasi Water.
“By preventing polluted water from entering rivers and communities, Nafasi is addressing one of South Africa’s most pressing environmental challenges while creating jobs in building commercially viable solutions for the future. We are pleased to partner with a strong local team that combines technical capability with a clear long-term vision,” commented Carl Johan Wahlund, senior vice president for green infrastructure at Norfund.
“Water security is one of the defining challenges for Southern Africa. Addressing it will require innovative technologies, strong local expertise, and catalytic partnerships between the public and private sectors. As an existing shareholder in Nafasi, we have seen first-hand the strength of the company’s technical capabilities and its commitment to tackling complex water challenges such as acid mine drainage and wastewater reuse. Our follow-on investment reflects our confidence in the management team and in Nafasi’s ability to deliver complex infrastructure projects that strengthen water resilience in the region,” added Gladwyn Leeuw, CEO of E Squared Investments.
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