Zimbabwe, South Africa: Thuli-Moswa Dam Zimbabwe South Africa Talks Begin

• Zimbabwe and South Africa are discussing the proposed Thuli-Moswa Dam, located in Zimbabwe, to supply water to South Africa's Limpopo province.
• The dam is projected to have a storage capacity of 430 million cubic meters and deliver up to 90 million cubic meters annually to the Musina-Makhado Special Economic Zone.
• The project involves an 18-month preparation phase followed by approximately three years of construction, with South Africa paying for the water under a 5-35 year agreement.
• Current discussions focus on a joint feasibility study, with no timeline yet established for work to begin.
• The initiative aims to address South Africa's chronic water shortages, rising industrial demand, and climate risks, particularly benefiting the Musina-Makhado SEZ.

The impetus behind the Thuli-Moswa Dam feasibility study and subsequent development talks stems from South Africa's escalating water challenges.

Zimbabwe and South Africa are currently engaged in high-level discussions regarding the potential development of the Thuli-Moswa Dam, a significant cross-border water infrastructure project. This proposed dam, slated for construction at Thuli in Zimbabwe, is envisioned to possess a substantial storage capacity of approximately 430 million cubic meters. Its primary objective would be to supply water to South Africa's Limpopo province, specifically targeting the burgeoning Musina-Makhado Special Economic Zone (SEZ).

Documents reviewed by Bloomberg indicate that the project could deliver up to 90 million cubic meters of water annually to the Musina-Makhado SEZ. Wisane Mavasa, a spokesperson for South Africa’s Department of Water and Sanitation, confirmed that these Thuli-Moswa Dam Zimbabwe South Africa talks are still in their preliminary stages. Mavasa clarified that the two nations are discussing a joint study to assess the feasibility of building dams in Zimbabwe and subsequently transferring water to Limpopo as part of a long-term strategy to address regional water needs.

While the Zimbabwe South Africa water agreement is still being explored, there is currently no definitive timeline for the commencement of work on the Thuli-Moswa Dam. Obert Jiri, the Permanent Secretary in Zimbabwe’s Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, stated that a start date has not yet been established. The Musina-Makhado SEZ, which is poised to host energy-intensive industries such as metals processing and manufacturing, declined to comment on the project at this juncture.

Should an agreement be reached between the two nations, the Thuli-Moswa Dam project is projected to unfold in distinct phases. Initial plans outlined in the reviewed documents suggest an 18-month preparation phase would precede the main construction effort. Following this preparatory period, the actual construction of the dam is estimated to take approximately three years to complete.

The financial arrangement for the water supply is also a key component of the ongoing discussions. South Africa is expected to bear the cost of the water supplied from the Thuli-Moswa Dam. This payment structure would be formalized under a long-term agreement, with a proposed duration ranging from a minimum of five years to a maximum of 35 years. This cross-border dam project finance model highlights the significant investment and long-term commitment required for such an undertaking.

The impetus behind the Thuli-Moswa Dam feasibility study and subsequent development talks stems from South Africa's escalating water challenges. The country is grappling with chronic water shortages, a situation exacerbated by rising industrial demand and the increasing risks posed by climate change. These factors have collectively elevated water infrastructure development to an urgent national priority, particularly in regions like Limpopo.

The proposed Musina-Makhado SEZ water supply from the Thuli-Moswa Dam is critical for the economic zone's planned industrial expansion. The SEZ's focus on energy-intensive sectors underscores the necessity of a reliable and substantial water source. This Limpopo water infrastructure development project, if realized, would not only support industrial growth but also represents a strategic response to the broader water security concerns facing South Africa, making the Thuli-Moswa Dam Zimbabwe South Africa talks a pivotal moment for regional development.

This proposed cross-border dam project signals significant future legal work in project finance, infrastructure development, and water rights agreements between Zimbabwe and South Africa, particularly impacting industries within the Musina-Makhado SEZ.

Source: Original reporting via Bloomberg