The Norwegian Fund For Developing Countries is investing in the South African water company Nafasi Water Technologies (Nafasi), a leading integrated developer and contractor serving the mining and public sectors across southern Africa. The investment complements a follow-on investment by the existing shareholder E Squared Investments and will enable Nafasi to scale its waste-to-value manufacturing and project finance businesses.
Nafasi Water CEO, Suzie Nkambule. Supplied by Nafasi Water Technologies
The combined investment will support the development of a sustainable platform for water infrastructure projects focused on catchment rehabilitation in mining-impacted regions, the scaling of water reuse, and the company’s advancement of technologies for complex water reclamation and waste beneficiation. These initiatives will expand advanced water treatment capabilities, improve water security, address the integrated environmental rehabilitation of mining-impacted water catchments, and create skilled employment opportunities in southern Africa.
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.
Historically, Africa’s water sector has lacked adequate investment, resulting in an infrastructure backlog that is now impacting service provision and development planning.
While the pollution of water courses and over-abstraction of aquifers in water-stressed regions have impacted water security at scale, this has created a systemic crisis that will affect all aspects of life in the region. Solving this will require private and public institutions to work closely together.
“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 successfully deployed project-financed solutions for long-running, mining-impacted water rehabilitation projects. Consequently, it was a natural progression for Nafasi to move into the Public Private partnership space, and we are now actively engaged in PPP bids for wastewater treatment and reuse,” says Suzie Nkambule, CEO of Nafasi Water.
As part of their technology stack, Nafasi is able to recover useful chemicals from sludge and effluent left over from these treatment processes. This unlocks a novel circular economy that spans from water treatment to the production of valuable chemicals from waste products.
“We intend to continue aggressively developing and maturing technologies that can lower the cost of proactive treatment and reuse, in order to stop the problem of uncontrolled decant at its source,” adds Nkambule.
The equity investments by Norfund and E Squared will enable Nafasi to expand its work to protect the environment, while creating new jobs in regions like Mpumalanga. This is where investment in alternative sectors is needed, as the region grapples with the impending closures of large coal-fired power plants.
“By preventing polluted water from entering rivers and communities, Nafasi is addressing one of South Africa’s most pressing environmental challenges while creating jobs by 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,” says Carl Johan Wahlund, Senior vice-president for Green infrastructure at Norfund.
The expansion is expected to generate high-value technical jobs in southern Africa and help build local expertise in advanced water‑treatment operations. The company has already strengthened its engineering and project‑delivery capacity as it enters a capital‑intensive build phase.
“Nafasi’s management team has a proven track record in delivering complex projects, and we believe it is well-positioned to scale effectively and capture new opportunities in an interesting market. We are also happy to support a tech leader that also develops local expertise,” says Wahlund.
Gladwyn Leeuw, CEO of E Squared Investments, notes that water security is one of the defining challenges for southern Africa and that 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, including acid mine drainage and wastewater reuse,” he says. “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.”
“We are also pleased to partner with Norfund in supporting Nafasi’s next phase of growth as the company expands its project pipeline and advances technologies that contribute to a more sustainable and secure water future across southern Africa,” Leeuw adds.
Source
Supplied by Nafasi Water Technologies
| About Nafasi Water Technologies
Nafasi Water Technologies is a South African integrated developer, financier, contractor and operator of water infrastructure. The company serves the mining and public sectors across southern Africa, with expertise in acid mine drainage rehabilitation, municipal wastewater reuse, desalination, and waste-to-value chemical recovery. Nafasi’s model combines project finance structuring with end-to-end engineering and delivery to create long-term, bankable water infrastructure assets. |
| About Norfund
Norfund is the Norwegian Investment Fund for Developing Countries. It invests in businesses that contribute to economic development and to achieving the UN Sustainable Development Goals in developing countries, with a focus on renewable energy, financial institutions and scalable enterprises. |
| About E Squared Investments
E Squared Investments is a South African impact investment firm that invests in scalable businesses with significant development potential. The firm focuses on companies that deliver measurable social and environmental outcomes while delivering strong financial returns. |
