“Water Is Becoming a Business Risk”: An Interview with Mzoxolo Maki, CEO of Capitota on How the Looming Water Crisis Is Affecting MSMEs
South Africa’s water crisis has shifted from a background concern to a complete economic threat. More than half of households experienced water interruptions in 2024, with outages lasting days or even weeks in some regions. Municipal infrastructure failures, leaking pipes, and decades of under‑investment now pose a direct risk to business continuity, especially for MSMEs that lack buffers and backup systems.
To understand how this crisis is reshaping the MSME landscape, the Capitota Staff Reporter sat down with CEO Mzoxolo Maki for a candid conversation.
Staff Reporter (SR): Mzoxolo, the data shows that over 50% of South Africans experienced water outages last year. How is this affecting MSMEs on the ground?
Mzoxolo Maki (MM): We must understand that when households experience water outages, businesses experience them too. In 2024, it was reported that one in three households suffered interruptions lasting more than two consecutive days or 15 days over the year. For small businesses, that translates into lost production time, cancelled bookings, health‑and‑safety risks, and in some cases, complete shutdowns.
Small manufacturers can’t operate machinery without water. Restaurants and hospitality businesses can’t meet hygiene standards. Car washes, laundromats, bakeries, clinics, and agro‑processing enterprises are all directly affected. MSMEs don’t have the capital reserves to absorb these shocks, so every outage becomes a financial blow. So, to answer your question directly, the impact is severe and growing if the situation is not resolved as a matter of urgency.
SR: Many reports point to infrastructure decay and municipal failures as the root cause. What’s your view?
MM: The situation is quite depressing. In fact, the crisis is embedded in the establishments that are responsible for water than anything else. Engineers are on record stating that almost 50% of the country’s water is lost before it even reaches consumers because of failing municipal infrastructure and poor maintenance. Pipelines designed to last 20 years have not been replaced on schedule, and the maintenance cycle has been broken.
This is why we see recurring outages in both townships and suburbs. It’s not just drought or climate change, its governance, planning, and accountability.
MSMEs are paying the price for systemic failures they did not create. Large amounts of funds must be immediately invested to upgrade and maintain municipal infrastructure. MSMEs cannot afford what seems to be looming long periods of water-shedding.
SR: Government has announced a National Water Crisis Committee. Do you think this will help?
MM: It’s a step in the right direction. Official government communication has informed us that the President has elevated water to a national priority and committed R156 billion over three years for water and sanitation infrastructure. He has also signalled stronger accountability, including criminal charges against municipalities and managers who fail to meet their obligations under the Water Services Act.
But the real test is implementation. We’ve seen good plans before that never materialised. What MSMEs need is consistent, reliable water supply, not more policy documents. If the committee can enforce maintenance, accelerate infrastructure upgrades, and ensure transparent oversight, then yes, it will help. But execution is everything. Let us wait and see.
SR: What are the biggest operational risks MSMEs are facing because of the water crisis?
MM: There are four key risks that completely and adversely affect the operations of small businesses. In no specific order, they are:
- Business interruption: Production halts, service delays, and cancelled orders.
- Rising operating costs: Buying water, installing tanks, or relying on water tankers.
- Health and compliance risks: Especially in food, hospitality, and healthcare sectors.
- Reputational damage: Customers lose trust when businesses can’t deliver consistently.
In some municipalities, outages last days at a time, forcing MSMEs to choose between shutting down or spending money they don’t have on emergency water solutions. This is unsustainable. Bold steps must be taken urgently.
SR: How does this crisis affect township and rural MSMEs specifically?
MM: Township and rural areas are hit the hardest. Provinces like Limpopo, Mpumalanga, and KwaZulu‑Natal already have the lowest levels of access to piped water, and access has not improved. These areas also have the highest concentration of informal and micro‑enterprises.
When water outages occur, these businesses have no alternative supply. They don’t have boreholes, JoJo tanks, or capital for backup systems. So, the crisis deepens inequality as MSMEs in well‑resourced areas can adapt, while those in underserved communities fall further behind. It leads one to ask the question – is this crisis fuelled by a lack of funds or inefficiencies on the part of municipalities in these provinces? You will be forgiven for gravitating towards the latter.
SR: What role can the private sector play in supporting MSMEs through this crisis?
MM: The private sector must step in where the state is failing. Some of the most profitable business opportunities were because of government failures – the private schooling segment is a reasonable example to highlight. It seems that financing water‑efficient technologies, supporting MSMEs with emergency infrastructure, partnering with municipalities on maintenance and upgrades, as well as investing in skills development for plumbers, pipe fitters, and technicians are some of the major areas where the private sector can play a prominent role in supporting MSMEs through this dry time – excuse the pun.
A coordinated response is required as water security is not just a government issue, it is fast becoming an economic survival issue. Considering government’s policy position putting a high premium on the role of MSMEs in the economy, it will do well to create an environment that will encourage further investment and growth by small businesses.
SR: What message would you share with MSMEs who feel overwhelmed by the crisis?
MM: Stay positive and strong. Millions of South Africans and thousands of businesses are affected by the water crisis. But survival is possible. The starting point is to assess your water dependency, explore backup options, and seek support early.
The crisis is real, but so is the opportunity to build resilient, more sustainable businesses that can withstand future shocks.